Tax Compliance Unit should be more objective

The Tax Compliance Unit should adjust its approach, Labour deputy leader Charles Mangion said yesterday, adding that his party believed the unit's assessments should be "more objective".

Dr Mangion was replying to questions following a press conference about the self-employed. Asked to clarify the party's stand on the Tax Compliance Unit Dr Mangion said benchmarking can be a very positive tool if used properly. There have recently been conflicting messages about whether the self-employed were paying their tax dues and whether a future MLP government would ensure that everyone paid their due.

Dr Mangion said the Federation of Industry, the GRTU and Chamber of Commerce all complained about the tax burden. Tax revenue had grown but this was not because of economic growth, but because of new taxes like eco-taxes and new tariffs.

Dr Mangion argued that the self-employed in Malta were "giving up"; 360 of them had closed their business last year. Surveys showed that sales had dropped by one per cent last year and people's purchasing power was also declining.

The Labour deputy leader said the self-employed had to be given a new dignity and an effort had to be made to keep bureaucracy in check.

Too many authorities with overlapping powers were being created and these were stifling the self-employed.

Labour's plan for economic revival identified several problems and the party was committed to solving them, he said.

Asked what incentives the MLP had in mind, Dr Mangion said the tax burden should be eased and permits or licences issued sooner.