Commission starts departure tax investigation

Following various complaints addressed to the European Commission and recent parliamentary questions on the issue, the Commission recently started an investigation to clarify whether the departure tax imposed by the government on passengers leaving Malta is in conformity with EU law.

Replying to questions submitted by Nationalist MEP Simon Busuttil, European Transport Commissioner Jacques Barrot revealed that the Commission has started an investigation and has already asked the government for explanations.

He said that the Commission is currently gathering all relevant information with the aim of examining whether the construction of a departure tax at Malta airport is compatible with EU law.

Mr Barrot told Dr Busuttil that the investigation will verify whether this tax is discriminatory.

"If the existence of discrimination is established, the Commission will examine whether any such discrimination is incompatible with Community legislation. For instance, discrimination of own nationals is not prohibited under certain circumstances by the EC Treaty."

Commissioner Barrot's response arrived following five different parliamentary questions by Dr Busuttil on this issue.

Last August, the departure tax in Malta was increased from Lm10 to Lm20.

In his questions Dr Busuttil claimed that in its current form, the departure tax is not compatible with EU law on more than one count and is calling for it to be revised or repealed. He claims that the tax breaches fundamental EU principles on free movement of persons, free movement of services and free movement of capital.

Sources close to the Commission told The Sunday Times that the Commission has already received an official response from the Maltese authorities over the issue.

The government submitted the legal texts of this tax to the Commission and maintained that there is no discrimination whatsoever in the implementation of this tax and that it complies with EU law.