VAT evasion still rampant

I am very concerned at the high rate of VAT evasion that is still rampant in this country. And - even if the GRTU and the usual knight defenders of SMEs, or professional bodies such as MAM, choose to deny it, or continue to claim special sectorial treatments - the fact remains that, through such continued evasion, the government (any government) remains shackled in any wish it might have to reduce direct taxation (mainly income tax).

Many years ago, when VAT was being introduced, I distinctly remember then Finance Minister John Dalli saying in a public conference that with every additional "x" (I have now forgotten the exact figures) of VAT collected by the government, "y" of income tax would be deducted in the subsequent budget. Now that is a concept (shifting away from direct taxation in line with revenue increase from indirect taxation) which, at this time when next year's budget is probably being conceived, should be pursued. It needs to be put over, in both cajoling (educative) and disciplining modes, that that is the fiscal route that the government intends to pursue.

There simply are not enough VAT inspectors out there on the road. Many shops, services providers, corner hawkers, professional operators and what have you, are getting away with daylight robbery. And the culture inevitably pervades onto the purchasers themselves of such services, to the point of the usual "Bil-VAT jew bla VAT?" ("Including or excluding VAT?)" forms of pricing or dealing. I hope I'm wrong, but I wouldn't be at all surprised if at some stage the EU will start telling us to either get our act together on this score or risk some form of fund cutting somewhere.