Financial control by diktat
I note from the report of the proceedings in Parliament that the government intends to legislate in order to bring into the Maltese economy undeclared cash "hoarded" by individuals and in draconian fashion penalise them by charging a four per cent...
I note from the report of the proceedings in Parliament that the government intends to legislate in order to bring into the Maltese economy undeclared cash "hoarded" by individuals and in draconian fashion penalise them by charging a four per cent registration tax and forcing them to invest the cash for a year without payment of interest.
Has this government gone bonkers? Does it not realise that people have chosen not to invest their money in interest bearing accounts? Did it not realise that the value of the euro had been set too high so that it was inevitable that those that have the "readies" would soon be buying lots of that currency? Did it not realise that it will draw into the net all those that have not bought any euros at all and will force, it hopes, those that have cash lawfully hidden away into paying a registration tax against their will?
Normally, tax would be paid on interest derived from investments but what this government wants to do is to tax their capital which would in effect be a wealth tax. This measure will hurt the small man who chooses to leave his money hidden under his mattress. This is an extortionate step by this government which hopes to avoid euro holding and profit taking that it thinks will result.
It assumes that Lm250 million will suddenly flood the economy and that people will be queuing up to declare what is legitimate in the first place. The government will therefore attempt to make criminal that which was in the first place lawful. This is financial control not by market forces but by diktat.
The Labour Party knows all this yet is in cahoots with the government by its acquiescence and will do nothing to correct this violation of human rights. Reading what their spokesman had to say on the matter, he could not resist making political capital out of this situation but without having a single idea to ameliorate it or help those who have saved long and hard to accumulate some capital for a rainy day. Why is Alternativa Democratika staying silent on this?