Call for part privatisation of education system

The Malta Institute of Management (MIM) believes the education system should be partially privatised in order to achieve the efficiencies that are not always achieved in a bureaucratic environment.

Through privatisation and through rendering Malta a centre of excellence in education, the system could head towards self sufficiency without losing the social element, the MIM believes.

MIM was commenting and presenting its proposals on the pre-budget document published by the government for the next budget.

The MIM expressed satisfaction that parts of its recommendations have been included in the document and said it was sure that the government would consider incorporating even more of its proposals to accelerate the momentum of Malta's economic and social development.

MIM noted that the main limitation within the education sector from a country's perspective was funding and sustainability. Although from year to year each administration increased the amount of allocated funds to the system, it was a recognised reality that it has not been enough.

MIM said that the interpretation of the VAT Act with respect to education provided by Maltese enterprises representing foreign entities must be revisited.

The way that the VAT Act was being interpreted by the VAT Department was leading to certain parts of higher education being subject to VAT. "This anomaly should be addressed without further delay as it is creating injustices on students and rendering parts of the private sector not competitive," MIM insisted.

The government should also provide for tax credits with respect to the attraction of foreign students to Malta.