Friday, 11th April 2008
Departure tax revision delayed
The revision of the controversial departure tax, which was supposed to have been carried out by the end of March, has been delayed by a few months, The Times has learnt.
In its electoral manifesto leading up to the March 8 election, the Nationalist Party pledged to remove the tax altogether.
The European Commission and Malta had earlier agreed that the departure tax of €23.29 (Lm10) was to be adjusted during the first few months of this year. But the move has now been delayed due to the March election and dissolution of Parliament.
Commission sources yesterday expressed regret that the tax has not yet been changed.
Last December, following talks between the government and the European Commission, it was decided that Brussels would temporarily suspend its decision to refer the issue to the European Court of Justice in order to give the Maltese authorities time to adjust the tax and bring it in line with EU law.
"Following discussions between the Commission and Maltese authorities, including a written commitment that Malta will be revising this tax regime, the EU executive decided to halt its legal process to give the Maltese authorities some time," the sources said.
"The deadline given by Malta was the end of March. However, we have now been informed that Malta needs some more time," the sources said.
The government is claiming that the delay was caused by the general election held a month ago and the fact that Parliament has still not reconvened.
"It is true that we had told the Commission that by the end of March we will be in a position to send them the new legislation. However, because of the election and since Parliament is not constituted we are not in a position to pass new laws at the moment," a government spokesman said.
Asked when the law is expected to be changed, the spokesman said the intention is that this will be one of the first items to be discussed by the new Parliament, meeting on May 10.
"We are not in any way retracting our promise to revise this tax. This was also promised in the Nationalist Party's electoral programme. Our commitment is there and we will deliver at the earliest possible time," the spokesman insisted.
The Commission deems the airport tax discriminatory as it is only levied on passengers beginning an international journey outside Malta. This, therefore, puts an unfair burden on residents in Malta and makes it more difficult for them to receive and provide services in other member states.
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Comments
You have every right to think what you think. We are free.
When submitting my comments on various topics I honestly do not really care which side I am criticising.
It could be PN,MLP,AD or others for all I know.
I comment on FACTS as I feel I am free I should do within the limits of the law.
Everyone is free to do so as well.
Although I have my personal political opinion I do not take that into consideration when commenting on any issue.
There exists no side which is always right or always wrong.
Where on earth in the article did you read that the tax will be REMOVED ? Where on earth does the Govt. spokesman say that the promise was to remove ?
If you read properly, the government spokesman said: ""We are not in any way retracting our promise to revise this tax. This was also promised in the Nationalist Party's electoral programme."
You see.... the government spokesman said REVISE, and he is trying to convince us that the electoral promise was to REVISE .... which, if according to what you are saying the promise was to REMOVE, then the government spokesman is not saying the truth, no ?
According to Collins English Dictionary the meaning of these words is:
REVISE : to change or alter
REMOVE: get rid of
It seems to me that the two things are totally different. Just like what you (remove) and the Government spokesman (revise as promised in the electoral campaign) are saying. Earlier on I already said what will probably happen to the tax.
We may not have a double-barrel surname to make us l ook intellectual, but rest assured that we are neither dumb, nor stupid nor suffer from dementia !
Decide on which side are you? You are telling that it is wrong and removed and then you are telling me that I'm wrong.
I think who does not keep his word must face the truth and go.
Sorry the way you wrote you are showing yourself and your Party that you were and still are against Chinese People.
Why on earth did you had to use that word. Or you don't know how to use good English words.
We will see who is right. Time gives the right answer. Wait until the Parliament start.
Wait and see. I don't mind.
Mr. Joe Cardona:-
The only Prime Minister who made an early election since 1962 was Alfred Sant only after 2 years in power. He lost that election (1998) and the one after (2003) and the after (2008).
So put your mind at ease because I assure you that there won't be an election. The next election is in 5 years time.
GOOD - LUCK
All we have an Opposition party in shambles - putting the pieces together to start a new beginning after having wasted years in oppostion concentrated mainly on criticising every government decision, using the say no to all attitude, than on making their party more credible. This is the reality we have today.
There is one way for the Prime Minsiter to do - This is Resign and call new elections and don't come with the excuse of Malta can't do another election.
We are a Free Country.
About time this is 'Removed' and not 'Revised'.
I remember when a party leader said he will Revise electricity bills in 1996 - yes - they were revised - but upwards .
Back to the point:
We have VAT and taxes based on consumption of commodities - energy in particular.
Parliament should agree to abolish as many existing direct taxes - meter charges, TV licences. -
BUT.... MOST IMPORTANT : GOVT should introduce annual income tax rebates on homeloan repayments...this would be extremely beneficial for thousands who are, each month, paying back millions to banks for their 'RESIDENTIAL' home. Stress on 'residential'
GOVT. is collecting tax twice from this money - once from the worker's salary and once from the bank .
The total repayments should be listed as nontaxable income
This incentive will increase purchasing power and generate economic growth.
While we are / were given the impression that this departure tax was going to be removed, somehow I have a feeling that will happen will simply be to revise the tax so as to BRING IT IN LINE WITH THE EU LAW.
Let`s keep in mind that this tax is against the EU Law not because of the tax in itself, but becuase it is paid ONLY on return trips originating from Malta.... thus discriminating against those leaving from Malta (hence 99.9% Maltese) with respect to other EU citizens leaving from their countries, restricting the free-movement issue.
So, for all that matters, the Government may decide to :
(a) remove this tax for the Malta-EU-Malta trips only so as not to fall under the jurisdiction of the EU law
(b) impose on all outward trips from Malta (even on the EU-Malta-EU trips) so as not to remain discriminatory on the Maltese residents.
Of course, if for example option (a) is chosen, the government can then decide to raise the tax on the other trips so as not to lose revenue.
However, I think we can forget having this tax removed all together (the Government does not want to lose revenue ... on a smaller scale it is similar to what the PN used to criticise the MLP for as regards the substitution of VAT).
In my opinion, irrespective of how much it would cost the country, the EU should now take action against the Government and declare that the EU law was broken without any further deadline extension (after all, if I am given a deadline by the Maltese courts to pay some kind of fine, no feeble excuse will spare me from further punsihment). If the EU court was to take the decision BEFORE the Government brings the tax in line with the EU Law, the Government will be obliged to give the money back to all those Maltese residents who paid this same tax from 1st May 2004 till today.
And be prepared for more of the same in the car registration tax issue. It will not be removed, but revised (after all, as regards new cars, the EU concern is that we are paying the 18% VAT on the registration tax .... nothing more) ... and a revision does not necessarily mean that things will be cheaper..... it simply means that they will be 100% legal.
Did it ever occur to you that maybe the P.M. is tired of being accused of forging ahead without consultation with a leaderless party?
If elected I could not promise you paradise, but once elected I WOULD KEEP MY WORD !
But more importantly he should have the ability afterwards to explain why it didn't happen.
In this case the excuse that Malta needs more time, is rather pathetic to say the least.
There were words however that sounded untuned because in the manifesto, the government promised to remove it completely & not to revise it!!
May I remind the readers that Dr Joseph Muscat raised this issue around 2 years ago with the EU commission & also helped the Maltese Federation of Travelling Agencies in sending their complaints to the commission. Dr Muscat had ever since continued pressuring & blaming GonziPN's stubbornness in not revising this tax as it is discriminatory.
What a pathetic, strenuous, tiring and exhausting government!!!
The necessary law should be enacted or amended in a way to be retroactive or backdated to April 1, the day when bounded by the pledge given to the European Union, departure tax should have been removed.
A promise is a promise and should be honoured.Dr. Gonzi, the new Nationalist Government 100 days honeymoon unfortunately are being rather turbulent and does not augur too much.
I know the PN Governemnt have the skills to manoeuvre and do not envisage any repeat of history like what happened in 1998, but please do not forget that the same government enjoys only a wafer thin and relative majority. So please Dr. Gonzi be true to your word.
This is the fun part for those who have voted AD.
Carrots are usually hung in front of donkeys in order to make the donkeys move forward.
PS. I am not labourite, but before being nationalist I am Maltese, so I am in no mood to be apologetic for you. I hope now that you are missing the deadline for the removal of the dep. tax, people who will be travelling now will get a refund of the tax.
Put on John Bundy's song..Pajjiez tal-Mickey Mouse.