Ivan Camilleri, Brussels
Malta in the dock over departure tax
Brussels has decided to haul Malta before the European Court of Justice over the island's failure to amend the controversial departure tax rule, which the European Commission says discriminates against local passengers.
The decision was taken despite the government's announcement that it plans to abolish the remaining part of the tax as from November.
Commission sources confirmed that the College of EU Commissioners decided to lodge a formal complaint to the court.
"The Commission had already decided a year ago to take Malta to court over this issue. Following discussions with the Maltese authorities we decided to freeze this decision in order to give time to the Maltese authorities to implement the necessary changes.
"A year has passed and still we are waiting for a result. That is why we decided to unfreeze our position and proceed with court action," a Commission official said.
Finance Minister Tonio Fenech told The Sunday Times that the government decided to abolish the tax in November. The timing was chosen to coincide with the change of airline schedules.
A spokesman for the government yesterday insisted that Malta had notified Brussels of its intentions a few weeks ago, adding that it should have solved the outstanding issue by the time the court case gets under way.
The removal of the remaining €23.29 (Lm10) departure tax (halved from €46.58) was one of the promises made in the Nationalist Party's electoral programme.
Currently, the departure tax contributes almost €3 million in revenue to the Maltese tax coffers.
The Commission says the airport tax is discriminatory as it is only levied on air passengers beginning an international journey from Malta. It argues that the current tax structure puts an unfair burden on residents and makes it more difficult for them to receive and provide services in other member states.
The issue was first raised by Nationalist MEP Simon Busuttil who asked the Commission to investigate whether the tax conforms to EU rules.
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In Discussion
8 Comments
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Saviour Sam Agius
Jun 8th 2008, 10:20
It will be abolished in November to take advantage of all the locals who travel abroad for summer. That's the main reason and to hell with everyone who believes it's because it coincides with the change in airline schedules. How stupid and naive do they think we are?
If it found to be unfair, I believe it has to be refunded to the nearest cent. It cannot suddenly become unfair as from November. What about those who've already paid this tax plenty of times in the first few years of admission into the EU?
philip pacep
Jun 8th 2008, 09:08
Welcome to the circus.
What is the Government doing by delaying a very sore issue that has been hanging over it;s for a very long time?
NOTHING.
By which right has the LAS VEGAS WHIZZ KID to say that it was going to be removed in NOVEMBER to coincide with the new schedule?
Hey what about us, NOW!!!!!
WHAT PERVESE AND INSANE LOGIC!!!!
MORE BANANAS,PLEASE?
A Daley
Jun 7th 2008, 22:50
Ha ha ha.
Nidhlu fl'EU nsiru bhall barra Eddie said. Yeah - as if!
What a farce this administration is prooving to be amongst other countries in the EU!
What a farce.
X'MISTHIJA
What an arrogant administration we have!
Impliment what you signed for, and put up or shut up!
K. Vella
Jun 7th 2008, 19:09
Yes, Mr. Aquilina, and the European Court of Justice is finally doing what we citizens wanted to do for years, abolishing the departure tax.
It is indeed nice to be in the EU, as you correctly stated.
laurence schembri
Jun 7th 2008, 18:00
Why November? Departure Tax is a dicriminatory levy and it should and it could be abolished at a stroke of a pen, what has the airline schedule to do with government work.
If it`s going to take five months to simply say, no more discrimination against Maltese Citizens, how long is it going to take government to implement the 350something promises published in their electoral Manifesto? Tax is one thing...but cheating is cheating.
carmelo Briffa
Jun 7th 2008, 16:56
To be a good member of the Club (EU) one have to abide by all the rules of the club!!!! is Malta doing so? hoow about the heavy taxes on used cars bought from EU States?
Charles Sammut
Jun 7th 2008, 11:21
"Finance Minister Tonio Fenech told The Sunday Times that the government decided to abolish the tax in November. The timing was chosen to coincide with the change of airline schedules."
What an insult to people's intelligence! Does this minister think that we are so credulous? It would have been less unconvincing had he said that it will be announced in November's budget. This is simply a case of trying to milk the cow for as long as possible.
Salvatore Aquilina
Jun 7th 2008, 10:50
All I can hear is Brussels want to take Malta to court. Nice to be in the EU