VAT on registration tax: Should any rights exist, they will be honoured - Gonzi
Prime Minister Lawrence Gonzi this morning referred to the controversy over VAT charged on vehicle registration tax, and said that the government's position was clear – if anybody had a right, the government would honour it down to the last cent.
Speaking at a political activity in Cospicua, Dr Gonzi added, however, that the legal advice which the government had been given was that it did not have any obligation to reimburse anyone.
Dr Gonzi said the government’s track record showed that it always respected the people’s rights. For example, when it was realised that the people had a right for refunds on what they paid on satellite antennae, it drew up a scheme and refunded the people concerned.
This issue involved taxpayers’ money, and the government’s duty was to ensure it was spent in a responsible and fair manner in the best interest of the people according to law.
The government had a duty to see if it was obliged to reimburse VAT on registration tax and the advice it had been given was that it did not.
He would rather abide by this advice, Dr Gonzi said, than the advice of those who some time ago said Malta should not join the EU and they were wrong. They also advised against euro adoption, and they were wrong.
Dr Gonzi said the government’s priority was to safeguard and create jobs. Indeed, while in Malta people were queuing about a VAT court case, abroad they were queueing for jobs.
However is somebody had a right for anything, that right would be honoured.
At the end of his speech Dr Gonzi said he was appealing to the social forces, as well as the opposition, to join forces to safeguard jobs. Such unity, he said, was as important as when the social partners formed one front with the governemnt before EU membership and euro adoption. Together, he said, they should work to defend jobs and make Malta a more attractive investment destination.
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Anthony A. Mifsud
Mar 17th 2009, 18:45
There is always a time. This time round dera Lawrence it's your time to Pay.
@ Joe Chircop, what makes you think that the money belong to state belongs to who?
It's your and mine dear friend.
Don't be fooled by the sliek bull, Tonio played a wild card and I think he screwed up big time.
Toni
joe chircop
Mar 17th 2009, 13:26
The PM stated that in the case of VAT on registration tax, should any rights exist it is good to be honoured. On the other hand, should it result from the courst decision that no rights exist, is it JUST and right to use public finances to reimburse the money same as well as the PL leader has actually declared to do when his party will be elected in Government?
Should the PL leader wants to reimburse the money in any case (no matter what the courts decision is), he can do so but with his own money and NOT with public finances. Furthermore, does his categorical statement imply that he is above court decisions or that court decisions are 'SOLELY' reserved to be honoured by the common citizens?!!!
Anna Ellul
Mar 17th 2009, 12:44
There is nothing wrong with a u-turn. Backtracking from one's own position shows a level of humility which is often absent in so many politicians. It shows you are listening and not just sticking to his own guns.
Now what about VAT on the surcharge we pay to Enemalta? isn't that wrong too?
J Oatmon
Mar 17th 2009, 12:15
An easy way to raise the cash to repay the illegal VAT payments to motorists ,would be for the police to stop every driver using a mobile phone and fine them Euro 30 on the spot.
This would also help reduce accidents substantially, and is far more effective and a far better plan than the 'speed camera' cash cows idea, which is totally discredited.
Keith Davis
Mar 17th 2009, 11:57
Dear Prime Minister, besides legal rights there are also moral rights.
Asking citizens to pay VAT on TAX is totally immoral !
Rodnick Abdilla
Mar 17th 2009, 00:31
Webbes rasek Gonz ha toqod tghamel il U TUrns :)
Michael Porter
Mar 16th 2009, 20:53
@C.Camilleri... Unfortunately We've been through a very bumpy ride since 8th March 2008!
M Micallef
Mar 16th 2009, 17:43
The major problem many people are forgetting here is the complete and utter lack of responsibility of the government and ministers. It is very irresponsible to say that the 50M Euros have to come out of the people's pockets again. The government's role is administrative and has to bear responsibility and liability for mismanaging income and expenditure of people's taxes. So the taxpayer, the government's employer, by the way, has the right of redress from the government. At the moment we have a very backward state of government, whereby we have absolutely no accountability and no justice regarding misdemeanor and mismanagement by government officials.
Until such time that the government is held liable for it's actions, these kind of abuses will continue to happen and we continue to live in a quasi monarchy.
Joe Cilia
Mar 16th 2009, 14:33
I still cannot understand the figure of Euro 50 Million, this means that since 2004 the government has received approx. 275,000,000 Euro registration tax and an additional 18% tax which make up the 50 Million i.e 5.4 million euro registration tax ( including vat per month)
I think someone is doing his homework wrong !!!!!
V.Micallef
Mar 16th 2009, 14:27
There's nothing you can do about, Larry, just pay up, chum!
james cremona
Mar 16th 2009, 12:12
Do you know the difference between the PN and the PL?
PN =Pay NOW
PL = Pay LATER
But under both of them, you have to pay.
P Zammit
Mar 16th 2009, 11:27
Hey, what about the Departure Tax? For a very long time that was also collected illegally! Shouldn't that be refunded as well?
r ferriggi
Mar 16th 2009, 10:32
nispera li il PN jifhem li tmur kif tmur din il kwistjoni tal Vat doppju,,,, il PN deher ikrah hafna specjalment bli statements u bir ras iebsa li wera.
iz zmien ( al PN u anke PL ) li jigu emnuti mil 'hardcore' taghhom jghidu xjghidu u jaghmlu xjaghmlu spicca.
u iz zmien tal weghdi ta qabel lelezjonijiet ukoll ( kemm PN u PL).
il poplu xeba'.
eddie bonello
Mar 15th 2009, 16:47
To all PN apologists
There are no IFS and BUTS .That which was stolen from the people has got to go back to the people and that's that. You can tell your dear PM that he made another gaffe and the longer he persists the bigger will be the shame. Just ask Joanna Drake and Roberta Triccas what the PN Gov. should have done in the first place. By the way, I don't think that these two persons are PL sympathisers..
Mark Cushcieri
Mar 15th 2009, 16:40
if these people get their money back,....and we get the electricity tariffs halved..then it is certainly thanks to joseph muscat who stands for people's rights...the tax on these cars was already paid in EU so malta cannot re tax the car. same with tariffs...enemalta is a monopoly but if they bought oil at a high price they should pay the consequence and not the people...while all the world is buying oil at 40 dollars per barrel...the enlightened enemalta bought theirs in big stock at probably twice the price.
Emanuel Debattista
Mar 15th 2009, 16:40
Seems as if Dr Gonzi has already shifted to a low gear in anticipation of a U-turn. unfortunately the arrogance and off-the-cuff statements of some of his know-it-all ministers together with some bad advice from some of his local and EU advisory staff is causing irreparable harm both to the Government and to the PN. Urgent and drastic action is needed to bring some people into line to preclude further embarrassment.
C.Camilleri
Mar 15th 2009, 16:23
Josep has a record of being on the wrong track; he was wrong about Europe, wrong about the Euro, wrong about Vat, wrong about Smart City, wrong about the funds from EU; etc etc etc. I am sure that he is wrong about this one too. It is pity that those people in the queue have not realised that they are being taken for a ride.
Keith Sammut
Mar 15th 2009, 16:07
@ Charles Micallef - Well said.
All of us should stop voting outright, election after election same bunch of people, they're taking us for a ride, both of them.
matthew ellul
Mar 15th 2009, 16:04
@ Martin Saliba
satellite antennas was a licence that's why they were refunded.. but this is a Tax, so I think that the government is not obliged to refund.
g.c.Forte
Mar 15th 2009, 15:49
Dear Prime Minister..........Stop playing with words and pay your dues. Another GAFFE;;; next the plastic bags. Is somebody counting the gaffes and " U " turns that this government done so far. Is there somebody interested to publish a 500 pages book about all gaffes and "U" turns.made by this government.
cassar i
Mar 15th 2009, 15:45
Quote Together, he said, they should work to defend jobs and make Malta a more attractive investment destination.
Political activity held at Cospicua...in front of the dockyard.
Quote 11months ago :- iggudikawni fuq dak li nghamel w mhux fuq dak li nghid.
Gerald Fenech
Mar 15th 2009, 14:19
Maybe the government should have a look at its legal advice team and give them a shakeup. that's what comes with treating people like morons - politicians should start realizing that times are changing at last.
Anthony Magri
Mar 15th 2009, 14:11
No you will not honour anything, you voted whole heartedly to the W. & E. charges because there is no law enforcing the Maltese families longing for moderation. In case of VAT registration, there will be a forced obligation to reimburse through a court sentence. So don't say you will reimburse whole heartedly, you will be compelled to do it. Don't try to show cowardice.
G.Schembri
Mar 15th 2009, 14:09
It's always Joseph Muscat who stand up to the Government for the rights of the people.
"Dr Gonzi said the government’s track record showed that it always respected the people’s rights. For example, when it was realised that the people had a right for refunds on what they paid on satellite antennae, it drew up a scheme and refunded the people concerned. "
Let's not forget that J.Muscat had brought the matter of the Satellite antennae in front of the EU. It seems that PN's only knowledge of EU and its laws is how to get their blue eyed boys good positions in Brussels.
Joe Cardona
Mar 15th 2009, 13:39
Not smelling another U TURN but it will be another U TURN as always was done by the PN.
Ask the Libyans, the Arabs and the Chinese.
M. Zammit
Mar 15th 2009, 13:23
Better a u-turn then to persist in a wrong! That would be foolishness. I wonder who the advisor was...? hmmm!
eddie bonello
Mar 15th 2009, 13:22
"Roberta Metsola Tedesco Triccas a Nationalist candidate for the European Parliament elections, said today that she disagreed with the government on the imposition of VAT on vehicle registration tax. She also urged the governemnt to 'give the money back'."
Its up to you now Roberta to prove that you truly believe in what you said and tell your dear PM not to play with words.
A Borg
Mar 15th 2009, 13:20
The Fiction:
“Dr Gonzi said the government’s track record showed that it always respected the people’s rights. For example, when it was realised that the people had a right for refunds on what they paid on satellite antennae, it drew up a scheme and refunded the people concerned.”
The Fact:
The government’s track record shows U-turns when the government had his back against the wall and is obliged, to save face, to refund the people concerned!
Jeremy Lanfranco
Mar 15th 2009, 13:20
@ Dr Gonzi,
Correct me if I'm wrong.
I bought a vehicle in July 2008 when the vehicle sales were dropping due to the uncertainty created about the new registration tariffs.
You put our mind at rest that if we go ahead and make the investment, we would be reimbursed or credited the extra payment we made for registration of the new vehicles.
Quote: Dr Gonzi added, however, that the legal advice which the government had been given was that it did not have any obligation to reimburse anyone.
Does that mean another broken promise???
Could anyone competent elaborate or answer this question?
Gianninu Saliba
Mar 15th 2009, 13:14
I cannot understand George Xuereb when he says that he is smelling another U-turn. The Prime Minister mentioned a couple... the EU and the Euro policies. The PL were very strongly against both joining the EU and the Euro adoption. Now, immature, inexperienced, incompetent and inefficient Joseph has changed his tune and did a policy (if not principle) U-turn. Here are another two... anti VAT and anti SmartCity. George if you want me to let you know of a few more U-turns, I will oblige. Just remember, Labour was against privatization as well.
louise vella
Mar 15th 2009, 12:47
You are right to call it a "political activity". Officially it was called a "djalogu" but there was no dialogue. There was a series of monologues. First the Prime Minister spoke. I rose to ask a question but I was told there was no room for questions. Then the presenter starting asking a prepared question to each of the speakers. At one time Dr Frank Psaila, a PN official, came to ask me what it was I wanted to ask. I told him I wanted to put a question on illegal immigration, a matter that Dr Gonzi had studiously avoided mentioning in his speech. He offered to fix me an appointment with the prime minister and I accepted the offer. However, I would like all to know that the so-called "djalogu" is no "djalogu" but a well-orchestrated public relations exercise.
IBorg
Mar 15th 2009, 12:42
Another PL bubble burst.
joseph cachia
Mar 15th 2009, 12:40
Onor Dr.Gonzi you are a Lawyer and surrounded by lawyers. Do you need anyone else ADVICE on this VAT matter.
As a LAWYER you know it was illegal.
Will you please disclose who advised the cabinet , so we won't hold it against you.
Thank You
P.Schembri
Mar 15th 2009, 12:32
Hmmmmmmmmmmm. Something's fishy here. Is Gonzi saying indirectly that the PL is right? I think another u-turn is about to happen.
L..Galea
Mar 15th 2009, 12:22
George Xuereb
You are right.
"....when it was realised that the people had a right for refunds on what they paid on satellite antennae, it drew up a scheme and refunded the people concerned."
S when is Gonezipn going to realize that the people have a rig to eb refunded the illegally paid VAT?
Any bets that it will be just before the EP elections?
Johnny Tanti
Mar 15th 2009, 12:21
@ George Xuereb
it's not a matter of a u-turn... it's a matter of honesty. If the court so decides, then so be it. But after all, this is taxpayers' money and not Dr Gonzi's.
as for u-turns, the PL is so much used to them that it sees them round each and every corner...
Grow Up!!!!!!!
N.Azzopardi
Mar 15th 2009, 12:16
@G.Xuereb
Which u-turns are you talking about ? Cause if you're talking about the LP u-turns there are so many. (non EU, non Euro, non Local Councils ) never ending.
J Spiteri
Mar 15th 2009, 12:12
The government seems to be working in a democratic and just way. Well done.
Emmanuel Vella
Mar 15th 2009, 12:11
If the U-Turn is for a good cause, why shouldn't we?
V Fenech
Mar 15th 2009, 12:11
The usual Gonzi preaches.... unfortunately nothing about stipends was mentioned. Fair enough Gonz!
Just admit that you are once again defeated. Consider how much you are alone in this issue and that even your party's officials are turning against you on this one too! Remember...
You had said that the Government had nothing to do with the Co-Cathedral quarry, actually the Government had members in the foundation pushing forward the project! We know how much you were afraid to let a vote in Parliament and what followed.....
You had said that Malta is in no recession, Robert Arrigo believes otherwise.
Your party's appointees in the Electoral Commission has voted against your proposals, you still don't accept that you aren't correct even on this issue.
You say that Joseph Muscat is wrong about the refund on the registration tax, still you contradicts yourself that this initiative will cost the country a hefty expense.
You aren't to be believed Dr Gonzi....you can be everything but surely not "serħan il-moħħ"
p.s. it was also Dr Muscat who urged you to refund the satellite antennae fees. At that time you and your Party used to repeat the pathetic song we're are hearing now!
I Abela
Mar 15th 2009, 12:09
Ladies and Gentleman.......please welcome.....Mr.......U-Turn.......Gonzi
martin saliba
Mar 15th 2009, 12:09
The satellite antenas refund was probably a few thousand Euros not 50M. There is no comparison Dr. Gonzi.
Henri Caruana
Mar 15th 2009, 12:07
Linking the reimbursement of VAT on car registration tax to other priorities such as the safeguarding and creation of jobs is inappropriate and unfair. That VAT should have never been collected from car buyers so, at this stage, invoking the issue of how best to spend taxpayers' money is nothing but political spin to justify the Robin Hood approach applied on this matter. Maltese citizens certainly did not vote in favour of EU membership to be treated as second class consumers when compared to their European counterparts.
Tony Mangion
Mar 15th 2009, 11:53
Dear Prime Minister, It seems that with the new deal you made before the election, to change the Cabinet, things remained just the same, if not worse. If I were you I'll call it a day and give Joseph a chance.
Charles Micallef
Mar 15th 2009, 11:53
These issues should never be allowed to happen and it makes me very angry that like every thing else on our blessed Islands such issues are allowed to turn into a political charade...
Why did we not get the issue right in the first instance?
Why did we allow for such issues along with the electricity bills
to turn into another political farce yet again?
When are we going to learn that all this does is make us look incompetent?
So can we please make this issue the last farce.
George Xuereb
Mar 15th 2009, 11:31
smelling another U-turn hmmmm