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.