Cynthia Busuttil
Gonzi says government willing to uphold people's rights but...
The government was prepared to uphold people's rights but it had been advised it was not obliged to refund VAT on car registration tax, Prime Minister Lawrence Gonzi said yesterday.
"The government's position is clear: It will uphold people's rights to the last cent. But this is people's money and we are first in duty bound to establish whether this right exists," he told a crowd at Cospicua's Gavino Gulia Square.
The government, he said, had reimbursed people for licences paid on satellite antennas when it transpired they had the right to a refund.
On Saturday, about 14,000 people queued outside the Labour Party's headquarters in Ħamrun to sign up for a court case demanding a refund of VAT paid on their car registration tax.
"In other countries people queue up to find jobs. Let us remain focused on the economic challenges," Dr Gonzi said, adding that the tax money had been invested in a new hospital, new schools and new jobs.
Without saying who had advised the government it was not in duty bound to refund VAT on car registration tax, Dr Gonzi said he would rather heed that advice than that of someone who had, in the past, warned against EU membership and euro adoption.
When contacted, Finance Minister Tonio Fenech said that while people had every right to sign up for the court case, the government still felt it had not breached any law. He added that the government would respect the court's decision.
In a statement issued some hours later, Labour said the government had the political duty to reimburse the money without any delay. It described Dr Gonzi as "a headache" for consumers who have to go to court in order to fight for their rights.
In his address at Cospicua, Dr Gonzi spoke about agreements clinched with O-rings manufacturer Trelleborg Sealing Solutions, Methode Electronics and sink-maker Stainless Steel Products Ltd, three companies that had to go on a four-day week but were now returning to a normal working week.
He said it was now important for the government, the opposition, trade unions and the constituted bodies to work together to safeguard jobs at ST Microelectronics, to bring more investment and for SmartCity to open at the earliest.
"The country needs to remain focused on the most important things," he said, adding that his message to the Labour Party and to the social partners was to join forces in trying to attract jobs to Malta.
Dr Gonzi described the news that Malta would be able to keep foodstuffs and medicine free of VAT adding that workers would benefit, as a victory. This showed that Malta's voice in the EU was strong.
In a heartfelt speech received with resounding applause, Nationalist MEP candidate Vince Farrugia urged people not to be afraid to cross over to the Nationalist Party. "Cross over with me. Let us get together to ensure that the country comes first and before anything else. This means being with (Lawrence) Gonzi," he said.
"The Prime Minister had said that the party's door is always open. Let us show people a new future."
MEP candidate Frank Portelli highlighted the importance of the EU putting pressure on Libya to ease the problem of illegal immigration. He said the island was doing its utmost to address the problem and it was useless for foreigners to come to pontificate.
MEP candidate Edward Demicoli said that if Labour leader Joseph Muscat really believed in social justice, he should give back the party clubs which Labour had "stolen" from the people when it had seized their property to use as party clubs when Labour was in government.
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S Caruana
Mar 16th 2009, 23:01
@Joe Vella (Mellieha.)
According to the EU Commision 31/01/2008 IP/08/135 "The Commission understands that the car taxes levied in Austria, Malta and Finland, despite some minor or ancillary differences, are basically identical to the Danish one examined by the Court." taken from: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/135&format=HTML&aged=0&language=en&guiLanguage=en
So the EU...think so!
Paul Grech
Mar 16th 2009, 14:56
I suppose some of those claiming vat return on cars are the traders who had thier business vat forgiven
E Gatt
Mar 16th 2009, 11:57
Today, the application of VAT on registration fees is a grey area that will be decided by the courts. If people have the right to get refunded then the government will pay such refunds. Five years ago, the government was advised that there were no legal problems with charging VAT on registration fees. The government used this revenue to plan part of the budget of that year and the subsequent years. Had the government at the time expected this tax to be controversial or legally doubtful, the VAT income could have easily have replaced by let’s say an increase in registration fees. Dr Joseph Muscat now has the luxury of hindsight. Why didn’t his party organise the court cases at the time? Simple: nobody questioned the legality of this VAT charge at the time.
Joe Vella (Mellieha.)
Mar 16th 2009, 10:58
"In a statement issued some hours later, Labour said the government had the political duty to reimburse the money without any delay. It described Dr Gonzi as "a headache" for consumers who have to go to court in order to fight for their rights." When does politics of convenience comes ahead of moral duty and what is right? Only for Joseph Muscat and the PL. Who's rights have been taken away? The UE doesn't think so; if the UE did thinks so it would have started legal proceedings against Malta as it did with Denmark and Holland. Joseph Muscat way of doing politics is coming apparent to every body on a daily basis. Who said that the way of doing business have changed at the PL. Same wolves just dressed in sheep clothing.
Mary Mizzi
Mar 16th 2009, 10:31
Hope that Dr. Gonzi has not retained the same that counceled him on the licences paid on satellite antennas , as such advice would best go unheeded and would save the country quite a hassle and possible fines payable to the E.U. for non compliance to established E:U: directives on consumer rights over and above the refunding of what has already been illegally collected ...with interest. The long queues of Maltese consumers at the LP Headquarters , last Saturday should serve as an eyeopener to Dr. Gonzi and his Cashier Dr. Tonio Fenech unless their vision is also thwarthed by another long and silent queue of some other 6,000 waiting for a cataract operation , possibly amongst the queue mentioned by the Prime Minister that visited Mater Dei on pre open day
Egauci
Mar 16th 2009, 10:24
Yeah .. yeah... when it's convenient we call it people's money.. when we overspend stupidly on travel allowance budgets or perks.... then it's government money. and the funny thing is people still believe you.......
Mario De Bono
Mar 16th 2009, 09:23
It is rather clear that Mr David Sutton is speaking under the influence. Rather, it is undre the influence of those desperate persons who have a contract to install speed cameras and are going crazy because their investment has not borne fruit yet. And in this is the rub. David Sutton and the whole board of the MTA have been suborned. Every one of them is a yes man or woman, because the Minister brooks no opposition. The speed cameras and the whole 60KM conurdum is designed to squeeze the maximum amount of money possible from the motorist. Cynically, the Minister's advisers, all of who, seem to be driven around by drivers, dont care. They dont gve a damn, as long as they get their way, and they have a champion for that. The motivations for alll this remains unclear and highly suspicious. Traffic enforcement will remain suspect whilst regulated by private companies, because there are too many "old Boys" in the network. This morning it took me 45 minutes to drive from St Julians to Mriehel. If there is one single reason that is damaging the PN, it is this war on the motorist.