Labour raises €8,000 in donations from 'free' car VAT initiative

"The donations were purely on a voluntary basis"

Labour collected around €8,000 in donations from people who signed up to join the party's court case against the government over VAT on car registration tax.

Last week, when 14,000 people flocked to the PL headquarters in Hamrun to register their name in the case, a perspex donation box was set up in the corridor on the way out.

The same box was put up again yesterday when a further 3,600 people registered their name. When contacted, a Labour spokesman insisted yesterday that the party "did not ask" for donations. "It was never our intention to do so. However, last Saturday, when thousands of people came to the Labour National Centre, a lot of people were asking whether they could make a donation in appreciation for this initiative.

"It was only then that the PL made the necessary arrangements so that whoever wanted to make a donation could do so. The donations were purely on a voluntary basis and the sum collected was €8,000," he said.

Meanwhile, the spokesman said it was "premature" at this stage to confirm the names of the lawyers forming the legal team that would be heading the court case.

However, Manuel Mallia, one of Malta's top criminal lawyers and president of the Used Vehicles Importers Association, is believed to form part of the team.

The Labour spokesman would not comment on Dr Mallia's participation but confirmed that he was present at the Labour HQ both yesterday and last week.

The PL's campaign was launched after EU Commissioner Laszlo Kovacs said VAT should not have been charged on car registration tax.

The government insisted that only the European Court could decide the issue.

Last Sunday, Prime Minister said that the government would be willing to reimburse money if it was within people's rights but insisted that he had legal advice to the contrary.

If the court case goes against the government, anybody who has bought a car since 2004, including those who have not been part of the court case, will be eligible for a refund. This would set the government back around €50 million.

Apart from the 17,600 who registered their name with the PL, 14 other individuals last week joined Alternattiva Demokratika in a similar court case.

Other people have taken the government to court individually.

ksansone@timesofmalta.com