Sharp drop in tax revenue from property sales

F Camilleri

Apr 30th 2009, 16:53

I am actually glad. Property prices sky rocketed some years ago, lots of contractor and banks made lots of $$$ at the deteriment of property seekers. Prices were on constant increase.
Property prices are still high comparing to some years ago. It is time to rectify this problem as property buyers are actually "crucified" (as per maltese expression") to pay-off the lifetime loans!!

Ron Farrugia

Apr 28th 2009, 20:09

Short and sweet, i am really not surprised at all, this was in the bag for a long time now, and its just a start.

Charles Sammut

Apr 28th 2009, 18:36

I guess that they are trying to make up the shortfall through traffic fines.

P. Schembri

Apr 28th 2009, 16:43

@Ramona Farrugia. What the government has been telling is that we'll be riding the storm. That there was nothing to worry about. That investors are queueing to come and set up shop here in Malta. That the Government has given itself a payrise of Euro290 monthly while we have Euro4.00.

What else Ramona? Who told you that PL is happy with the situation?

What the PN is doing is trying to deceive us. Projects worth millions galore! But from where is the money coming? That is the question. For every Euro Million the EU gives us, the Government must fork out Euro 250,000. But when the coffers are empty and bankrupt, from where will the money come from? If the Government's revenue has decreased this year!

Simon J. Aquilina

Apr 28th 2009, 15:15

@Ramona Farrugia
Less money is being collected not because the government is taxing less but rather because few people are buying property. I can’t understand if you write such comments here simply to put a bad image on PN or else because you live in some other country. Just in case it is the second; it is a well known fact for more than a year now that property is no longer selling as easy as before.

Steven Brockwell

Apr 28th 2009, 13:46

i guess there is a drop in all revenue? that's why you should not base on the future. past performance can not guarantee future performance a typical slogan by all banks and share entities is it not?

Ramona Farrugia

Apr 28th 2009, 13:41

@P. Schembri
@Gianni Xuereb
Don't any of you ever read the PL's reply to the Government's annual budget?
Don't they always say that the government is a bad boy because everytime the estimates show an increase of taxes being collected? Now they have the answer Gonzi has been telling them all along. The more taxes the government collects means that people are earning more. Are the PL happy now?

Malcolm Schembri

Apr 28th 2009, 13:18

I will not say that the goverment caused this problem but the writing has long been on the wall. So could I ask what has been done by the goverment to avoid/limit the mess that we are heading into?

Manuel Micallef

Apr 28th 2009, 12:25

To Paul Balzan:-

don't worry too much - nobody is blaming PN as yet;

But, may I remind you that when property and car sales were up - PN used to say - look this is a sign of prosperity and good governance (and I bet you never used to agree).
Now, could we not use the argument in reverse? of course with your permission....

P Pace Balzan

Apr 28th 2009, 12:02

The results are out of line with other statistics .
A bigger drop in the actual price of property is expected .
Prices will be similar to those of 2002.
The above will result in less taxes collected by the Gornment however this is no way related to a local political parties as some of your writers argue .
The buck is stopping .

P. Schembri

Apr 28th 2009, 11:56

@Ramona Farrugia. What are you saying? The article is saying that the Government is getting less tax on property because there is a lack of sales not because the Government decreased the tax!

Manuel Micallef

Apr 28th 2009, 11:43

To Ramona:-

it is not true that taxes have gone down - tax rates are still the same.
Prosperity has gone down - which means there is less sales, and hence less tax collected.

But if you as an inidvidual buy a property (or inherit one) you still have to pay the same!!

We are just living in a less prosper society - less money to go around, less trade and less tourist.

Gianni Xuereb

Apr 28th 2009, 11:37

@Ramona Farrugia: blue tinted glasses.

The reality: People, young couples, are either fleeing the island, finding a decent life abroad, or not buying propety at all. Why ? Because it's so damn expensive. No dear Ramona, the government is not taxing less, you are wrong here. If anything it is taxing more! Some people never learn.

Ramona Farrugia

Apr 28th 2009, 11:13

I presume that the PL is very pleased now, that the government has finally taxing the Maltese population less!

James Symons

Apr 28th 2009, 11:08

I agree with Mr Camilleri, the Government has allowed the property sector to rule the Island for decades, milking it at both ends of the cycle, those chickens are coming home to roost, the CGT is killing the market, and therefore tax receipts are spiralling downwards, what will the reaction be to this I wonder? Raise the tax again, or kick start the market by actually reducing a Tax? I don't think so.

S. Camilleri

Apr 28th 2009, 10:35

That's what comes from being Greedy. Property Sales Taxes have been some of the major cause of price inflation in recent years, especially with the 12% flat rate. Any property bought is immediately 12% more expensive. Would anyone try to sell without at least recovering this amount? It would be much better to reduce this significantly and replace by a hoarding tax.