Labour files VAT court case

The Labour Party this morning instituted a court case against the government on behalf of almost 18,000 people, demanding refunds on VAT paid on vehicle registration tax.

PL leader Joseph Muscat said the party believed consumers had a right to be refunded this 'illegal tax' as so described by EU Taxation Commissioner Laszlo Kovacs.

He recalled that the PL had first filed a judicial protest, to which the government had not replied. "The Prime Minister ignored the 18,000 people and chose not to reply," Dr Muscat said at a press conference outside the law courts.

Dr Muscat said that if it lost its case in Malta, the PL was prepared to go to the European Court. A Labour governemnt, he said, would be prepared to give a refund to all those who were charged VAT on their vehicle registration tax between 2004 and 2008, and not just the people who were party to this case.

Consumers had a right for this refund, in the same way as they deserved to be compensated for the bad state of the roads, Dr Muscat added.

He reiterated PL calls for the government to set up a Consumer Affairs Agency.