Maltese MEPs to pay less tax than voters
Malta's newly elected MEPs will make savings of around €10,000 per year in tax after the government decided that they should not be taxed at the rates imposed by their home country, The Sunday Times has learnt.
The government decided before the European Parliament election that MEPs should be taxed at the same rate as other Maltese appointees at EU institutions - to ensure they are all treated equally.
European Commissioner Joe Borg, judges Anthony Borg Barthet and Ena Cremona who sit on the European Court of Justice, and former minister Josef Bonnici who occupies Malta's post at the European Court of Auditors, currently pay EU taxes on their salaries.
However, these post-holders must live in Brussels whereas MEPs are able to commute between their home country and the Belgian capital.
Following the entrance into force of a new MEP statute next month, when the first session of the new EP legislature will be held in Strasbourg, Maltese MEPs will be paid a gross monthly salary of €7,665. This is a 540 per cent increase on the €1,295 monthly they used to receive under the previous legislature's terms.
In the past legislature, the five Maltese MEPs were subjected to the 35 per cent income tax on their salaries imposed by Malta's tax regime on higher earners.
However, the latest move means that just 22.2 per cent will be deducted from their salaries, and this will go straight into the EU's pocket rather than the local coffers.
The country will still make a saving as it will no longer be paying MEPs' salaries. They will instead be paid directly from the EU's budget.
Apart from their handsome new salary, MEPs will be receiving more than €300,000 each annually in allowances as subsistence for accommodation and meals, office management, travel and salaries for hiring personnel and consultants.
These allowances are non-taxable and some of them will be paid directly by the EP to the MEPs' hired staff in order to prevent abuse of the system.
Some EU member states decided against allowing their MEPs to pay taxes at EU rates. These include the UK, France, the Netherlands, Finland and Cyprus.
Belgium, Italy, Hungary and Lithuania have opted for the same system as Malta.
A spokesman for the EP said: "Member states had to choose what to do and some decided that they will still impose their own taxes on MEP salaries to (bring) the elected representatives (on a) par with their 'common' citizens."
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Sandro Cremona
Jun 22nd 2009, 12:17
I have never been so ashamed to be a Maltese citizen. I can never believe that in a situation like this our government of Gonzi PN's Id Zoda is to favour MEP's and member of Parliament only. No wonder so many refused to collect their vote thus not being part of this shameless organization. Our Salary increase was Euro4.75 fil gimgha and not a 540% increase. Mur ivvota Gahan!!.
philip pace
Jun 22nd 2009, 10:01
At Mount Olympus in Utopia there are many gods, demi gods and would be gods, They 'work hard*' in order to bring wealth to the millions of people that belong to such a land.
However, they prefer to make things perfect for themselves only where there is no stifling and unproductive bureaucracy as this is applied freely for the millions of citizens..
But at the same time none of the gods (etc) know how much money Utopia coffers contain as no audit account has been made for the last 14 years.
Yet at the same time Utopia penalises heavily the millions of its citizens when they are late to fill in that dreaded VAT form and watch the penalties grow from one month to another.
Now who shall penalise Utopia after failing to to do an audit account of the monies in and out for the last 14 years?
Who shall be held responsible?
*Some MEPS have been caught out by cameras when they sign in at Utopia's headquaters at around 7.30am only to go out from the same building and never to be seen again, coming back to sign out just in time.
Any explanation anyone?
Danika Vella
Jun 22nd 2009, 09:51
I find this very insulting to us common workers... I've read somewhere they only have 18 sittings per year... and they are getting a pay rise plus less tax... while here we are in a recession, many losing their jobs and others finding it hard to find jobs. and why should these 6 people be more special than us? is it not enough that they are pampered with so much money that they don't know what to do with them? (take Joseph... he could buy an Alfa and had the cheek to ask for money back from our taxes!
thanks EU... for giving more money to the rich and taking it from the poor!
J Spiteri
Jun 22nd 2009, 07:22
xma jigildux al poter umbad!!!!
D Camilleri
Jun 21st 2009, 19:51
more to spend next mep elections.
anything to remain in such a cushy job, while the plebeians pay more and more
tafu tisthu ???
C.ZARB
Jun 21st 2009, 17:02
I wonder why none of usual Do gooders have not yet mentioned Christian attitude on this yet. Is it according to Jesus teachings to pay less taxes when you are earning more?
Alexander Galea
Jun 21st 2009, 16:13
I am paid by a foreign company, I don't burden the government because I don't qualify for any social benefits and the foreign company pays a health insurance. I pay all my taxes and part of it goes to the EU so that MEP are paid hefty benefits uselessly and to insult me further, they get a tax reduction. George Orwell was very right when he said - All animals are equal but some animals are more equal than others -
Alex Tonna
Jun 21st 2009, 15:12
WHAT A SHAME !!
So now its not only a handsome pay and countless perks, but they also get to pay less taxes. How unfair on all the rest of the local population who voted them into their cushy jobs !!
I can just hear our Politicians:
"Don't worry .. .. . if we need any more taxes, we will squeeze our Middle and Lower class whenever we feel like !"
Bottom line is that the Rich are getting richer .. .. ..and the others .. .. .. .. well the others can go to .. .. .. !!!
If you analyse this ridiculous state of affairs, you realise that our Robin Hood has overturned his once noble gesture. He is now “Robbing from the Poor and to hand out to the Rich”
How pathetic can one get??
Joseph V. Grech
Jun 21st 2009, 14:47
I believe that this a matter for the Commissioner of Income Tax to decide. Pure and simple as that. There should be no involvement or pressure from either the P.M. cabinet, the Opposition or anybody. Taxpayers need to be treated the same way.
If these MEPs are subject to local Income Tax they need to pay at local rates. Taxpayers have every right to insist that the MEPs are not given any preferential treatment.
This matter needs to be put before our courts.
J Cilia Vincenti
Jun 21st 2009, 13:39
"In the past legislature, the five Maltese MEPs were subjected to the 35 per cent income tax on their salaries imposed by Malta's tax regime on higher earners."
High Earners??? But I have it in writing from one prominent MEP that his salary during the last legislature was only Lm6000!! Would anybody call that a high earner? Surely either the report is wrong or the MEP tried to mislead me. Felt pity for the chap at that time!!
Joseph V. Grech
Jun 21st 2009, 13:32
Allowing Malta's MEPs to be taxed at E.U. rates rather than at Maltese citizen rates is a grave injustice by the present P.N. administration led by Lawrence Gonzi.
''Some EU member states decided against allowing their MEPs to pay taxes at EU rates. These include the UK, France, the Netherlands, Finland and Cyprus''.
Could the P.M. explain WHY in Malta's case the government decided to lose the MUCH NEEDED revenue that would have resulted had we followed the example of the UK, France and other countries?
We have a serious recession, rising unemployment, a costly illegal immigration problem, tourism that is in danger of collapse, a Manufacturing production level that's about a third less what it was last year, a scandal at the VAT Department that resulted in the loss to the exchequer of God knows how many millions - AND IN THE FACE OF ALL THIS - GONZI PN ACTS IN THIS IRRESPONSIBLE MANNER! Honestly, Mr. Prime Minister, how can you expect people to believe that the country is being administered not just efficiently but JUSTLY?
Comments from the P.M., Joseph Muscat,and our MEPs - especially saintly Simon Busuttil and Louis Grech will be appreciated by the public.
Joshua Borg
Jun 21st 2009, 12:25
So MEPS with a €400,000 salary per year will pay less tax. Those with a wage of €19,500 will pay 35% of their earnings in taxes, and another 10% for national insurance purposes. Shame on you Gonzi for dealing the harshest blows to those who cannot afford to take them and reduce taxes for those with such a massive salary!
joe scerri
Jun 21st 2009, 11:43
When you invest in something you expect a return. 6 mep's at €400,000 is €2.4 million per annum. So over the next five years thats a staggering €12 million. Irrespective if this is paid by the local government or Brussels , the bottom line is, it is still taxpayers money. How many millions will our dear mep's be channeling towards Malta?