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Labour calls for lower VAT on tourism

The Labour Party yesterday criticised Prime Minister Lawrence Gonzi for failing to cut VAT on tourism services while other countries had already done so or were planning to.

Dr Gonzi was ignoring calls being made by the Malta Hotels and Restaurants Association and other operators in the sector, Labour tourism spokesman Marie Louise Coleiro Preca complained. This was the time to stimulate the tourism sector by making Malta more competitively priced, she added.

"Consumers are being more careful about spending their money and are going to cheaper destinations for their holidays, at the expense of our country," she said.

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Comments

Steven Brockwell (on 11/7/09)
this must be a Maltese thing since we seem to be the last country to put our prices down. however, always the first ones to put them up higher then any where else . this is just simply a case of the government ignoring the facts that Malta is very expensive when compared to other country's of the same standard. why do you think the PN lost by 35,000 votes. the people have spoken only no one is listening ?
Alfred Farrugia (on 10/7/09)
Doubts about the possibility that lower restaurant taxes will not be passed on to consumers are not limited solely to Malta. In France the same doubts were raised in a TV commentary and other media reports. http://www.eurotopics.net/en/presseschau/archiv/article/ARTICLE53102-VAT-reduction-to-help-French-gastronomy
Mario Camilleri (on 10/7/09)
I just cannot understand Mr Saliba!!! you know how much is Malta's debt? 3.7billion euros. no worries right. i just wonder if you have the magical solution to such a mess!!! i guess you will tell me it's all Labour's fault or because of the recession!!! i also wonder if you are admitting that the government raised the W&E because of the corporation's losses!!!! what about privatization. is to privatize the only magic formula in this country?MR Saliba always tries to justify the PN no matter what!!!
Mr Muscat from the others expects Dr J Muscat to commit himself to reduce the W&E tariffs in 4 yrs time!!!! are you joking?? Mr E muscat are you ready to commit yourself about something which might happen in 4 yrs time?? you cant 4 sure but you expect Dr Muscat to right?
emanuel muscatt (on 10/7/09)
Does this new Dr Muscat who forms part of the very much old labour know that in his speeches he is committing the labour party to things that he will find next to impossibe to implement if ever his party is in govt. He and louis grech already clashed with jason micallef as far as the water and electricity bills are concerned. Qed iwieghed hafna cejca.
Gianninu Saliba (on 10/7/09)
I must be very stupid. I just cannot understand Labour. One minute they complain that the deficit is going up and the next they want government to decrease taxes. One minute they want the government to reduce the W&E tarrifs and the next they say that the government should be held responsible for the corporation's losses. At one time they say that they have no problem with privatization and then they state that the government should not privatize enemalta. Now I understand what Joseph means by causing an earthquake... hawwadni ha nifmek.
Nigel Lawrence (on 10/7/09)
When one reads of these establishments not issuing VAT receipts anyway, what will be the difference of reducing the rate? IF a receipt is issued, and the reduced, the owners of these places will simply pocket the difference.

Remember these very same establishments have just put UP their prices by about 15%, so they seem to be not too bothered about the costs to tourism.

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