Updated: VAT refund promise 'corrupt' - Fenech - PL reaffirms promise
People queuing outside PL headquarters in March last year to join the court case for the VAT refund on registration tax.
Finance Minister Tonio Fenech said today that it was corrupt of the Labour Party to promise to refund VAT paid on vehicle registration tax, since the people were being promised something they were not entitled to, simply to win votes.
Speaking in Parliament, Mr Fenech said a European Court decision involving Poland had shown, once again, that Labour had no case when it claimed that VAT was wrongly charged in Malta on vehicles registered under the old system.
The government, Fenech insisted, had no real or moral obligation to refund that VAT, with amounted to some €50 million.
The court ruling, Mr Fenech said, had burst Labour's 'bubble'.
He asked if Labour would insist on its promise to refund the money, saying this would be doing so solely to win votes.
"Will Labour tax everyone in order to give this refund to a few when they are not entitled to it?" Mr Fenech asked.
LABOUR REAFFIRMS REFUNDS PROMISE
In a reaction, the Labour Party said the government was coming up with every excuse not to refund the money it had 'stolen'.
It said that the finance minister had confirmed that the Gonzi government was against refunding the VAT stolen from thousands of people who were charged VAT on their car registration. The people were being accused of participating in a corrupt act when they were seeking what was theirs.
The party said the minister was trying to shelter behind technicalities when the government should have refunded the money immediately.This was, after all, the same government which boasted that it had rectified anomalies which had existed in the registration system.
This was also the same government which found millions of euros before the elections, but did not find money for the families.
"The PL reaffirms its promise to return the stolen money if it is given the people's confidence at the next general elections," the party said.
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J MUSCAT
Jun 11th 2010, 12:53
@j farrugia
I cant understand your attitude towards the LABOUR PARTY ,remember if it was`nt for MR MINTOFF you would most probably be worst off, he was`nt perfect but what HE done for MALTA NO nationalist P, M. WILL EVER DO and stop being sad[ have a LIFE,.]
S. Camilleri
Jun 11th 2010, 12:06
Why doesn't Minister Fenech just shut up and do the right thing. If it were not illegal to charge this VAT then there would not have been any reason to 'fix' the law to rectify such an anomaly. Just like the Power Station issue, it seems inconsistency is becoming his trade mark
If I miss out a tax payment, I'll be hounded to pay my dues - and reasonably so - with no concern that my children may have to be "taxed" on their quality of life.
G. Frendo
Jun 11th 2010, 10:40
Hot on the heels of the very credible accusations and investigations on the Delimara power station, the Shipyard tender process and the EUPA fiasco Minister Tonio Fenech's mention of corruption rings rather hollow.
Philip Potts
Jun 10th 2010, 14:07
I am a guest in your country and i had to fork out a lot for my family car,(HAD I KNEW THIS BEFORE I WOULDN'T HAVE COME HERE IN THE FIRST PLACE) now my advice to you pal, cut the crap and pay up what its is due to me and many others like me including your own people. so don't diddley daddy sunshine come out clean like most eu member countries, why be stingy to the people.in a supposedly democractic and a republic.
Erick Brown
Jun 11th 2010, 00:00
Phil you should know by now that once you hand over money to the Maltese you might as well kiss it goodbye, as we shall never see it again, its a well known fact and people outside malta are getting wiser to the Maltese way of doing things. End of story. * NB.* I hope the next goverment will prove me and thousands of others who were illegally robbed eat my words.
Colin Grech
Jun 11th 2010, 15:09
@ Erick Brown
That's true Mr. Brown. Had the money been given to say a Brition or to the UK Govt, they would have refunded it immediately by cheque or bank transfer. Perhaps even better they would have rejected it in the first place.
Robert Agius
Jun 9th 2010, 22:18
Let me tell YOU what is CORRUPT Mr. Fenech - Imposing ILLEGAL taxes on citizens such as this and the airport departure tax. And to add insult to injury instead of removing the departure tax you lower it from 20 to 10% for another year before finally removing it. I wish the corruption coming from the PN administration ends there...
Oh! please people don't comment on PLs corruptions. Unlike most who tend to comment, I do not have RED or BLUE blinkers. PN has been in power for over 2 decades, it is them who have the DUTY to do something about it!!!!!!!!!!!!!!!!!!!!!
Anthony Mizzi
Jun 9th 2010, 19:00
Now we have it .
Now we know beyond the shadow of a coubt that Minister Tonio Fenech does not know the meaing of the word "CORRUPT" and have a faint suspicion that even Dr. fenech's colleagues do not know the meaniing of the word either.
No wonder the country is in the state it is!
cor·rupt (kə-rŭptˈ)
adjective
1.Marked by immorality and perversion; depraved.
2.Venal; dishonest: a corrupt mayor.
3.Containing errors or alterations, as a text: a corrupt translation.
4.Archaic Tainted; putrid.
1.To destroy or subvert the honesty or integrity of.
2.To ruin morally; pervert.
3.To taint; contaminate.
4.To cause to become rotten; spoil.
5.To change the original form of (a text, for example).
6.Computer Science To damage (data) in a file or on a disk
Joseph E Briffa
Jun 9th 2010, 18:38
@ C Ciantar...hozz fl-ilma!
c. camilleri
Jun 9th 2010, 18:28
Comparing our meagre complaints to that of other countries where stiff and painful measures had to be taken in order to put their economies right we can consider ourselves lucky.
Continue enjoy yourself and make merry because this Govt has stirred this nation away from the tragedies of other European Countries and only left petty thinks to complaint about.
kristinu borg
Jun 9th 2010, 17:41
oy oy kemm qedghin taghmlu da l`ageb kollhu, oy min fejn se jigu dawk il 50 million EASY OY. DAWK IL 50 MILLUN GEJJIN KOLLHA MIL ISTESS BORZA LI GEJJIN IT 80 MILLUN TAL PARLAMENT U UKOLL MIL 4% TA 200 MILLUN TAL POWER STATION,TRIEDU IZZJED,MILL FLUS LI HA IDAHHAL TA TAL LINJA U TAXIS IL BOJOD. DAWN HUMA FLUS TAGHNA LI SERAQ MIN FUQ IL FAMILJA LI XTRAT KAROZZA GHAL FAMILJA OK MHUX JAGUAR XTRAT MIN FUQ FLUS IL POPLU. PROSET HEY KEMM QEDGHIN TOHDHUA BI KBIRA.
Joseph E Briffa
Jun 9th 2010, 16:33
The leader of the oposition should know, if he sincerely doesn't, that what goes into the state coffers is NEVER refunded. To illustrate one example; when the late George Bonello Dupuis was Finance Minister in 1989, he reduced the maximum rate in the income tax structure from 65% to 35%. But did any future administration whether Labour or PN give a refund to anybody who had previously paid IT at the 65% rate? If I were Joseph I would try to come clean and stop trying to win votes by making ridiculous statements. At least one would get some credibility. Labour DOES KNOW that no government in the world gives refunds of revenue that was derived through legislation that was in vigore before changes were introduced. If would serve the party well if the party leadership stops trying to take the people for a ride.
martin saliba
Jun 9th 2010, 18:12
Kemm ghandek il memorja ghajiena jew seletiva. Mela insejt tal licenzji tas satellita ??? Lewel halasna u wara il EU galet li GPN tati il flus lura. U minn fejn gew dawn il flus sur Briffa ? Mux mil coffers tal gvern li jaghamel xjaghmel int tidrfrndih. Il bicca xoghol tat taxxa ta 65% malta ma kienitx fil EU dak iz zmien qallura ma tistax thalat il H mal B . Issa jekk int ragel ammeti li ghandek zball. Pero nidubita mit tnejn.
lgalea
Jun 9th 2010, 18:21
Joseph E Briffa The income tax was amended for future payments. The ILLEGAL TAX was collected by the PN Government when it should not have been collected. That is the difference.
C. Falzon
Jun 9th 2010, 16:11
OK.....And what about all the taxes being paid now for cars??? The price has remained the same as it was a few years ago with the 70% customs tax....just simply part of the customs tax was removed and named something else.....so explain to me what is considered corrupt again?
A.Zahra
Jun 9th 2010, 17:24
"If you vote for me I will refund any tax you have paid". That is corruption.
Anthony Mizzi
Jun 9th 2010, 19:05
"If you vote for me I will refund any tax that was illegally taken by the Gonzipn cashier in the guise of VAT on Registration tax, a tax on tax !
That is not corruption, that is putting things right for the consumer ! .
victor caruana
Jun 9th 2010, 15:46
Minister Fenech is sounding parroty when using the word corrupt....long shot.
By the way is he going to refund us the losses in our savings and wages for the devaluation of the euro by 25% against the dollar and 10% against the sterling. Devaluation is stealing the people of their earnings. apart from being followed by a higher cost of living. Do you all remember this.
the devaluation issue should be on the pl strategy....snoozing.
N Mercieca
Jun 9th 2010, 18:57
Well at least Mr Fenech doesnt have a direct say on the valuation on the euro... but i seem to remember someone that had suggested to devaluate the maltese lira by 10%.... wouldnt that be stealing also.. in your own twisted reasoning that is
Mark Galea
Jun 9th 2010, 15:33
X'intom tinkwetaw hbieb. Dalwaqt jaqa l-gvern, nivvotaw lkoll PL u jitla gvern sod bi 15,000 vot. Imbaghad niehdu lura l-VAT, il-kontijiet tad-dawl jorhsu, daqshekk duhhan tal-HFO u daqshekk qtugh tad-dawl. Hekk ser jigri ghax hekk qal il-Leader. Amen.
Joanne Said
Jun 9th 2010, 17:20
OHLOM
C. Farrugia
Jun 9th 2010, 15:31
I would just like to know from teh the EUR 50 million are comming? Something has to give so it will be either higher taxes or reduced benefits.
Anthony Formosa
Jun 9th 2010, 15:21
Will Labour tax everyone in order to give this refund to a few when they are not entitled to it?" Mr Fenech asked.
The funny thing is that the PN is accusing the PL because he wants to refund what was stolen by the PN, I remember this was one of the pre referendum propaganda that vehicle prices will reduce when Malta joins the EU, but in fact if it was not for the PL the VAT would never be removed and I believe that there are more things that we are paying against the EU law such as the TV license.
However Mr Fenech, at least those robbed should be exempt from paying tax for at least one year, and no one will have to burden the money what goes around comes around.
Miriam Gatt
Jun 9th 2010, 15:04
@ J. Farrugia
Ma niskanta xejn jekk int wiehed minn dawk li tidher fil-kju fir-ritratt.
J cachia
Jun 9th 2010, 15:01
The Polish case is quite similar to our so it is very unlikley that a refund will be given. Even if however a refund is ordered, people are very niave thinking that they will get 50 mil back. The refund would be given but a new tax will just come in operation. The government cannot afford to fork out 50.mil so the subject in question is quite irrelvent. In all possibilty if this happens it will happen after the next election. So LP would give a refund and then impose another tax to get the 50 mil back.
S. Camilleri
Jun 11th 2010, 12:09
If I get my €1700 that was extortioned from me when I bought my car, then I have no problem paying back a few 100, together with ALL THE POPULATION including the Minister to make up for the shortfall of €50 mil. I'll still be in the black
c.ciantar
Jun 9th 2010, 14:59
Mela il-ministru Fenech qieghed jitqammel mas dawk li bi dritt ghandhom jinataw lura
il-vat imhallsa zejda, izda halil l-gvern ta' GonziPN iroxx kemm Alla halaq flus lill-
dawk ta ma dwaru. Din hija veru "HIGHWAY ROBBERY". L'aqwa li ghadna il-weghda
li meta l-PL ikun fil-Gvern dawn li bi dritt huma taghna sejrin nohduhom lura; il-ministru
Fenech ma joqghodx jghid li din il-weghda hija "Vot Catching"
Joe Vella
Jun 9th 2010, 14:57
Ok, good enough Joseph Muscat and the PL. The only thing to follow is to tell us where you are going to get the 50 Million and/or where the cuts are going to be.
Muscat Pat
Jun 11th 2010, 14:20
Sa fl-ahhar tghallimt li il Partit Nazzjonalista haraq kollox; u gabna idd quddiem u ohra wara. Non e mai troppo tardi!
Caroline Scicluna
Jun 9th 2010, 14:51
Is Minister Fenech referring to the article on this newspaper dated 6th April 2008 "No reason to stop buying cars" Quote "The government is moving in the right direction, but people need to put their mind at rest and it has to say that all those who buy a car in 2008 will be exempted"....in fact i am one of the silly few who beleived the Minister and bought my car in August 2008 and today I have Euro3800 overpayment worth of credit from the malta transport authority...now is that the Minister playing fair??? i feel tricked to say the least as Euro3800 less on the purchase price would have made a huge difference for me. Thanks dear Minister
tony abela
Jun 9th 2010, 14:47
100 Million for Parlament and Opera house minus roof, €53 million for Public Bus Owners buy-back promise, €80Million for the Shibbuilding contract ( to ensure that the drydocks are cerified bankcrupt), €4 million commission for Power Station Extension, so on and so on. Aren't these taken from the honest men's tax???
Kieron O'connor
Jun 9th 2010, 14:45
If anything was learned from the debacle with Greece it is that you cannot wrongfully and wastefully spend public money buying votes forever without getting found out.
A quick poll on the political allegiance of public sector workers in Malta will reveal all!
Take the 50 million VAT and spend it on schooling, care for the sick and dieing and maybe fill a few pot holes.
The opposition must be useless if they cant see that the key to being ellected is the people seeing change coming and most importantly accountability.
Buying votes will only dig a deeper hole.
lgalea
Jun 9th 2010, 18:24
Kieron O'connor DO you agree with the government STEALING your money with ILLEGAL taxes Kieron?
J Mizzi
Jun 9th 2010, 14:43
If the VAT class action is still pending in three years' time, all a future PL government needs to do in order for the citizens to get back what is rightfully theirs is to retract all evidence brought by the PN government in the case instituted by the Labour Party.
A PL government will stop contesting the case in court, and the Judge would have no other option but to declare in favour of the plaintiffs.
D Miceli
Jun 9th 2010, 14:32
BHAS SOLTU - NILGHABU GHALL-GALLARIJA GOWZEF!! NILAQU FTIT LIL DAK U FTIT LILL-IEHOR BIEX FORSI XI DARBA JMISSNA L-GVERN!!
X'LIVELL BAXX TA' PL!!
J.Bonnici
Jun 9th 2010, 14:26
This is a tricky one for the Nationalist Party. It might very well decide the next election.
D. Mifsud
Jun 9th 2010, 14:25
Quoting from: http://www.timesofmalta.com/articles/view/20090522/local/labour-files-vat-court-case-at-a-cost-of-euro-800
"Dr Muscat said that if it lost its case in Malta, the PL was prepared to go to the European Court.". So now what is next Dr. Muscat?
Gianninu Saliba
Jun 9th 2010, 14:24
The PL must take the matter all the way to Brussels; just as they promised. It will be nice to see them loose the court case there as well. Yes, it will be nice to see them paying all the costs involved; or will they claim it from the ones who gave the PL the mandate to fight it in court and if need be in the European court as well? Admit it Joseph, this is another paprata of yours. For those who do not understand Maltese, the translation of of the word 'paprata', to put it politely and mildly, one would use the words "grave error".
victor rodenas
Jun 9th 2010, 14:24
If in the next election Labour will be in power and there will be people who really think that it is not right to be refunded, therefore I expect them not to apply for the refund.If they apply ,then they have no principles.
Joseph N Attard
Jun 9th 2010, 14:21
It would be very interesting to have the mentioned European Court Decision involving Poland explained in simple terms to us laymen, with particular emphasis on how relevant it is to the Maltese case. It would also be enlightening to know whether there were any other decisions by said Court involving other countries, and whether such decisions were more relevant to Malta. In any case, to most people's way of thinking, imposing a tax on another tax is always grossly unjust, unfair, unethical, etc,. Legality has little to do with it. The government must realize that it has very little suppost on this one. It should actively seek ways, not necessarily reimbursement, to satisfy those concerned, and to counter the promise of refunds by the PL.
M Tabone
Jun 9th 2010, 14:04
Ejja ha naghmlu qabzla ta’ kwalita' forsi dan il-pajjiz jkompli jipprogressa u jmantni KWAILTA’ TA’ HAJJA AHJAR.
PL should seek innovation if it wants to win new votes and not resorting to gimmicks and cheap politics that sounds good but create irreversible damages to taxpayers. The layperson is savvy enough to realize that there's no free lunch….. politicians should stop servicing party-clientele and venturing into stupid promises with our money.
If there was a case, I trust all would agree taking remedial action/s to correct financial damage/s but if there isn't any PL SHOULD STOP FIDDLING WITH PEOPLE'S SENTIMENTS.
N Cortis
Jun 9th 2010, 14:02
@ mr.Farrugia---Just to refresh your memory--- just one thing ----- Mr.Mintoff not LM 20 gave to the Maltese but to mention the Bonus only---that is LM 156 yearly (Lm 58 in June and LM 58 in December).
lgalea
Jun 9th 2010, 18:27
Dear Cortis, you forgot the 52 Saturdays every year because under the PN regimes Saturday was a working day, children allowance, equal wages to women, COLA, voting at 18 and many other goodies that the PN MPs voted against.
Deo Catania
Jun 9th 2010, 14:01
Statement moqziez iehor mill-Ministru Fenech, ma nafx kif ghandu l-wicc jigi jghid affarijiet bhal dawn, ikompli juri kemm ghandna gvern halliel. "The government, Fenech insisted, had no real or moral obligation to refund that VAT, with amounted to some €50 million." M'hemmx bzonn tghidilna int Fenech li dal-gvern m'ghandu ebda obligazzjoni morali, ilna li ndunajna li m'ghandux, dan gvern tal-klikka biss. insomma la ghadek bic-cans kompli dahhaq, xejn xejn ikollok biex timla CV forsi 3 snin ohra tidhol tahdem fl-entertainment int u shabek, tipo Aldo, Giovanni e Giacomo ta' Malta u hallu t-tmexxija tal-pajjiz f'idejn min hu kapaci. Statement bhal dan m'ghand Ministru li lanqas biss hu kapaci jiehu hsieb il-VAT Dept, hadd ma nesiha l-froga li saret ta.
Jeremy J Camilleri
Jun 9th 2010, 13:58
Isn't it ironic that the mInister views a pre election promise and a pending court case as corrupt, whilst he sees nothing wrong in jettisoning around on private planes with businessmen who could potentially benefit from his decisions?
dfarrugia
Jun 9th 2010, 13:45
it's the case where we say " il HMAR iwehel f denbu" viva l arsenal
B Sant
Jun 9th 2010, 13:39
calling VAT recompensation corrupt might be legitimate
but may i dare to call corrupt
the power station contract
ministers traveling with business ppl
etc etc
A Bezzina
Jun 9th 2010, 13:34
The tax was originally taken from the few and used for the benefit (sic) of everyone. Conversely, should it be shown that VAT on registration tax and registration tax itself (at least part of it) does not conform with the spirit of EU membership, and the principle of free movement of goods and the removal of direct and indirect barriers to the trade of goods (in this case motor vehicles), than yes, there is no moral problem with taxing everyone to repay the few who paid up in the first place.
There was no problem in taxing everyone in order to build the new Parliament building, and that amounts to over €65 million. The VAT on registration tax refund should have been settled first and that would have 'bought back the votes'. The few happen to be around 30% of taxpayers. In all probability they would have benefitted the least from the redistribution of the €50million paid.
M. Camilleri
Jun 9th 2010, 13:34
Is this a case of Pot calling the kettle black?
Justin Spiteri
Jun 9th 2010, 13:32
Hon. Tonio Fenech is right. Think about it, since when did someone return something he stole, out of pure righteousness, and not because of being forced by a court case against him?
What's lost is lost, forget it. It was a loophole in the law, in the government's favour. All one can do is find and exploit other loopholes, to recoup the loss in a licit way, without having any "real or moral" obligation to return the funds.
Albert Farrugia
Jun 9th 2010, 13:31
No, Minister. Taxes are the prerogative of the government first of all. A Labour government would take the political decision to legislate in such a way as to annull the levy of that tax, and a refund would have to follow. This government has become very good in shifting off what should be political decisions onto the various State Institutions, thus avoiding to be burdended with the political responsibility. I think that it is THIS approach which is twisted.
J Farrugia
Jun 9th 2010, 13:29
This is just like the case when Mintoff wanted to refund all the money given by the people to the Church. And the gullible people paid the Lm20 to the Land Registry to get NOTHING, ZILCH,. only empty promises.
Kevin Azzopardi
Jun 9th 2010, 14:50
You know what tonio fenech promised us before the election? a reduction in taxes..... you know the answer
B Mamo
Jun 9th 2010, 14:57
Mr. Farrugia.
2010 is the year we are in now. You always mention the 'heydays', the 'dark ages', the days of evil from the 1970s and 80s. I'm 26 years old, and my vote reflects today. I DON'T CARE WHAT HAPPENED THEN! Even if I did, how can anything bad be justified 'ghax ta qabli hekk ghamel!' That means you're no better than who was before you.
p.s. Almost anyone under the age of 30 and even various older don't give an owl's hoot what happened then. We are living in the present and the present is what matters. If you have unfinished business, then, unlucky mate!
p.p.s. This in NOTHING like the case when Mintoff wanted to refund all the money given by the people to the Church. Mela mohh ta pudina ghandek? This is payment of value added TAX when paying registration TAX. TAX ON TAX. where does tax go in in the story you have floating in your mind? OOh i get it. anything to mention your younger days when you were in the land of the living hell under the regime of emperor mintoff. Hux hekk?
Hallina my friend ghajjejt naqra comments tieghek.
john borg
Jun 9th 2010, 13:20
"Will Labour tax everyone in order to give this refund to a few when they are not entitled to it?" Mr Fenech asked.
X`GHANDU X JAQSAM, LOL , MELA MIN HALLAS IZ ZEJJED HALLSU GRATIS GHALL PATRIA!!!! JEKK IL PARLAMENT JIRRAGUNAW HEKK ALLURA MEXJIN FUQ STIL KOMMUNISTA.
c. Callus
Jun 9th 2010, 14:22
Sorry Mr. Borg.
Only the PL is saying that they paid EXTRA VAT. Mr Fenech is correct. In my opinion I (all of us) paid "extra" taxes under the various MLP Governments but by no means we should get our money back.
T Camilleri
Jun 9th 2010, 13:18
THE PN GOVERNMENT HAS ROBBED THE PEOPLE AND THE PL IS PROMISING THE PEOPLE THEIR MONEY ROBBED BY THE PN. ANYTHING WRONG WITH THAT MR FENECH?
P. Cassar
Jun 9th 2010, 14:09
No, you are wrong by assuming that the PL is correct.
T Camilleri
Jun 9th 2010, 18:31
It is you and MInister Fenech who are wrong P. Cassar. A tax on tax is illegal. If you paid it and do not want it back don't worry. Leave it for the country.
Victor Laiviera
Jun 9th 2010, 13:14
Minister Fenech referred to " people ... promised something which they were not entitled to, simply to win votes."
Was he, by any chance, referring to the 18 months salary paid to demoted ministers and parliamenteray secretaries for absolutely nothing, merely to keep them docile and allow Lawrence Gonzi to keep his seat as PM?
Or was he referring to the money paid to the disgruntled back-benchers appointed to manufactured pseudo-jobs so as not to rock the boat?
J Farrugia
Jun 9th 2010, 14:06
KMB paid thousands of liri for those 8,000 illegal workers who were employed days before the 1987 general election, and what for? for doing nothing at all. How about that for a labour scandal. And to add insult to injury Malta had to uinderwrite their futuile salaries for years and years on end. Thanks labour for milking me dry. Thanks Labour for putting me and my family in the poverty line. Just to garner some 8,000 extra votes for your dastardly party.
lgalea
Jun 9th 2010, 18:36
J Farrugia we have become used to your hatred for workers and the PL. KMB gave decency to those workers because he gave them the means to earn a living and not simply be a burden on the State by being paid social assistance. When you consider that the State was getting back NI contributions, Income Tax and the work from those people instead of simply dishing out social services money without getting anything back it all adds up positively both for the State, the workers and their families. But for you people who have nothing except hatred for the working class and the PL all you want to see are unemployed workers to exploit them.
Joe Grima
Jun 9th 2010, 19:33
Karmenu made a final act of mercy days before the 87 election. He put food on the table of the poorest of the poor and the lowest of the low. KMB may have made quite a few political mistakes, but the 8000 people to whom he returned their dignity and who could feed and clothe their children because of KMB's last act as Prime Minister, will forever remain indebted to him and to the Party he led