Labour’s VAT proposal

In the story Leaders Tussle Over The Timing Of Tax Cuts (November 5) it was reported that Joseph Muscat, the Opposition leader, “rubbished the calculations made by me on November 2 of what Labour’s financial and economic proposals would cost” (The...

In the story Leaders Tussle Over The Timing Of Tax Cuts (November 5) it was reported that Joseph Muscat, the Opposition leader, “rubbished the calculations made by me on November 2 of what Labour’s financial and economic proposals would cost” (The Times, November 3).

Not quite. Dr Muscat has so far failed to contest any of the figures we aired, except one. We costed the loss of government revenue if VAT had to be reduced from 18 to 17 per cent. The Times reports the Opposition leader saying that this measure “was not a Labour Party proposal”. Really? Here is what Dr Muscat said on October 25, 2009: “Now that the EU has given us the chance, the 18 per cent VAT rate should be reduced.”

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