The Malta Developers Association has asked the Auditor General to investigate the new tariffs imposed by the planning authority to process construction applications.

“The MDA has reason to believe the new (Malta Environment and Planning Authority) tariff applicable since July was not based on the cost incurred by Mepa for the processing of development permits even though these tariffs are a charge for the processing of these applications,” the association told the Auditor in a letter.

The association asked the National Audit Office to establish the “real cost of processing development permit applications and how this compares with the new tariff structure” and whether there were proper checks to ensure the efficient processing of development permit applications.

In July, Mepa announced its new tariff structure, which saw fees for permit applications being changed to a rate per square metre, depending on the type of development.

For instance, under the old building levies, the permit to build one apartment – of any size – cost €162.79. Now, developers are being charged €1.24 per square metre, which would add up to €186 for 150 square-metre units.

Similarly, an application for a detached villa used to cost €2,300 per unit but will now be charged at €7.29 per square metre, which works out to €2,916 for a 400-square metre property, for instance.

However, the fee for an application to change a commercial area to a residential unit shot up from €162.79 to €595.

Mepa had justified the increases, saying the original tariffs remained unchanged since the planning authority was born in 1993, adding its income was not reflecting its expenditure.

The MDA said applicants for development permits should be charged “for the costs actually incurred in the processing of these permits”. It insisted that, since they were paying extra for the permits, developers expected a more efficient service that “ensures value for their money”.

When the fees were published, the opposition lambasted the rises, saying they were meant to cover for the government’s inefficiency.

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