Four in jail over VAT

Four businessmen are in jail for failing to pay their VAT despite being given the chance to regularise their position.

Finance Minister Tonio Fenech and the Minister for Small Business, Jason Azzopardi denied claims by Labour leader Joseph Muscat that 120 businessmen were in jail over VAT payments.

They said three-quarters of those who had been imprisoned for not paying VAT regularised their position during the first few days of their jail term. This clearly showed that this was a deterrent and that justice was done even with those who would have paid their VAT, they added.

They accused Dr Muscat of encouraging law breakers and undermining the majority who paid their VAT on time.