Entrepreneurs are being jailed for not keeping up with the system of “legalised and institutionalised usury” employed by the government through the VAT Department, according to Labour leader Joseph Muscat.
“I was scandalised to hear there are 120 people in prison because of VAT,” he told supporters in San Ġwann yesterday, pointing out that each prisoner cost the country €60 daily.
Businessmen who owed VAT were being forced to pay fines and daily interests over and above the money due, plus a further interest compounding the total amount, he said.
And before paying off the VAT due, businesses must settle the interests and fines.
“No matter how much you pay, you still owe money. If someone were to lend money in this way, they would be arrested,” Dr Muscat said.
Meanwhile, the government’s weak energy policies created cash flow problems as businesses struggled to keep up with the price of electricity, water, gas, fuel and petrol.
“It’s a vicious circle. This uncoordinated system is killing enterprise. Businessmen are being turned into criminals,” he said, appealing to his supporters to stop eyeing entrepreneurs with suspicion and to acknowledge their importance in generating wealth and jobs.
Instead of “crucifying” owners of businesses and sending them to jail, ruining their families in the process, the government should encourage them to advance and expand.
Dr Muscat recalled last year’s divorce referendum, when, he said, the word “family” was abused throughout the campaign by all sides. “What would the Prime Minister say to these families?”
Dr Muscat referred to the case reported last week by The Times about a couple whose restaurant in Cospicua spent nearly 14 months blocked because of the Dock No. 1 project.
“The government’s disorganised leadership has ruined a family,” Dr Muscat said, adding that this was the type of arrogance people could not stand any longer.
Dr Muscat reiterated his “guarantee for youths” and promised that a Labour government would ensure everyone was treated fairly, through meritocracy, not depending on their surname or background.
Everyone had talents and capabilities that should be identified and maximised, he said, adding that it was only after Labour’s proposal that the Minister of Education woke up from her slumber to restart certain Employment and Training Corporation programmes.
Speaking about the parliamentary discussion on Malta’s Permanent Representative to the EU, Richard Cachia Caruana, Dr Muscat said the government originally criticised Labour for not understanding the Wikileaks cables. Now, it was lambasting Labour for believing the documents written by the US rather than the minutes written by Maltese officials.
He said this was rich coming from the party in government that believed what North Korea’s news agency said about Labour.
Dr Muscat reiterated that Labour would be the underdog in the next election because it was going against a 25-year-old establishment that had too much to lose and was already using fear tactics to scare people from voting Labour. Bills were being forgiven and permits were being issued to favour certain people, he said, but the clique was always getting smaller.
The Nationalist Party said in reaction that Dr Muscat was incapable of appreciating the government’s successes, remaining constantly negative and partisan and refusing to change. On education, Labour was a “guarantee of failure”, the PN added.