The Bill implementing the Budget measures was approved in committee stage yesterday with Finance Minister Edward Scicluna assuring the House that the government remained committed to delivering on all measures without exception.
The measures include the development of a mechanism to help evaluate properties with the least subjective intervention by the authorities or the owners’ architect.
Also included is the implementation of an optional 15 per cent tax on income derived from rent on residential properties, the introduction of a third pillar pension and other budget measures which were being rolled out from time to time.
One of the new clauses says that if income tax is not attached to the declaration form, the latter would still be accepted as having been sent.
Introducing a review of procedures to have a balance between deterrent and practicability, the minister said that administrative penalties were being removed, prompting Opposition spokesman Tonio Fenech to point out that if taxpayers postponed payment, this would have a negative effect on the government’s revenue. He called on the minister to increase the enforcement of tax collection to avoid such a situation.
Minister called on to increase enforcement of tax collection
A new clause introduces a tax-related notification which would not only be sent through registered mail but also published in the Government Gazette and in the local press. This would ensure that those who wished to avoid being contacted would still be served with the notice, thereby ensuring compliance.
Mr Fenech said that while he agreed in principle, caution must be exercised to ensure that there was no breach of privacy. He said that there should also be a consistent approach when this measure becomes applicable. Prof. Scicluna said that this would be a last resort and the details to be published could be discussed with the competent authorities.
Another new clause proposed that any payment submitted with the tax return within six months of the submission would go towards the settlement of the monies due as tax and not penalties. Mr Fenech said that the explanation given was more comforting than what he had understood at the time it had been presented during the budget.
He said that this was a form of six-month moratorium and did not tip the balance against the government.
Under the section amending the Social Security Act, the minister introduced a clause raising the ceiling taxable income of former British Service pensioners by €200 a year. No decision has yet been taken as to the removal of the ceiling but the possibility wason the cards.
Another clause would exempt disabled or elderly persons from the need to pay social service contributions. Incentives will be given to the unemployed to seek employment rather than rely exclusively on benefits. The concept of tapering of benefits was being applied in conjunction with the concept of making work pay.
Under another clause, a widow will receive the full pension, without any reductions, regardless of whether she earned more than the minimum wage or still had dependents. As from January 2014, divorced or separated persons who could prove the maintenance they were paying their former spouse would have that same sum deducted when it came to means testing.
Mr Fenech pointed out that this amendment had failed to take into consideration the Civil Unions Bill which was approved on Monday.
Social Policy Minister Michael Farrugia said the necessary amendments would be made once the Civil Unions Act was approved by the President and published.
Mr Fenech also asked about a number of budget measures which had been announced but not featured, with Prof. Scicluna replying that all measures would somehow be implemented.