Voluntary organisations and their benefactors should receive preferential treatment from the taxman, the Malta Council for the Voluntary Sector has urged.
In its proposals to political parties, the MCVS said voluntary organisations should pay tax at preferential rates, while donations made to voluntary organisations with the blessing of the NGO Commissioner should be tax-deductible.
Such measures are standard practice in many Western countries, and have helped create a steady revenue stream for bodies reliant on grants, donations or fund-raisers.
“The Government must recognise that VOs are often dependent on the generosity of the public and assist them accordingly,” the MCVS said.
The MCVS proposals also call for voluntary organisations enrolled with the NGO commissioner to be exempt from paying VAT during fund-raising events and also exempt from customs duties related to the organisations’ work.