The Malta Association of Small Shareholders (MASS) is a voluntary organisation that is working hard to ensure that small shareholders know what to look for when considering how to invest their hard- earned cash.

Throughout the last two years, it has been organising conferences with this aim and has managed to obtain the assistance of many well-known lecturers and economists who have voluntarily delivered lectures free of charge.

Besides educating shareholders, the aim of MASS is to ensure that the stock market will directly benefit from the prudent and intelligent purchasing of shares and this would mean that the shares of companies which are run best will gain most from share price increase.

Unfortunately, though shareholders risk their money when buying shares, they are being discriminated against because while people who put their money in deposit banks pay only 15 per cent withholding tax, dividends are charged at 35 per cent and shareholders will have to claim the difference if they fall in a lower tax bracket. Here again, they are being discriminated against because a couple will be charged at the rate of the highest paid partner.

Now it seems shareholders are again going to be discriminated against because while the highest income tax rate is being reduced for those earning up to €60,000 (in salary) from 35 to 25 per cent, income from dividends will still be taxed at the high rate of 35 per cent as per 2012 rates. The tax law does not distinguish between incomes.