PKF managing partner George Mangion and Tiziana Gauci recently presented a study on VAT, compiled by PKF Malta with the collaboration of Prof. Lino Sant.

The objective of the study was to help the Malta Hotels and Restaurants Association in its pre-budget discussions with the authorities for a revision of the VAT tariff.

Speaking at the presentation, Mr Mangion said: “In our study we showed how members of MHRA would not reduce prices but plough back the extra revenue to renovate their assets, thus creating job opportunities and improve the local product, which is facing high competition”.

Mr Mangion added that the study illustrated the positive results on value added to the industry and showed the level of elasticity of demand if the government were to reverse the 40 per cent increase (from five to seven per cent) in the VAT rate on accommodation.

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