The Chamber of Commerce has expressed concern over the uncertainty affecting the business community over the Government’s “unclear messages” to increase indirect taxation.

Signals coming from the authorities, including documents submitted by the Finance Ministry to the European Council, increased rather than dispelled this uncertainty, the chamber said while pointing out reassurances were not forthcoming at the last Malta Council for Economic and Social Development.

On the contrary, recent ambiguous communication from the Customs Department further “fuelled confusion and suspicion” among economic operators, it added.

It pointed out that operators were justified to feel “confusion” and “fear” given Malta’s poor track record in enforcing payment of indirect taxes through fair and effective market surveillance.

The prospect of raising the tax differential between Malta and neighbouring member states was unacceptable and made contraband items more attractive, to the detriment of Government revenue and tax compliant businesses.

The chamber strongly urged the Finance Ministry to carefully assess the situation before announcing any measure that could be counterproductive to Government and business in the Budget.