Heavy financial burdens imposed on the construction industry in the Budget would work against buyers, according to the Council of the Malta Developers Association yesterday, since property prices would have to rise.

The association said the Budget measure came on the back of “exaggerated” increases in tariffs at the Malta Environment and Planning Authority.

In a statement, the association said it appreciated the difficulties faced by the government in attempting to lower the deficit, but considering the current state of the property market it was not opportune to increase costs for the construction industry through rises in excise duties on fuel and the new tax on cement.

Above all, the association said it is very worried with the government’s plan to collect €10 million more during 2011 from the tax on documents for property transfers than it collected in 2010. Due to the current market climate, the association believes the government is going to increase its estimates on the value of property sold and apply the tax on a much higher value than that of the current market.

“In this manner it is going to tax unjustly the difference between the declared value and some imaginary value that does not reflect today’s reality,” the association said.