Diesel and electricity rates in Malta are among the cheapest in Europe in spite of the country's dependence on oil, Infrastructure, Transport and Communications Minister Austin Gatt said.
Addressing a news conference yesterday to counter comments made by the Chamber for Small and Medium Enterprises - GRTU and Labour leader Joseph Muscat, Dr Gatt said that the 0.33 per cent excise rate the government levied on diesel was the European minimum. At 0.33 per cent, Malta had the second lowest rate with only Bulgaria being cheaper.
When it came to VAT on diesel, Malta's rate was the fifth cheapest. According to EU rules, one could not have a VAT rate on diesel that was different to the standard VAT rate.
Overall, he said, Malta had the cheapest diesel in Europe and had this been another country, Enemalta, the energy provider, would have been attacked for unfair trading because its profits only stood at two per cent.
Only 45 of 980 industrial entities and 93 of 40,000 commercial enterprises had a power correction system that saved them a lot of money, the minister added. It was true that this equipment cost money but it paid for itself in a short time, he said.
On electricity, the ministry said that according to the latest Eurostat data, published in December, the island was the cheapest in Europe for households consuming up to 2,500 kilowatts per hour. These amounted to 45 per cent of all households.
When it came to those consuming between 2,501 and 5,000 kilowatts per hour, Malta was the fourth cheapest, still well below the European average.
There were another 33 per cent of Maltese consumers in this band.
Regarding industrial bills, Malta was the sixth cheapest in the case of 31 per cent of its bills and matched the EU average with regard to another 53 per cent.
Referring to criticism on lack of consultation, the minister said that the surcharge formula was based on suggestions made by constituted bodies in 2005 and has not been changed since.
Reacting to Dr Gatt's comments, the MLP said that instead of commenting in a civil manner to suggestions by the MLP, the GRTU and the General Workers' Union, Dr Gatt acted in a partisan way.
Dr Gatt said that the price of the utilities was the cheapest in all European countries but he failed to compare the wages earned by the Maltese with those in other European countries, the MLP said.
Similarly, he failed to compare that part of the family income which went to pay for the utilities.
EU statistics showed that the burden of taxation in Malta had risen in recent years. Eurostat statistics also confirm that the Maltese spend more money on transport than Europeans in the other EU member states.
Moreover, the increases on LRP, on unleaded petrol and diesel left a greater impact than it did in other countries.
The EU statistics supplied by Dr Gatt showed that there are five EU countries that charged less VAT on diesel than that charged here.