Only four people were in prison for failing to pay value added tax, the ministers for finance and small businesses said in a statement today.

Referring to a claim made by Labour leader Joseph Muscat last Sunday that 120 businessmen were in prison because of VAT, the ministers aid that the four people in prison for this reason had been given the opportunity to regularise their position but they failed to do so.

75% of the people sent to prison paid the fine in the first day or after the first few days of their sentence. This clearly showed that this was a deterrent and justice was done even with those who would have paid their VAT.

But Dr Muscat was defending those who did not pay the tax they would have collected from consumers, to the detriment of citizens and honest businessmen, the ministers charged.

They accused Dr Muscat of encouraging law breakers and undermining the majority of self-employed and businessmen who paid their VAT on time.