VAT on vaccines for children had been levied since 2004, Health Parliamentary Secretary Joe Cassar said yesterday, shooting down claims made by the Labour leader that the government had introduced a new tax.

Although the government had negotiated and obtained a derogation for medicines to remain VAT free, five per cent VAT was applied to vaccines, he explained.

During a party activity last Friday, Labour leader Joseph Muscat said that a five per cent value added tax was being levied on injections.

Dr Muscat said it was unacceptable that VAT was being levied on medicinal products despite an exemption the government obtained from the EU.

However, when contacted yesterday Dr Cassar explained that there were certain requests that the EU would not budge upon during the pre-accession discussions in 2003. One of these was VAT on vaccines, he said.

"It is very strange that Dr Muscat decided to bring up this issue now, when he was an MEP for almost four years," Dr Cassar said. Dr Muscat was using a sensitive issue like health as a political ploy, he added.

Backed by VAT exemptions already in force in the UK and Ireland, Malta negotiated a derogation, which allowed it to maintain its zero-rating on food and medicines.