Updated 6pm - Added Chamber of Commerce statement

Finance Minister Edward Scicluna today announced a new unit that will target tax dodgers through a joint effort between Inland Revenue, the VAT Department and Customs.

Prof. Scicluna likened the role of the new Joint Enforcement Taskforce to that of Italy’s Guardia di Finanza.

The Finance Minister said businesses had long complained about the influx of undeclared goods coming in to Malta, particularly through Sicily, and the new unit would seek to tackle this problem.

He said the unit held a soft launch over the past month and results were already showing.

Apart from border controls, the task force will also seek to crackdown on business who illegally employ workers.

Prof. Scicluna said the task force was not there to “scare people”, but rather to enforce laws and ensure that everyone operating in Malta paid their fair contribution.

“It is not asking much to ask people to pay their taxes and National Insurance contributions,” he said.

The Finance Minister said it was unfair that the government’s efforts towards a fairer distribution of wealth were undermined by those who did not pay their taxes.

Joseph Chetcuti, the director general for Customs, spoke of the need to strike a balance between more controls and the need to facilitate fair commerce.

Mr Chetcuti said there was the need to offer a level playing field for all businesses.

Customs had been successful in doing this, but one could never be 100 per cent satisfied, Mr Chetcuti said. 

Chamber of Commerce welcomes unit

In a statement, the Malta chamber of Commerce, Enterprise and Industry welcomed news that the unit was being set up, saying it had been "extremely vociferous" in the past on the need to tackle the black economy. 

"The Chamber is pleased that the authorities have understood the importance of the Chamber's arguments." 

It offered the government "all the help at its disposal" to ensure the project was successful.