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Matthew Vella
Officials from the European Commission have informed Alternattiva Demokratika that the increase in airport departure tax from Lm10 to Lm20 is not likely to be a problem under EU law.
According to AD, the party first raised the issue of departure tax in Malta in September, on the initiative of EU Affairs spokesperson Arnold Cassola, who is also the secretary-general of the European Green Party, when the tax was still Lm10. A probable ruling by the European Court of Justice this month will have a bearing on whether the Maltese departure tax conforms to European rules.
Officials from the Internal Market Commissioner Charlie McCreevy’s office have informed AD that they have passed over the dossier to various other commissioners possibly involved.
The Cabinet of Commissioner of Transport Jacques Barrot said the tax is not a problem under EU transport legislation, in particular since it is non-discriminatory and is levied equally on all passengers and all airlines.
Officials from Markos Kyprianou’s Cabinet, the Consumer Affairs Commissioner, have also confirmed that the issue cannot be tackled from the consumer perspective since it is a government-imposed tax, making it different if it were a price issue. This issue has also been forwarded to Taxation and Customs Union Commissioner Laszlo Kovacs, whose cabinet has been informed of the Maltese situation.
According to Arnold Cassola, the extent to which a tax which is non-discriminatory can be challenged under the Treaty is unclear.
“There will be a preliminary ruling of the European Court of Justice in 2005 on the taxation of GSM ‘pylons’ scheduled for later this month. This may shed some light on the question of whether taxes which are ‘excessive’ or disproportionate, may be contrary to the Treaty. The upcoming ruling of the European Court of Justice later this month could have a strong bearing on the Maltese departure tax issue,” Cassola said.
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