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In what appears to be the first confirmation that the decision to introduce a withholding tax of 12 per cent is facing serious hurdles, Prime Minister and Minister of Finance Lawrence Gonzi told MaltaToday that he plans to revisit the withholding tax plan outlined in budget 2006.
Interviewed by MaltaToday, he said he was being advised about a number of anomalies such as the case of separated couples who had purchased property before their marriage.
He said that the matter would be ironed out in the coming weeks, not months.
The proposed withholding tax of 12 per cent has sent shockwaves in the property market, but it was welcomed by property inheritors.
Lawrence Gonzi’s withholding tax measure reforms completely the controversial inheritance tax regime introduced under the same administration by former finance minister John Dalli.
Talking earlier this week on Int X’Tahseb, John Dalli questioned the withholding tax measure announced in the budget. The Nationalist MP and former finance minister for ten years said it was unfair to treat people who had inherited property in the same way as those who had invested in property.
In the interview the Prime Minister expresses his concern about the state television station’s news service, and indicates that he considers electoral reform a priority.
Asked about his intention of calling John Dalli back into the Cabinet, the Prime Minister was non-committal, referring generically about the backbench.
“I am thinking about John, but not only about John,” he said. “But yes, John has great experience. Yes, I am always thinking about it.”
About the Xaghra l-Hamra Golf course, Gonzi reiterated his budget declaration that this should not happen at all costs, confirming a significant policy change on the issue.
See Interview |
