GRTU calls for immediate discussions following draft budgetary plan for 2015

Government must avoid the late unveiling of tax plans at all costs - GRTU 

In a statement released this afternoon regarding the draft budgetary plan for 2015, the General Retailers and Traders Union made clear that it considers the Eco Contribution tax as a factor affecting prices and competitiveness, together with VAT.

The union is unhappy that in the draft plan presented to the European Commission, the government commits itself to shift from direct to indirect taxation, but does not mention the mechanisms through with it will achieve this.

It also expressed its doubts as to the benefits of this move from direct to indirect taxation with regards to the Eco Contribution tax.

The GRTU welcomed the government’s commitment to refrain from increasing VAT, but added that it should be made clear that VAT is not the only tax element that effects prices and competitiveness.  “Many businesses are today forced to carry the burden on Eco Contribution, which is an unjust and anti-compeitive tax, and simply changing its name will not make it any more just or competitive”, said the union, adding that this will only continue to aggravate an “already preacarious situation.”

The union called on the government to avoid, “at all costs”, a situation where plans on these issues are unveiled “only once the Budget speech is read.”

It advised the Government to liaise with the Malta Council for Economic and Social Development in order to discuss the plans, and consult with social partners to ensure an agreement is reached, before any final announcement is made.