Chamber warns government against indirect taxation for Budget 2015

The Chamber of Commerce warns that more indirect taxation could spell an increase in excise duties. 

The Malta Chamber of Commerce said that a rise in indirect taxation could mean an increase in excise duties and other indirect taxes in place since the 2014 Budget.

Finance Minister Edward Scicluna released the Draft Budgetary Plan 2015 on Wednesday and said that the government is focused on shifting towards indirect taxation and easing the burden of direct taxation.

“Our concerns are justified given Malta’s poor track record in enforcing payment of indirect taxes through fair and effective market surveillance,” the Chamber said. “The compounding effect of excise taxes, eco-contribution, and VAT further adds to the concern of tax-abiding operators.”

The Chamber said that they will oppose any further increases in consumption taxes until the government can ensure a level playing-field for all, a fair share of tax revenue for the government and protection for consumers. They said that the government must introduce uniform procedures for the clearance of all cargo at ports and an effective market surveillance system.

“The proposed increase provides clear testimony of a practice often lamented about by the Malta Chamber whereby honest businesses are ultimately made to pay additional tax because the government is not able to enforce payment of tax by those who evade.” 

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