Property rent: Muscat to reduce final withholding tax to 15%
Joseph Muscat proposes to reopen consultation with stakeholders on the Permanent Resident Scheme.
16 January 2013, 12:00am
Miriam Dalli
Miriam Dalli
1 min read
Labour leader Joseph Muscat addressing a seminar organised by the Labour business forum.
Labour Party leader Joseph Muscat said that a future government would reduce the final withholding tax on rent from 35% to 15% and reopen consultation with stakeholders on the Permanent Resident Scheme.
Addressing a seminar organised by Labour's Business Forum on the construction and property sector, Muscat said these were two of the proposals the party intends to propose in the coming weeks.
On the final withholding tax, Muscat said the party's proposal was to incentivise the rent market. "This proposal will not only incentivise the market, but will see an increase in government revenue and a reduction in tax evasion," he said.
Muscat added that incentives given by the Nationalist government to those renting property to the Housing Authority set at a rate of 5% would be retained.
The second proposal unveiled by the Labour Party was to review the Permanent Resident Scheme.
Muscat said this commitment would be carried out in the shortest time possible. "We do not agree with how the PRS was reviewed and we intend to reopen consultation. We expect that adjusting the PRS will provide a fresh foreign injection to the property sector."
He described the two proposals as "an injection of courage in the property sector".
During the seminar, Muscat heard how the MEPA reform resulted in more bureaucratic problems for the client and an increase in tariffs.
He described the two proposals as "an injection of courage in the property sector" and said that his party's proposals would be over and above the incentives that already exist today.
Replying to questions raised by architects and property developers, Muscat said that the higher MEPA tariffs resulted in less income.
Muscat also said that in the coming weeks the PL would be discussing the dual role played by MEPA as an environment and planning authority.
Miriam Dalli joined MaltaToday.com.mt in 2010 becoming assistant editor f...
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WELL DONE MR MUSCAT. ANOTHER SOCIAL BENEFIT. THOSE WHO EARN MORE PAY LESS TAX. THAT IS HOW YOU ARE GOING TO BUILT A NEW MIDDLE CLASS???????????
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Maybe Dr Muscat better start by trying to find a way of how he can return those requisitioned (confiscated)properties that the MLP under the direction of Dom Mintoff seized from private owners to accommodate their constituents. My Dad lost this property in B'Kara in 1974 and the squatters are still living there and paying 185 euros a year rent which was established by the courts a few years back. Before that the MLP established the rent to be 19 Maltese Liri a year. According to the archaic laws that we have in Malta we cannot evict these squatters and we have to wait for a second generation to die or disappear before my family can get that property back. This was established by this Government and incompetent courts after the the last election. I turn 70 on Sunday and what chance do I have for me and my family to get this confiscated property back? The Courts of Human Rights agree that we should get these properties with added compensation but you have to be rich and be able to afford to engage a lawyer to fight this in court. Others have succeeded in doing that. I am only asking for what is rightfully mine so my children can enjoy this property left to me by my father.By the way I asked this government for help and they ignored me and my pleas like I don't exist. Yes Mr Said is aware of my plea but I am sure the Minister has a lot more on his plate so he passed it on to his aide which turned out to be a dud. Thank you for nothing Mr Chircop. Mr Busuttil please take note.
