[WATCH] Political parties will not be spared in tax collection drive, Finance Minister warns

Political parties will not be spared by government's efforts to step up the fight against tax evasion and collecting overdue arrears, Clyde Caruana said.

The Finance Minister said on Tuesday that the forthcoming budget will propose ways of addressing the issue of tax arrears.

When unveiling the pre-budget document, Caruana said no new taxes or tax hikes will be introduced in the foreseeable future but greater efforts will be made to clamp down on tax evasion and collect what is due.

"This has to be done for the benefit of the country... rest assured that I will give this issue its utmost importance," Caruana said when asked whether government's drive against tax evasion should start with the political parties themselves.

It recently came to light that the PL and PN owe more than €5 million in unpaid VAT, mostly accruing from their respective media organisations.

Recently, in an interview with Saviour Balzan, the director of the Financial Intelligence Analysis Unit, Kenneth Farrugia, also said that foreign companies registered in Malta will face heightened scrutiny for serious tax evasion.

Malta agreed with the FATF to implement a plan of action by January 2023 in response to the greylisting.

Caruana said the country had enough resources to avoid raising taxes but not all the money was making it into government coffers. He said the budget will include measures to combat tax evasion and propose a way forward to tackle tax overdues, including those by the political parties.