Finance minister: controversial tax scheme will not be repealed despite criticism

Finance Minister Clyde Caruana said that a tax scheme that exempts people from paying tax on property transfers to set off arrears will not be repealed, despite it receiving widespread criticism from stakeholders.

Speaking to the press after a conference on Thursday, Caruana said he had no problem debating the issue in parliament but that the measure would not be removed.

“I don't see the point of cancelling the scheme at this stage. There were also accusations that we are trying to do something that goes against FATF, greylisting, etc. That’s far from the truth,” Caruana said.

The Finance Minister said it was a measure intended to cover tax arrears as much as possible. “I have every intention to get as much as possible of these arrears into the government’s coffers,” Caruana said.  

The measure was introduced through a legal notice earlier this month.

It would allow those with tax arrears due by January 2021 to pay any taxes due on the transfer of property purchased before March 2021 against their arrears.

The Nationalist Party had said it would be tabling a motion in parliament to repeal legal notice. The party said it had “reservations” that were yet to be addressed even the legal notice would be in force from 8 November.