Malta should not be embarrassed for using taxation as competitive instrument – Minister Scicluna
“Malta is not embarrassed if we use taxation as a competitive instrument, much like wages,” Minister Edward Scicluna said yesterday whilst addressing the Business Europe Tax Policy Group on the priorities and objectives in the area for the Maltese presidency of the EU Council.
“When it comes to taxation, each member state should decide for themselves,” he said.
He went on to say that it was unfair for the country to be labelled a tax haven when the country, which is small and has no resources, needed to be pragmatic and use its brain to attract investment.
He added that the Maltese government has always tried to be transparent and open with the automatic exchange and availability of information on taxation.
Through reforms in the labour supply the Maltese government was able to achieve sustainable growth. This has led to strong investment and very low unemployment (with Malta being the second lowest in the EU).
“We make Malta easy for businesses to do business here.”
He added that the country was not afraid to make changes to allow the continued growth of industries. He pointed towards the Igaming and financial services industries as examples of where the government would like to evolve.
On banks, the minister said that increased regulation, specifically against money-laundering, has led the industry to take less risks. “In Malta, an Iranian student attending the University of Malta cannot open a bank account because of too many restrictions,” he said.
The minister also included the capital markets union as part of the country’s presidency priorities, especially with regards to the insolvency directive.
The minister also called for a review of the regulations which were implemented over the previous eight years. He said that these were reflective of the economic crisis at the time, and they needed to be reexamined in light on a new economic reality.
“People are not satisfied with what we did in the past eight years, and this dissatisfaction is expressing itself in political votes. I hope we are honest and can acknowledge what we did wrong,” he said.