Government to clamp down on tax evasion – Finance Minister

The government is going to clamp down on tax evasion, Finance Minister Clyde Caruana said on Tuesday.

He was speaking to journalists after addressing a press conference during which the pre-budget document was presented.

Asked about this, the minister said: “I’ve been referring to the clamp down on tax evasion for months. We need to do this for the benefit of the entire nation. This government can honour its commitment not to increase taxation and not to introduce any new taxes in this budget, nor even in the foreseeable future, and we can do this as there are enough resources, but unfortunately they do not all go into our tax coffers.”

“There will be a clear direction given in terms of how we are going to do this in the budget. Of course, in the run up to the budget, I will provide more details and figures of what this is costing the country. I really want to deliver this message home and for everyone to understand, as in this way we can ensure that this country and its finances can be as strong as ever in the future.”

Asked about political party media and their tax issues, he said: “In terms of the media that pertains to political parties and the agreements they have, I will also deliver a message in the budget as to how we are going to tackle tax arrears and also as to the way forward. Rest assured that this issue will be given the utmost importance.”

The minister was also asked about the FATF’s grey listing. He said that the country passed the legislative process, as per Moneyval, and that the country is working to pass the two points which the FATF found issue with.

Asked about the increase in cost of living, he said that the government must look at this from a wider perspective. “The cost of living is rising as a result of the pandemic. The cost of freight, logistics, certain goods, increased due to the sudden shortage the world is experiencing.

The government can do little to address this, as these are things that are happening globally. But in this budget, in terms of increases we are going to give to pensioners, or the adjustments we are going to make to certain benefits, we will ensure that those increases will cushion the impact for the greater good of families and pensioners.”