Increase in employment rates and reduced rates of taxation

Minister Prof. Edward Scicluna addressed the Malta Institute of Management – VAT and EU Conference on 19 October.

The minister said that any government should generate revenue through increased economic activity and not by increasing the taxation burden on individuals or by interfering into their individual’s choices.

It is for such reasons that over the last four years, this administration introduced measures and adopted policies which increased employment while at the same time reduced the rates of taxation.

Minister Scicluna also said that in order to continue to strengthen the institutions under the Finance Ministry a second permanent secretary has been appointed. He is now responsible for reforms and the department’s administration.

As part of the reform a Joint Enforcement Task Force was set up under the Ministry for Finance. It is intended to support the current entities’ efforts and spearhead additional prevention, investigation and enforcement measures.

It will nonetheless be expected to combine their full powers at law of the respective institutions they represent and take on additional ones so as to be better placed to push for the effective prosecution of offend- ers.

In conclusion, Minister Scicluna remarked that Malta has been active this year and gave its due contribution. He said that during the first semester of this year, Malta was responsible to preside over the Council meetings of the European Union.

In the field of VAT, Malta has dealt with three important dossiers from their inception, namely the Generalised Reverse Charge Mechanism – a proposal intended to provide a temporary measure to fight fraud; the Reduced rates on eBooks – a proposal intended to address the different rates between physical and digital products and the Modernising VAT for CrossBorder B2C e-commerce – a comprehensive package intended to modernise the VAT system.

Through hard work and dedication, Malta has managed to conclude technical discussions on the first two dossiers while it has managed to register significant progress on the ambitious third one.