GRTU requests lowering tax for SMEs in its Budget 2020 proposals

GRTU has officially presented its proposals for budget 2020 to the Prime Minister, Deputy Prime Minister and the Minister for Finance.

GRTU President Paul Abela congratulated Dr Muscat on the current economic achievements and he said that businesses played a very important role in this because they rose to the occasion. ‘With the current economic conditions, it is the right time for government to be less reliant on income through taxation and therefore the government should afford lowering the tax that businesses pay in order to help them be more competitive.’

Mr Abela said that competition both local and coming from abroad has increased dramatically and whilst there is more work, the cake is now being divided in much smaller pieces. Lowering the tax to 20% would help local businesses, the backbone of our economy, compete.

GRTU also asked for the government’s intervention to ensure that we know what goods are reaching our island by sea and that all dues are paid. Mr Abela confirmed that ‘there is rampant evasion of both VAT and Excise Tax’ and the more taxes we come up with the bigger the advantage the non-compliant businesses have. GRTU therefore calls on increased checks at entry point and the removal of the Excise Tax on locally purchased products.

GRTU encouraged the government to do more for family businesses. The set-up of the family business office needs to be strengthened in order to better reach family businesses and fulfil its function. GRTU also suggested for the tax on business transfers, including succession, should be eliminated.

Finally, GRTU requested incentives for self-employed in order to encourage them in topping up their pension prior to reaching their pensionable age. Paul Abela said that this is a segment where GRTU sees a number of issues emanating from lack of planning. Specific incentives need to be put in place in order to create the mind-shift that is necessary.

Also present for the meeting on behalf of the Government where Chief of Staff Keith Schembri and Louis Grech. Those accompanying GRTU President Paul Abela included GRTU CEO Abigail Mamo and executive council members Philip Fenech, Michael Galea and Marthese Micallef.