In a live interview today with Times of Malta today, the Minister for Finance Clyde Caruana hailed the government’s ongoing tax collection efforts which are raising tax revenues and said that these revenues are expected to increase. The Minister said that tax evasion in Malta is decreasing substantially.
He also justified the depanlisation of tax evasion saying that this was not amnesty and it is allowing the government to collect more tax. The depanlisation of tax evasion has also benefitted close Labour Party associates.
Tax revenue is indeed increasing but so tax expenditure which is increasing at a faster pace. The Minister also expects continued government investment in infrastructure.
The Finance Minister has rebuffed demands to lower VAT rate on the catering industry to 7% and said that such a measure would cost the government €80 million. He also shot down the the proposals about a 4-day week and said that this would cost the government at least €360 million per year.
The Minister also denied that the government is bloated with excessive staff and said that government expenditure wouldn’t be cut significantly if customer care officials are fired. The Minister said that he himself has trimmed up to €100 million in government expenditure in two years with several expenditure reviews.
You can watch the full interview here.
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