Speaking yesterday in Isla (Senglea), Opposition Leader Alex Borg has pledged to reduced VAT for catering establishments from 15% to 7%. Restaurant owners in Malta have been requesting VAT tax relief due to inflationary and price pressures. The Minister for Finances Clyde Caruana is against the VAT exemption and said that lowering the rate to 7% would cost the government up to €80 million per year.
Maltese restaurant owners also claim they have an unfair advantage over rival restaurants owned by foreigners due to tax incentives for foreign businesses but the Minister for Finances also pledged to close this discrepancy and gap tax between local and foreign catering establishments.
Restaurant prices have risen along with food prices. Opposition Leader Alex Borg said that he will be lowering the VAT rate for catering establishments in the his first hundred days of government.
You can listen to his full speech here.
Newsroom
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