Updated | PN says tax rebate for Community Chest Fund discriminates between charities

Finance minister, President announce tax rebates for charitable companies • Video Ray Attard

The government has launched a tax rebate for donations to the Malta Community Chest Fund, by companies.

The donations applicable have to be from business companies and of over €2,000.

Half the donation will count as a business expense, and qualify for the tax rebate.

Finance Minister Edward Scicluna, who announced the rebate at San Anton Palace with President of the Republic Marie Louise Coleiro Preca, who is the chairperson of the Malta Community Chest Fund, encouraged Maltese companies to take on a social responsibility towards people in need.

The MCCF organises the annual charity telethon L-Istrina during Christmas.

"There are plans to increase the tax rebate in future, but first we have to see this first effort in action," Scicluna said.

"The rebate was originally intended for Budget 2016, but Cabinet approved the measure now."

Asked how much tax would be rebated under the scheme, Scicluna refused to go into detail or any exact figures. "We've made our projections and it's modest."

Coleiro Preca urged businesses and people to take on social responsibility and donate to the Malta Community Chest Fund.

“A 2013 study shows that cancer incidents have doubled in the past 25 years and is projected to double again by 2030,” Coleiro Preca said. “Costs of cancer treatment have gone up too, and a single chemotherapy cycle can cost up to €11,000. Moreover, local and international studies show that people living in or next to poverty are the most likely to suffer from cancer.

“The Malta Community Chest helps these patients financially but it needs funding to be able to continue doing so. God forbid we ever reach a situation where we’ll have to choose which patients’ treatments we are going to fund.”

PN reaction

In a reaction, the PN dubbed the rebate a positive initiative, but MPs Claudette Buttigieg and shadow finance minister Tonio Fenech said they were disappointed that the measure discriminated between NGOs and institutions that depended on the generosity of benefactors and businesses “on a regular basis” not just at time of MCCF events.

“The PN believes that any tax rebate tied to donations should not be exclusively for one entity, but apply to all donations to NGOs and charitable institutions. We appeal to the government to review the scheme.”