Marsaxlokk council wants cut from VAT paid to local shops

A budget proposal submitted by the Marsaxlokk local council is asking that a percentage of VAT collected from Marsaxlokk outlets be paid to the council.

The proposal, a sort of 'council tax' which would be hived off from VAT revenues payable to the central government, would assist the council in generating more revenues and create ownership for local businesses towards their locality, the council said.

"This link would help the economy by increasing commerce in the locality and increase government revenues," Marsaxlokk mayor Edric Micallef said.

The council is also proposing that it is allowed to claim back VAT on services it pays for.

"Our increasing expenses are eating into our capital expenditure. Claiming back our VAT would help us embark on infrastructural projects for our locality."