GRTU wants removal of audit requirements for micro-companies

The Malta Chamber of SMEs (GRTU) have called for a reduction of VAT to 7% on goods produced at the Malta Crafts Village, and to establish a national policy for quality testing and the upgrading of factories.

The GRTU announced a list of budgetary measures it was proposing for Budget 2014. They included demands for lower VAT rates in the buy-to-let sector, and a fixed income tax for rental income.

The GRTU said banks should be made to remove the percentage they charge for electronic payments, on both product price and VAT.

It also called for a night tariff and a decrease in commercial meter rental fees.

GRTU president Paul Abela said the GRTU wanted see more confidence and growth, and called for better support for small business through improvements in their working environment.

"The set of proposals presented are the result of intensive consultation with our members and research of the best practices that have proven very successful in other countries. GRTU, as the largest national representative of SMEs, feels that many of the schemes mentioned are the key to unlocking the full potential of SMEs and giving them aid where it really matters," Abela said.

One of the more controversial proposals was for the removal of audit requirements for micro-companies and non-trading companies, while at the same time the GRTU demanded beefed-up efforts on VAT and tax evasion.

The GRTU, which runs its own waste recycling company, said it wanted a revision of the eco-taxation system that levies a tax on companies importing packaging. The GRTU said it wanted an overhaul of the national policy on recovery of mixed waste and the setting-up of a Producer Responsibility Enforcement Committee to monitor the implementation and enforcement of the Packaging Waste Directive, WEEE, construction and demolition waste, end-of-life vehicles and batteries.

The Chamber had a variety of proposals on property, calling for incentives to have empty housing turned into back-office premises for businesses, establishing boutique hotels and B&Bs, granting titles of emphyteusis in lieu of lease to private enterprises over government-owned properties, the sale of government properties leased to the private sector, and the introduction of a property market value index.

The GRTU also called for an establishment of an 'Early Warning Foundation' where consultants offer free advice to enterprises in difficulty on the improvement of their management skills and helps them in their banking negotiations. "The foundation would help companies avoid bankruptcy and help those that have no other choice to extract themselves from impossible situations and live to fight another day," the GRTU said.

It also said that self-employed people should be able to receive their pension early where possible without the need to remain idle for one year. "On having access to pension, individuals should also be allowed to continue working without having to pay for NI."