Construction lobby welcomes withholding tax on transfer of property

The Malta Developers Association welcomed with satisfaction the measures announced in the 2015 Budget, which the lobby said “confirm that government is giving the property market its due importance.”

MDA also applauded government’s efforts to secure a level playing field through efforts aimed at avoiding abuse in taxation.

The association added that two measures announced by the finance minister on Monday  were among the proposals made by MDA.

These were the introduction of an 8% withholding tax on the transfer of property instead of the existing different systems of taxation and the extension of the concession to purchasing a property for the first time who will be exempt from paying stamp duty.

The MDA also noted that the cost of construction will be affected with an increase in expenses since the construction industry was not spared the increase in indirect taxation, especially with yet another increase in the excise duty on cement.