Chamber welcomes 'positive' PN budget proposals, concerned over VAT threshold increase

The Malta Chamber has welcomed the Opposition's 'positive' budget proposals but said it had reservations on the proposal to extend the VAT exempt bracket from €30,000 €60,000. 

It said that with the new EU VAT simplification rules from January 2025, all EU SMEs which do not surpass the local thresholds will be allowed to benefit from the same exemptions as local traders and businesses.

The Malta Chamber said it was satisfied that several measures it proposed were taken on board by the Opposition, following Bernard Grech’s response to the budget on Monday evening.

It noted primarily the measure to establish a specialised due diligence unit accessible to accountants and lawyers, and the reduction of VAT for all for all restaurant sales and hotel services to 7%.

“The Malta Chamber insists on the importance of a prudent approach in terms of budgetary proposal financing […] Any unsustainable measures that are proposed will ultimately be borne by the taxpayer and will render any deficit and debt targets unattainable,” said the Chamber.

The Chamber called for a mature discussion during the election period and for political consensus over fiscal targets and the restoration of Malta’s international reputation.