PN urges stakeholder consultation over tax reform

The Nationalist Party will be holding a series of stakeholder meetings on the proposed overhaul of Malta's tax regime, after claiming that government failed to consult with stakeholders in the process. 

Party spokesperson for finance Jerome Caruana Cilia insisted that such a decision to transform the tax regime should have only taken place after proper public consultation with stakeholders. 

"Unfortunately, neither the Opposition nor other stakeholders have not been consulted with. On such sensitive and crucial issues for our country, there was always close collaboration between government and Opposition," he said. 

The party will instead hold a series of consultation meetings with stakeholders in the field on its own initiative. 

Finance Minister Clyde Caruana revealed on Friday that a draft of the new tax regime has been concluded and is currently being tested by the tax authorities to ensure the government does not experience any shortfall in revenue.

He said the new regime has been drafted in consultation with all stakeholders and is a response to the signals Malta has been receiving from the European Commission and other foreign entities over its existing system.

The major overhaul marks a major policy shift and will be the first of its kind since the early 1990s when the foundations of Malta’s financial services industry were laid down.

Caruana Cilia explained that Malta's tax regime directly impacts the local economic model. "It also impacts foreign investment and most especially sectors like financial sectors and the gaming industries, among others."

"This is why the system adopted by government could potentially impact our jobs and other capacity to generate wealth." he said.