Increase in gas prices necessary to meet international prices, says Gonzi.
Prime Minister Lawrence Gonzi, in an interview this morning with Radio 101, said that the prices of 62 medicines which target various health conditions have been cut, with price cuts varying from 20% and 50%.
Parliamentary secretary for consumer affairs Chris Said, entrusted with this role after this year’s cabinet shuffle, held various meetings with medicine importers and producers, to bring Malta’s medicine prices in line with the same prices of other EU member states.
“ This issue in consumer affairs is extremely important, as medicine prices directly impact the lives of many people with critical health conditions, “ Gonzi said.
The increase in gas prices announced earlier this week is “a decision which government needed to take, as a result of the constant international increase in gas prices,” Gonzi said. This has also brought about an increase in energy benefits, which aims to help families most in need, especially the elderly.
Out of a total of 150,000 families, 28,000 families will benefit from a 15 euro benefit on gas tanks. A percentage of these families, the elderly, are in further need of help and will therefore receive a benefit of 25 euros, Gonzi explained.
As for restaurants, Gonzi said “it makes better sense to incentivise tourism to increase their sales, rather than spend money on subsidising gas prices.”
Gonzi also talked about the investment received by ST microelectronics, which is a “positive sign showing us that foreign investors have faith in Malta.”
“The company, which employs around 1,300 people, is responsible for half of all Maltese exports, and investment is a clear indication of the capacity of our workers in this field,” Gonzi said.
In a report published by Eurostat this week on taxation trends in the EU, statistics show that the Maltese pay high VAT rates compared to other EU members. Gonzi added “this increase had to take place in 2003, where we increased VAT from 15% to 18% to sustain the health sector in Malta.”
“Malta today has the 4th cheapest VAT rate in the EU; I can assure you that in coming years, many EU countries that did not increase their taxes before will increase them now, and we will remain the same,” Gonzi said.