MDA says budget has imposed heavy burdens on construction industry

The MDA said that while it “appreciates the difficulties government faces in its efforts to lower the deficit”, in the situation in which the property sales market is today, “it was not opportune to continue to increase costs for the construction industry through increases in excise duties on fuel and the new tax on cement.”

“When one considers also the exaggerated increases in MEPA tariffs announced recently, one cannot but conclude that government is imposing heavy financial burdens on the construction industry that will certainly lead to increased property prices to the detriment of potential property buyers,” MDA secretary Pierre Galea said.

The MDA said it was very worried with government’s plan to collect €10 million more during 2011 from the tax on documents for property transfers than it collected in 2010.

“In the current market climate this leads the association to conclude that government is going to increase its estimates on the value of property sold and apply the tax on a much higher value than that of the current market.

“In this manner it is going to tax unjustly the difference between the declared value and some imaginary value that does not reflect today’s reality,” Galea said.