Il-Ministeru tat-Turizmu f'laqgha ta' diskussjoni dwar is-sistema l-gdida ta' tassazzjoni

Il-Ministeru ghat-Turizmu flimkien mal-MHRA (Malta Hotels and Restaurants Association) u l-FATTA (Federation of Associations of Travel and Tourism Agents) zammu laqgha ta` diskussjoni u nformazzjoni dwar is-sistema gdida ta` taxxa li ddahlet flok il-VAT.

Il-Laqgha, li ghaliha kien hemm attendenza numeruza, qajmet diversi punti u mistoqsijiet li jirrigwardjaw il-ligi u kif din il-ligi tolqot lill-Lukandi, Ristoranti u l-Agenziji tal-Ivjaggar.

Il-Laqgha giet indirizzata mill-Ministru ghat-Turizmu, Karmenu Vella, Dr. Patrick Spiteri u John Abela.

Dawn li gejjin huma xi punti li tqajjmu mill-Ministru Karmenu Vella :

EXCISE TAX ON SERVICES

• Tourism has become now more than ever a major contributor to the national economy.

As such we believe that it should receive its due share of attention and should be treated as a national priority sector.

• Tourism services are highly price and VAT sensitive.
• By type of visitor - short haul tourists are more sensitive.

• By sector - visitor accomodation & restaurants /visitor attractions.
• Tourism sector was heavily penalised by the introduction of VAT in 1995

• VAT taxed for the first time ever all services.

• Tourism being a 100% service industry was heavily badly affected.

VAT rates of 10% and 15% were suddenly and not gradually introduced - these were the highest VAT rates compared to competing destinations. 12 out of 14 EU countries have a reduced VAT rate on Tourism. In spite of the fact that they have been trying for years to reduce it even further, they have not yet managed to achieve what we did in the last few months.

VAT indirectly had adverse affects not only on the tourism package but also on the general cost of living lowering the purchasing power of the individual tourist budget. The more paid on taxes, the less spent on extras in and out of the hotel.

At times the VAT charge had to be absorbed by the local service providers and was not passed onto the tour operator. This reduced the local profitability - main reason for the lowering of standards.

This adverse affect was one of the reasons why the government had promised to remove VAT. In fact now we can safely say that the tourism sector is one of the sectors which greatly benefitted from the VAT removal.

We believe that the removal of VAT and its replacement by the new ETS system means:

all above mentioned adversities were partly or wholly eliminated

• we should now have a stronger and a more competitive sector.
  
  

With the introduction of ETS system

HOTELIER

5% ETS instead of 10% or 15% VAT

Exempt on ETI and ETP on imported products as scheduled. Under VAT law he had to pay 15% and apply for a refund later.

On locally purchased goods on which ETI and ETP had been paid, he can receive a claw back of 12% on purchase price by applying to MDC.

On any construction works, a hotelier can claim back ETP on all the raw material used by applying to MDC,

RESTAURANTS

5% ETS instead of 10% and 15%.

Establishments giving a service and selling a product can apply two thresholds - Lm12000 on product sales and Lm6000 on services rendered.

5% ETS is only paid on service and not on products sold.

HANDLING AGENTS

5% ETS on their service content only.