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The Malta Chamber said it would be wrong for the Finance Minister to assume that all companies not declaring profits are evading tax. The chamber said this is due to the known reality that a number of these businesses are continuously navigating through rising costs, particularly through fast increasing labour, excessive bureaucracy, increased competition, and tight margins due to oversaturated markets. “While we fully recognise Government’s concerns, it is equally essential that those who are compliant, are not unfairly tarnished or overshadowed by those who evade their obligations”, it said. The reaction comes after Finance Minister Clyde Caruana, while being grilled on parliament’s Public Accounts Committee, questioned how 70% of companies in Malta declare losses or are at breakeven, despite continuing to expand their operations. However, the chamber said strongly supports the efforts to address gaps in instances of tax evasion, in order to safeguard national competitiveness and ensuring a fair level playing field. It called for an incentive-based approach to tax collection, which is structured in a way that supports businesses and self-employed individuals that fulfil their financial obligations efficiently. This is also aimed at improving cashflow for ethical operators, rewarding compliance, and contributing also to the constant insistence for a Public Procurement Reform which includes an effective white and black listing of businesses. The Malta Chamber has insisted on remaining committed to dialogue with government and stakeholders to implant the necessary and practical reforms which promote ethical conduct, further protecting law-abiding enterprises. “Malta’s continued prosperity depends on a transparent, just, and competitive business environment, on everyone, without exception, paying their fair share”, they concluded.
