The Malta Independent 16 May 2024, Thursday
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Student Host families

Malta Independent Wednesday, 1 June 2005, 00:00 Last update: about 12 years ago

A lot has recently been said in the local papers with regards to tax due on monies earned through hosting foreign English language students. May I, as one of these so-called tax evaders, be allowed to express my opinion?

Firstly, the Tourism Ministry has over a number of years asked of the citizens of Malta to make the country the number one location for the teaching of English to foreign students.

1,686 licensed host families heeded the call and accepted total strangers into their homes with all the problems that this entails.

The reasons these families accepted the call is not only to make money, which is a pittance compared to the contributions that they make to the economy, but to help people in their quest for knowledge of a foreign language, to pass on their love and knowledge of Malta and, yes, even to help the ailing Maltese economy.

Host families are like front line ambassadors to Malta, given that the students are well looked after, they leave with very good impressions of Malta and the Maltese. This, in my own experience, has resulted in three of my old students returning back to Malta with their families, all booked into hotels.

If other host families have had the same result, it means that between us we could have generated an extra 20,000 plus tourists (based on a family of four returning) not to mention other contacts that students have made. It is also worth mentioning that many students who reside with host families also have their own families staying in Malta, normally in a hotel, while doing their courses. I wonder if the Tourism Minister is aware of this. I also wonder what the effects on the economy would be if host families were to stop hosting students?

The majority of host families are in the lower wage earning bracket, which would mean that any tax payable would be 15 per cent on all income received from students. The payment for one student during peak season is approximately Lm40 per week or Lm5.71 per day.

This would equate to a tax of Lm0.86 cents per student per day.

Now, according to Dr Francis Zammit Dimech, host families could keep a profit and loss account and deduct all expenses made. Can anyone tell me how I can give a student, breakfast, lunch pack and evening meal for less than Lm0.86 cents a day, not to mention two showers a day, a bed, cupboard, writing table, lights, electric fan, clean bedding and easy access to the family living area that includes television and radio?

On top of all this is the time spent with the students to help them with their homework or other problems, washing his/her personal clothing, collecting students from pick up points, showing them around the island, taking them to places of interest, advising them on various issues during there stay in Malta and making friends.

All this for Lm4.85 per day. Tell me, how much of it remains after all the service that is given?

It is for this reason that I, like many others, have always considered that money received from hosting students is tax free. Unlike other money earned where you have absolute power on how you use it, with money earned from students you have a commitment to the students and their wellbeing. A large part is spent on them.

If I am asked to pay back taxes on monies earned from student’s now or in the future, I will have no alternative but to stop hosting students.

I believe many others will do the same.

Leon Zawadzki.

Msida

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