PKF managing partner George Mangion accompanied by Tiziana Gauci recently presented a study on VAT which was compiled by PKF Malta with the collaboration of Professor Lino Sant to Finance Minister, Prof. Edward Scicluna. The objective of the study was to assist MHRA in their pre-budget discussions with the authorities for a revision of the VAT tariff.

Speaking at the presentation Mr Mangion said that “in our study we showed how members of MHRA will not reduce prices but plough back the extra revenue to renovate their assets thus creating job opportunities and improve the local product which is facing high competition.”

Mr Mangion added that “The study illustrated the positive results on value added to the industry and irrevocably showed the level of elasticity of demand given that the government reverses the 40% increase (from 5% to 7%) in VAT rate on accommodation.”