“Malta is not embarrassed that we use taxation as a competitive instrument, much like wages” Minister Edward Scicluna said whilst addressing the Business Europe Tax Policy Group on the priorities and objectives in the area for the Maltese presidency of the EU Council.
“When it comes to taxation, each member state should decide for themselves” he said.
He went on to say that it was unfair for the country to be labelled a tax haven when the country, which is small and has no resources, needed to be pragmatic and use it’s brain to attract investment.
He also said that the Maltese government has always tried to be transparent and open with the automatic exchange and availability of information on taxation.
Through reforms in the supply of labour the Maltese government was able to achieve sustainable growth. This has lead to strong investment and very low unemployment (with Malta being the second lowest in the EU).
“We make Malta easy for businesses to do business here."
He did go on to say that the country was not afraid to make changes to allow the continued growth of industries. He pointed towards the Igaming and financial services industries as examples of where the government would like to evolve.
On banks, the minister said that increased regulation, specifically in money-laundering, has lead to the industry to take less risks.
"In Malta, an Iranian student attending the University of Malta cannot open a bank account because of too many restrictions." He said.
The minister also included the capital markets union as part of the country’s presidency priorities, pointing towards the insolvency directive
The minister also called for a review of the regulations which were implemented over the previous eight years. He said that these were reflective of the economic crisis at the time, and they needed to be re-examined in light on a new economic reality.
"People are not satisfied with what we did in the past eight years, and this dissatisfaction is expressing itself in political votes. I hope we are honest and can acknowledge what we did wrong," he said.
Photos Jonathan Borg