Chamber of Commerce and Malta Employers Association both agree that there needs to be a national front against whatever can damage the local financial services sector.
Asked to comment on the effects by leaks such as Malta Files and the Panama Papers Chamber of Commerce President Frank Farrugia in comments to The Malta Independent, said that these leave tremendous effects on the local financial services sector.
“We have to forget we are in election mode and unite for a national front and address this issue head on. We need to act now, as fast as possible,” Mr Farrugia argued.
“Politicians have to take into account that the attacks on each other are being taken out of context. We need to act now. Two weeks is too long,” he said while insisting that the issue should be resolved before the end of the election campaign.
Malta Employers Association Director General Joe Farrugia believes it is no coincidence that Malta Files are coming out now, amid very serious allegations on the local financial services sector.
In comments to The Malta Independent, Mr Farrugia said that the favourable tax rates in Malta have been in place for more than 20 years so one cannot ignore the fact that these allegations are being revealed now.
“We are in the middle of hot political debate and controversies are the norm of the day. It is no coincidence that these are coming out now.”
The Malta Files are documents which show how Malta operates a tax system where companies pay the lowest tax in the EU and how our tiny island is being used as a base in Europe for tax evasion.
Mr Farrugia expressed his concern over such matter. “We, the social partners, the government and the Opposition have to work together with all the relevant stake holders to safeguard Malta’s financial services,” he said.
“We drew attention on Malta and such elements are only tarnishing our reputation. I ask what is the link between these files and the current controversies.”
He said that the most important thing is that the authorities do their best to contain the damage.
Addressing a press conference, Prime Minister Joseph Muscat said that there should be a united front for the country to face what he described as an “unprecedented attack” on the country’s financial services sector and taxation system. Dr Muscat said the government wanted to give importance to the issue. “We are not brushing things aside,” he said, “because we have nothing to be ashamed of.”