The ministry explained that market surveillance officers in the Consumer and Competition division not only closely monitor product prices, but also confirm that the products are fit for the consumer.
This exercise has been carried out in the Fair Trading Office since 1996 and these inspectors have been checking businesses since February to make sure that the reduction in prices, after the removal of levies on 1 May, are implemented, the ministry claimed.
Dr Sant also asked the government to give detailed information on every change in price of every product. The ministry said that this request was reminiscent of the time Malta was under the socialist government and the prices of toothpaste, corned beef and canned tuna were listed in parliament. In this day and age, people can choose products they can afford and get quality assurance.
The advantage of the reduction in prices due to the removal of levies on many products far outweighs any disadvantages caused by increases in VAT on other products, the statement continued.
Inflation in February was calculated at 1.7 per cent, a figure that compares well with other EU countries.
This, said the ministry, is much less than the average estimated during the 22 months the Labour Party was in power. The ministry noted that importers’ cash-flow has improved since they now do not pay VAT when their products arrive in Malta.
The Competitiveness and Communications Ministry said that all this shows that the Malta Labour Party has still not grasped the meaning of the word competitiveness and is out of touch with
reality.