Answering questions from The Malta Independent, Parliamentary Secretary Edwin Vassallo said that the objective was included in response to requests from the private sector.

The proposal has never been discussed at senior government levels and should be placed in the context of the country’s economic state, Mr Vassallo said, adding that better VAT compliance could encourage the government to revise the tax rate.

“The fact that the proposal is there doesn’t mean that it will feature in the next budget... but there is nothing wrong with having it there and discussing it,” Mr Vassallo said with a grin.

Mr Vassallo launched the programme at a press conference at which he gave an overview of the 46 objectives planned for the year. “This is the fourth such plan,” he explained. “I have made it a point, since being sworn in for this office, to present such a programme a year in advance.”

The work plan aims to facilitate competitiveness, especially with the SME sector, he said. By the end of the period, a report can be drawn up, gauging the implementation and effectiveness of the objectives.

The implementation rate for a similar plan last year stood at 54 per cent. “The discussions that followed that report were very positive.

The experience gained from that process were included in these proposals. In order for the plan to work there is need for a combined effort from all stake-holders,” Mr Vassallo said.

Other objectives include the reassessment of VAT. Mr Vassallo said that talks in this respect were being held with the Parliamentary Secretary within the Finance Ministry Tonio Fenech.

The aim is to facilitate the process, possibly making it less bureaucratic, and improve compliance rates.

The Ta’ Qali crafts village also features in the objectives, with proposals to

develop it as a business incubation centre. Asked about the progress the project had made, Mr Vassallo said that the consultation process was now over, and the Lands Department would now be calling the tenants to sign the letter of intent.

When this process was completed, government would be issuing a tender for the project.

Government plans for private developers to construct the crafts village, labelled as zone one in the development plans presented to Mepa.

In return, the developers would be given a 63-year rent contract for an adjacent zone of 25 tumoli.

This area could be developed commercially but will have to include facilities for arts, sport and culture.