The Malta Independent 26 July 2026, Sunday
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Down With the travel tax

Malta Independent Sunday, 7 August 2005, 00:00 Last update: about 22 years ago

When Malta joined the European Union, the government and the Nationalist Party had stated with pride that Maltese citizens would enjoy the four freedoms like all other European Union citizens. This included, among others, the free movement of people.

On 1 August, in what will probably be one of the most incredible political blunders of this legislature, the same party in government introduced an additional Lm10 tax on Maltese citizens and foreigners residing in Malta who want to go abroad for a holiday, business travel, health reasons etc. This brings the total departure tax paid to over Lm26 or around €60. That is, if one excludes the fuel surcharge which pushes up the ‘tax’ much further.

The government, in its short-sightedness has stated that this tax is a legitimate one and that the European Union does not have any jurisdiction on such a tax. Legally speaking, taxation does not fall under the jurisdiction of the EU, therefore the government is correct to argue in such a manner. But it is rather hypocritical to argue against an EU proposal to level a tax on airplane tickets to fund extra development aid.

It is incredible how one can have the cheek to argue that this would have a significant impact on Maltese citizens and our tourism industry and get away with it when Maltese citizens are already the highest taxed passengers in Europe.

According to recent media reports, the European Commission is investigating both the level and legal legitimacy of the increase in departure tax. It was reported that the Commission had asked the authorities to forward all legal texts justifying the increase after several complaints were submitted by Maltese citizens. This is indeed most welcome.

In all probability, the government will win the argument on a legal basis. But morally speaking, it treads on very shaky ground. Unlike most citizens of the European Union, someone leaving Malta has only two exit points, by air or by sea. Therefore, given the fact that Malta is an island with no access to the mainland, we are at a disadvantage when compared to the rest of the citizens in the European Union. While our fellow Europeans can choose to travel in trains, coaches, private transport and even have a choice of airports (and hence airport charges), we have to depart Malta by using either one airport or the sea passenger terminal.

Now, one would expect that, given the fact that there are no alternatives, Maltese citizens and foreigners alike would be encouraged to exercise their right of free movement by having the lowest possible taxes to compensate for the fact that we are so isolated from mainland Europe.

Especially since the government has used the argument that Malta is an island to ensure that we continue to receive structural funds for the new programming period. The disadvantages of being an island have been used time and again to illustrate the difficulties our companies face to compete in a globalised world.

But while the government tries to increase the competitiveness of our industry, does it make sense to burden businesses with the addition of travel costs? Any level of foreign direct investment, which the government is seeking to attract, would require an element of travelling and hence additional travel costs. Now the government should be the first to know what regular travel means and how hefty travel costs are.

Does it make sense to tax all and sundry because of government inefficiency collecting tax revenues from elsewhere, or for its incredible failure to curb so many unnecessary expenses?

We all remember the promises that our students would have the opportunity to study abroad, how EU membership would open new avenues for employees and their employers. All the benefits of the internal market were mentioned in a bid to secure a ‘yes’ vote in the referendum.

But now that this has been secured, the government seeks to increase revenue for its coffers irrespective of the fact that it is treading on one of the principles of the European Union. While this might not be illegal, the government has a lot of explaining to do to convince citizens that such a tax is justified and on what basis, especially since one cannot avoid it other than not travel. We have now reached a situation where you have to think twice before you go abroad.

The government should wake up to the fact that Malta is now a member of the European Union with all the advantages and disadvantages this may bring. It just seems the government has not accepted this fact yet. The decision taken by the government is so incredibly short-sighted that one hopes there were indeed no ulterior motives which led to such a decision.

What the government has effectively done, in a bid to increase revenue by just a few millions, is to deprive so many families of being able to afford to travel on holiday, at least if they don’t opt to go to Sicily by ferry, which is becoming more and more popular.

What is even more incredible is that a flight departing from Malta does not cost just Lm10 more for the same flight vice-versa. When checking on www.airmalta.com, a flight with the same base price excluding taxes (this is not always so as in many a case AirMalta sells cheaper flights to Malta than to outbound destinations) ends up costing the Maltese citizen Lm20 more after taxes are paid. Either my sums are wrong or else there is something incredibly wrong. (See table)

Do I get the feeling that we are being robbed not once, but twice!

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