From Mr J. P. Borg

I refer to Marisa Micallef’s article “A thumbs-up for the honest” (TMIS, 6 November). In her endeavours to commend the government, which appointed her chairperson of the Housing Authority, she miserably sought to give her enthusiastic approval to the 12 per cent withholding tax on the sale of property announced in the budget speech.

In my view this form of tax was one of a very few measures that irked the public.

To substantiate her implausible point, Marisa Micallef gave as an example a case where property bought for Lm10,000 was sold for Lm30,000 after only two months. This is an untrue assertion and, coming from the Chairperson of the Housing Authority, casts doubt on her credentials a hold such a responsible position..

In the example, on the Lm20,000 profit made, one was liable to pay a 35 per cent tax amounting to Lm7,000 your columnist stated. With the suggested 12 per cent withholding tax only Lm3,600 is due. Now, in the present financial situation does it make sense to reduce taxation on such speculation, if the example was indeed a practical one?

In reality, it is more likely that a gross profit of about 20 per cent is made within a year. However, the announced 12 per cent tax on the sale price will cut into all the gross profit of the small building contractor whereas the speculator, who makes over 50 per cent gross profits, ends up better off than with the previously applicable 35 per cent.

Whose bright idea was it that in a climate of justified heavy surcharge increases in water and electricity bills, the small investor/developer suffers an additional astronomical tax increase from 35 per cent to 100 per cent on his profits while powerful speculators are favoured with a reduction in tax payments?

Marisa Micallef, instead of being her employer’s lackey, should join those opposing such social injustice in order to persuade the government to recant on this measure.

Joseph P. Borg

SWIEQI