The government should shoulder its responsibilities and decrease the departure tax, Labour MEP Joseph Muscat (photo) said yesterday.
He said the European Commission is aware of the situation being created by the recent hike in departure tax imposed by the Maltese government and that these further increase Malta’s peripheral position.
In a letter to Joseph Muscat, European Commissioner for the Internal Market, Charlie McCreevy said he appreciated that “the new fiscal measure can be perceived as a barrier to travel to, and to provide and receive services in, other member states of the European Union. This would add to the peripheral geographical position of Malta.”
Nevertheless, no distinction is being made between European persons and companies on the basis on nationality and thus, there seems to be no room for intervention in the context of the principles established so far by the European Court of Justice, the Commission added.
The EC said that even though taxation issues are a matter for member states, the ECJ can scrutinise such provisions.
The Labour Member of the European Parliament has already replied to the Commission on the issues raised.
Mr Muscat said that this reply put more responsibility on the Maltese government. He appealed to the authorities to revise the departure tax in a way that it is more socially just, especially with regard to families, young people and pensioners.
“If government will be so hard-headed to stick to its position – and despite this, reply from the Commission – I will be seeking to take further action within the European institutions,” he said.
Mr Muscat said he had discussions and offered his assistance to organisations that are considering legal action on this issue.
Furthermore, he also started consultation with representatives and officials from other countries that are facing similar problems in order to come up with a coordinated effort.
“This is an uphill struggle to give concrete meaning to certain EU rights. We will be facing major obstacles. Nevertheless, we will make the necessary efforts since it is our duty to defend the rights of our citizens,” the MEP said.