Labour leader Alfred Sant yesterday said that the Maltese people were paying about Lm240 million more in taxes than they used to collectively pay three years ago. This resulted in an increased cost of living, which is making it difficult for people to make ends meet.

Speaking at the Labour headquarters in Hamrun, Dr Sant said that the Nationalist government increased the tax burden by Lm60 million every year in the past three years. He blamed this increase on the country’s lack of competitiveness and the resultant dismissal of workers by big companies.

Referring to the laying off of workers at VF and Bortex, Dr Sant said that the MLP had warned about the eventuality years ago and was now committed to ensuring that the country remains competitive and large companies would not have to relocate their business.

Dr Sant said that the MLP was promising to reduce the water and electricity surcharge by half when it returns to power following the next general election. He said this measure would alleviate the financial burden families have had to cope with in recent months. Moreover, it would give families more spending power, which would then lead to more business and a better economy.

Referring to criticism levelled at the party’s plans with regard to the Lm25 million involved for this measure to work, Dr Sant said the reply was very simple. He said a new Labour government would cut down on wastage, will increase efficiency and will curb corruption. He said the MLP government would not look at faces and will be transparent, accountable and efficient.

During his speech, Dr Sant referred to the issue that cropped up during a recent television programme when Dr Sant and the Prime Minister did not agree on whether educational services are VAT-free.

He explained that people do not pay VAT on school fares but they pay 18 per cent VAT on items needed for schooling such as uniforms, computers and laboratory equipment. With regard to computers, the expense it greater because apart from paying VAT, customers also have to pay a contribution of 14 per cent eco-tax.

Dr Sant said that during a recent visit to a private school, he was told that the school authorities were planning to build an extension to the school and that they had to pay VAT on the construction and even on other things to equip the school with what was needed. He also explained how a former school head told him that 18 per cent of the school’s budget had to be “wasted” on VAT.

Even on the first house built or purchased, Dr Sant said, young couples have to pay thousands of liri in VAT. He said that when a developer builds a house and then sells it, the new price would include the 18 per cent VAT he would have paid.

He said that the Housing Authority has a scheme whereby people who build their first residence are given a Lm1,500 cash-back for singles and Lm3,000 for couples. However, he said, most of these funds will cover just the VAT which would have been paid.

Dr Sant also spoke about the government’s proposed project to enlarge the Malta College for Art, Science and Technology. He said that while the MLP agrees with this project, it does not agree with the idea that oil tanks will be just 200 metres away from the new extended college. He questioned why the oil tanks were placed so close when they could have been located elsewhere with the blessing of the local councils involved.

On the issue of the Ramla l-Hamra development, Dr Sant said that this monster project will ruin what the London Sunday Times described as one of the best beaches to visit.

Dr Sant said the people in Malta are thirsty for change and this will be forthcoming after the next general election. He said that in the meantime, the MLP will continue to reveal the truth and provide the nation with alternatives.

Also addressing yesterday’s political event, MLP Deputy Leader for Parliamentary Affairs Charles Mangion spoke about the Lm1,400 million debt that the country has and about the Lm80 million a year that have to be paid in interest alone.

He said families have to carry increased burdens because before the government introduces measures, it does not take into account the effect this would have on families and their standard of living.

On the other hand, MLP Deputy Leader for Party Affairs Michael Falzon spoke about the laying off of workers in the textile industry. He said that while the MLP understands that the world is changing, it is impossible that everyone starts to seek employment in the ICT

sector.