Prime Minister Joseph Muscat said today that the government will continue to oppose financial transaction tax.

He was speaking during the Sixth International Insurance Conference held at the Hilton.

The EU Commission has introduced financial transaction tax and which is expected to raise about €57 billion euros a year. The proposal would apply a tax of 0.1 per cent on trading of stocks and bonds, with a 0.01 percent rate for derivatives contracts. Those minimum rates would apply throughout the 27-nation bloc.  

European governments are split over the merits of a transactions tax, with those disagreeing saying that an EU-only measure would drive business to other regions.

Dr Muscat said that the government will continue to maintain a close relationship with all stakeholders while also promoting innovation.

He noted that that Malta’s insurance industry was making international headway.

“The government will continue to support the insurance industry by investing in training for it workers to continue sharpening their skills.

“The government will continue to pursue tax policies that promote international activity,” he continued.

Turning to Malta’s economy, he said it was and still is in good shape.

“Malta stands tall in this regard as it did during the European financial crisis; the profile of Malta’s banking sector, which is strong and resilient, along with the fact that sovereign debt is funded by Maltese savings, shielded Malta from the crisis that hit a number of Member States,” Dr Muscat pointed out.

“Hadn’t it been for the above mentioned factors, it would have been disastrous for Malta,” he said.

Dr Muscat said that the economy has expanded by a third.

He said that the fact that the European Commission was forecasting further economic growth for Malta, is a good starting line for insurance companies.