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Il-Proposta ewlenija tal-GRTU ghall-Budget 2008 hi revizjoni tal-bands tal-Income Tax. Ir-ricerki li ghamlet l-GRTU fost in-negozji u s-self-employed rapprezentati mill-GRTU kif ukoll fost l-konsumaturi li jixtru minghand il-hwienet u negozji, uriet li t-talba ewlenija ta’ dan is-settur vast hi li dawn in-nies jibqalhom aktar flus fil-but. Dan is-settur, li fieh hemm l-faxxa medja ta’ dawk li jahdmu, specjalment fejn il-koppja t-tnejn jahdmu, hi li wara li tinqata t-taxxa minn fuq dak li jaqilghu bhala paga jew qliegh, jibqalhom bizzejjed biex ilahhqu mal-kwalita’ ta’ hajja li jahdmu ghaliha. Din it-taxxa illum taghfas hafna fuq l-medja l-aktar wiesgha ta’ haddiema u self-employed qed ikollha mpatt negattiv fuq l-attivita kummercjali u fuq l-abilita tal-familji li jonqfu ghall- htigijiet li jixirqilhom.

 

Il-GRTU issostni li l-Gvern ma jistax jibqa ghaddej bil-kantaliena li kull sena jghid  li qed jilliberalizza t-taxxi fil- waqt li fl-ahhar tas-sena johrog kull darba li l-Gvern dahhal aktar minn fuq l-istess nies u l-gvern nefaq  aktar f’dik li hi nefqa pubblika. Il-klassi medja tal-icome earners thoss li l-budget deficit qed jinghalaq ghas-spejjez taghha u issa ghandhom dritt jistennew rimedju ghall-piz kbir li ilhom igorru.

 

Il-proposta ewlenija tal-GRTU ghalekk hi li l-income tax bands jitwessghu hekk:

 

Single tax computation

o       Less than Lm5,000 a year                       nil

o       Between Lm5,000 and Lm8,000             15%

o       Between Lm8,001 and Lm12,000           25%

o       More than Lm12,000                               35%

 

Couple tax computation

o       Less than Lm7,000                                  nil

o       Between Lm7,000 and Lm 10,000          15%

o       Between Lm10,001 and Lm15,000         25%

o       More than Lm15,000                               35%

 

Il-GRTU qed tistenna wkoll li z-zewg partiti politici ewlenin jintrabtu li fl-ewwel budget ta’ wara l-elezzjoni inehhu l-band ta’ 35% u jistabilixxu sistema mibnija fuq il-band ta’ 15% u ohra ta’ 25% bit-tax ceiling,000 li jkun ifisser li t-taxxa tibda tghodd biss ghall-min jaqla aktar minn Lm6,000 fis-sena. Il-GRTU issostni li l-Gvern illum qed idahhal bizzejjed mill-capital transfer tax, mill-Vat u mill-kontribuzzjonijiet socjali biex jibdel l-istruttura tat-taxxi u ma tibqghax aktar sistema li tikkastiga bi kbir lil min l-aktar li jistinka. It-tieni proposta ewlenija tal-GRTU hi li tkompli tkun riformata s-sistema tat-taxxa fuq l-propjeta biex ma jigrix li l-industrija tal-kostruzzjoni u tal-izvilupp taqa f’ricessjoni u fl-istess waqt ikun inkuraggut s-suq ta’ min jixtri l-propjeta b’cens li jkun jista jinfeda bl-anqas xkiel kif ukoll li jkun inkuraggut is-suq ghall-kiri tal-propjeta lill-Maltin. Il-proposta tal-GRTU hu ammirati biex kemm l-individwu li jrid jikri jew jixtri b’cens kif ukoll l-izviluppatur li jrid ihalli flusu nvestiti fil-propjeta ikollhom l-agevolazzjonijiet fiskali bizzejjed biex dawn is-swieq ikunu sostnuti. imtella ghall-Lm6

 

Il-GRTU resqet ukoll numru ta’ proposti ohra illi hargu lis-survey li hija zammet fost is-setturi rapprezentati mill-GRTU u li jorqtu setturi differenti tal-kummerc u l-produttivita.

 

GRTU budget proposals 2008

 

 

  1. Tax Reform

 

GRTU believes that the tax reform should move a step further in budget 2008. The current tax bands continue to castigate middle-income earners especially families and couples where both parents are employed on a full-time basis. GRTU strongly recommends a further widening of the tax bands as follows:

 

Single tax computation

o       Less than Lm5,000 a year                       nil

o       Between Lm5,000 and Lm8,000             15%

o       Between Lm8,001 and Lm12,000           25%

o       More than Lm12,000                               35%

 

Couple tax computation

o       Less than Lm7,000                                  nil

o       Between Lm7,000 and Lm 10,000          15%

o       Between Lm10,001 and Lm15,000         25%

o       More than Lm15,000                               35%

 

a.      Taxation of income of self-employed:

The system of a simple withholding tax on turnover adopted for farmers has given good results and GRTU now recommends that this scheme will be given as an option to other sectors of self-employed.

 

b.     Registered self-employed and other non-incorporated small business

These with a turn-over of less than Lm250, 000 should be given the option to opt for a 3% withholding tax and turnover or where turnover is not immediately calculatable on a quarterly payment basis.

 

c.      Employment of women:

GRTU recommends that spouses who are employed on a part-time basis with annual income not surpassing the minimum taxable income should pay a 5% tax deduction on the earned income to cover social contribution and all other tax compliance requirement as a final withholding tax. Spouses falling under this tax regime will enjoy the full pension/social services contributory scheme advantages.

 

 

  1. Excessive VAT burdens on restaurants and snack bars

 

GRTU is recommending that the rate of 18% VAT will be applicable only on the value added excluding labour costs and other non-vatable inputs

 

 

  1. Housing

 

Government should bring the necessary forms to lessen the negative impact of the slow-down in the construction and property development sector and simultaneously stimulate the market for renting and leasing (Ä‹ens) of property.  

 

GRTU’s recommendation that rent and lease (Ä‹ens) charges redeemable should be subject to a 5% final withholding tax and payments receivable by land owners concurrent with an extension of the non-taxable allowance to payers for the full amount of the annual payment made.

 

This scheme will encourage property developers to hold their funds in current developments where prices on the market are too high for buyers (especially first time buyers) to pay the full price outright. It will also create an incentive for developers not to transfer funds abroad while simultaneously encourage potential home owners to move on the market in spite of the current level of property prices.

 

 

  1. Waste management schemes- the polluter pays principle

 

GRTU is proposing a reform of the ECO-taxation with the aim of further encouraging collective waste management schemes. GRTU is moving along to manage waste management schemes for packaging, waste of electrical and electronic equipment and of end of life vehicle dismantling and recycling, as well as other similar needs. The current environment tax regime is both discriminatory in its selection of products falling under this tax regime and the mechanisms for refunding or removal or redirection of tax is cumbersome and often difficult to implement.

 

GRTU notes that government has introduced ECO Contribution in September 1984, both as an environmental obligation across the Board and also as a fiscal attribute. The introduction of ECO contribution was a haphazard move and its consultation process left much to be desired. Today a few years have passed and new environmental obligations place both the Importer / Producer with a legal obligation towards the environment and also tomorrow’s generations.

 

The GRTU effectively notes that EU legislation in the environmental sector is here to stay. A number of waste streams already carry a Directive in the form of making sure that the Producer or importer is responsible for end of life of these waste streams.

 

Amongst these one notes the following:

o       Waste Packaging Directive                                           LN 277 of 2006

o       Waste Electrical and Electronic Equipment                LN 63 of 2007

o       End of Life Vehicles Directive                                       LN 99 of 2004

 

The above legal notices transpose into Maltese law three very important EU Directives in respect to Waste Streams. It is as such now assumed that the importer / producer has a legal obligation towards complying with these regulations and also currently with the ECO Contribution.

 

The GRTU has gone in depth to discuss this matter with its members and whilst it is understood that extended producer responsibility is now being done in the form of ECO Contribution, it does not however remove the obligation of the producer under the above legal notices. As such, GRTU has set up a fully owned subsidiary, GREEN.MT with the aim of managing such non profit Compliance schemes on behalf of all the members who become part of its Scheme or Schemes.

 

In doing this GRTU has the following recommendations to government which should be included in the Budget for Fiscal Year 2008: 

 

a.      Any member of a Compliance Scheme should become exempt of any ECO Contribution (for that particular waste stream) on the day he joins a Compliance Scheme, which is authorized by MEPA (the competent Authority).

 

b.      As the number of products and items falling under the above Legal Notices, namely LN 277 of 2006 and LN 63 of 2007, are much more extensive then those currently covered under ECO Contribution, the government should make sure through an amendment to the current ECO Contribution Act by releasing anyone who is a member of an authorized Scheme or Schemes from any ECO Contribution, whilst reserving the absolute right to charge ECO Contribution to those importers or producers who are not part of a Scheme and who place on the market any goods covered by the Schedules of LN 277 of 2006 and LN 63 of 2007.

 

c.      In respect to EU Directive on End of Life Vehicles, which although transposed to Maltese law, is currently not being implemented. The GRTU would urge the government to consider decreasing Registration on imported vehicles and enforcing on importers to be part of a Compliance Scheme/s and paying a related sum to the Scheme/s for each vehicle placed on the market, with a view to making sure that once the vehicle is being disposed off or deregistered, it is done in an environmentally friendly manner at End of Life vehicles Facilities; according to LN 99 0f 2004.

 

The GRTU is aware that there are pending applications for End of Life Vehicles Facilities and as such urges government to take a political decision and as soon as possible authorize the operation of these facilities.

 

The GRTU firmly believes in taking initiatives towards a sustainable environment, but this can only happen with the good will of the government by taking up these matters and legislating where necessary, in order to obtain the much needed results in the environment sector.

 

 

  1. Localities

 

The expansion of economic activities away from the more important commercial and administrative sectors is a prime target of GRTU. We believe that with the expansion of telecommunications it is easier to encourage the transfer of back-office operation of government, push authorities and major enterprises to the localities. This will not only create additional job opportunities away from the major and traditional areas of employment, but also have an important impact on traffic, the environment and the family network.

 

It would serve particularly to boost the employment of women who have only a limi

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