Tax institutions to merge

A merger of all tax collecting institutions, with the aim of combating tax evasion more effectively, will be proposed during the Budget speech on Monday.

Sources said this was one of the proposals discussed yesterday during the last meeting of the Malta Council for Economic and Social Development before Budget Day.

The social partners, as well as MCESD chairman Sonny Portelli and Finance Minister Tonio Fenech, hailed the meeting as a positive one, although they refused to divulge any details of the proposals discussed. They had agreed not to speak to the press at the end of the meeting.

But sources said the idea for the merger was one of the most important aspects of the Budget discussed yesterday, along with added support for small and medium enterprises to face the financial situation and the long-overdue strengthening of the Office of Fair Competition.

They said the merger of all tax collecting institutions, which include the Inland Revenue Department, the VAT Department and the Excise Duty Department, sought to better utilise resources once they formed part of a single institution with one database, one enforcement section and less duplication of work.

They said the measure was aimed at effectively tackling tax evasion.

During the meeting, Mr Fenech outlined the Budget's main priorities: employment, investment, education and training and social cohesion.

The number one priority was the creation of jobs, he told social partners.

Mr Fenech said the presentation included an overview of the country's current economic and financial situation and a forecast for next year.

The sources said the strengthening of the Office of Fair Competition was another important measure expected to be announced on Monday.

The idea was to overhaul the present office with the creation of a new agency that would have two sections: one for the proper investigation of claims and another for consumer protection, with education playing an important part of its terms of reference.

Another measure set to be announced on Monday is the revision of the registration tax for commercial vehicles, following on the measure for private cars announced in the last Budget.