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MT 23 November 2014

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maltatoday, SUNDAY, 23 NOVEMBER 2014 10 News TIM DIACONO THERE does not appear to be full consensus amongst wine produc- ers over the introduction of a new wine tax as announced in last week's Budget 2015 speech. Wine, the only alcohol that has never been taxed in Malta, will now be subject to 20c tax per litre. The government is expected to reap around €2 million through this new tax. "This new tax is a knock-out to the local wine industry," George Deli- cata, owner of Emmanuel Delicata Winemaker Ltd said. "17 countries in Europe, including wine-producing Mediterranean countries like Spain, Portugal, Italy, Greece and Cyprus, do not have a tax on wine. Most of the countries that do tax wine aren't even wine-producing countries. For example, while Ireland imposes a high tax on wine, it is a beer-produc- ing country and imposes a low tax on beer." "This new tax will affect the pri- mary agro-producers, the Maltese farmers, our vineyards alone employ around 300 farmers" Delicata said. "It will also harm tourism." "It would have made more sense if the tax was imposed on spirits that aren't produced in Malta." Delicata added that this new tax will deal a further blow to the local wine industry, following the lifting of levies of foreign wines following Malta's accession to the European Union in 2003.] "If the cost of wine is too high, peo- ple will stop buying it," Joseph Car- dona from Ta' Fokkli Estates said. "Once you add a tax, you add a cost," a member from the Cauchi family who owns San Niklaw Estates said. "I wish good luck to the wine producers who are saying that they won't be affected by this new tax." Anthony Hili, manager of Tal- Massar Winery, believes that this new tax will only harm the produc- ers of cheap wine. "Cheap wine doesn't have a high profit margin," Hili said. "While the tax percentage on one litre of 5 euro wine will be around 7%, it will only be around 1% per litre of 20 euro wine." However, he said that he doesn't know the details of the tax yet and hopes that it will only apply to al- ready-bottled wine. Ta' Mena managing director Joseph Spiteri shares similar views. "This new tax will only affect cheap wine and will not affect us at all," Spiteri said, adding that he consid- ers any wine sold for less 5 euro to be "rubbish" and "venomous". Local wine marketing campaign In his budget speech, Finance Min- ister Edward Scicluna also said that the government will embark on a marketing campaign to promote lo- cal wine. "This is just a case of the govern- ment sugaring the pill," George Deli- cata said. "They obviously know that this new tax will hit us hard." "The government should use the money gained from this new tax to raise awareness of Maltese wineries," Anthony Hili said. "However, every winery should benefit from it and not only the large ones. My company has never benefitted from EU funds because it was considered to be too small. "Instead of grumbling, let's lobby with the government to brand Mal- tese wine as a produce that is pro- duced and bottled by the same com- pany," Anthony Hili said. "There are quite a few Maltese snobs who have no idea about wine and just buy ex- pensive, foreign wine to appear high- class." Directors of Marsovin and Meridi- ana refused to comment on the situ- ation when asked. JAMES DEBONO THE new members of the Environ- ment Planning Commission, which decides permits on a daily basis, include a Labour Party candidate, the former CEO of a planning con- sultancy, and an award-winning ar- chitect involved in the restoration of historical buildings. The commission is composed of two boards, one responsible for ODZ areas and the other for per- mits within development zones, and its members were appointed for four years following a public call for applications issued by the Office of the Prime Minister after the term of the previous two boards expired. Simon Saliba, an architect and civil engineer who contested on the La- bour ticket in the last general elec- tions, as well as a former San Gwann councillor, will sit on the board re- sponsible for the issue of permits in outside development zones. Elisabeth Ellul, who drafted the new policy regulating ODZ devel- opment, will continue to chair this board. The board also includes bi- ologist and educator Charles Grech and architect Mariello Spiteri. Spiteri was the CEO of EMDP, a consultancy firm whose work included the preparation of envi- ronmental impact assessments for various major developments, in- cluding the controversial Hondoq ir-Rummien project. Some com- ments included in this report were deemed to be "biased" in favour of the marina project by MEPA's own natural heritage panel: the EIA itself was titled 'Yes to the Hondoq ir- Rummien Yacht Marina'. The second board, which is re- sponsible for development within zones, is chaired by Martin Camill- eri, a former MEPA case officer and team manager. Its members include architect Aaron Abela, the winner of an ar- chitectural award by Din l-Art Helwa in 2011 for his restoration of Villa Aspinal in Tarxien, architect Anthony Camilleri and Anna Maria Attard Montalto, who has already served on the board. A public call for applications was issued by the Office of the Prime Minister, which appointed a selec- tion board. As was the case with the previous boards, all members of the boards are precluded from conducting any private professional work un- less they get a written approval for specific work they have commenced prior to their appointment and to which they would have to declare a conflict of interest. None of the members has requested such an exemption, a MEPA spokesperson confirmed. The EPC members will earn the same salary given to the previous commission. Commission chairpersons earn an annual salary of €54,043. This sum includes a €38,184 basic salary, a €1,980 petrol allowance and a car, and two additional non-pensionable allowances of €13,879. The other board members receive €47,456 a year each. This includes a basic salary of €32,456, a petrol al- lowance of €1,980, a car and two ad- ditional non-pensionable allowance of €13,020. Members of the previous commis- sions were chosen through a public selection process. But while nine persons were selected through a public call the government resorted to head hunting after two of those chosen in the public call ultimately refused the appointment. Three persons were approached but only two accepted. Winemakers at odds over impact of new vino-tax New members for two MEPA boards Candidates chosen by Office of the Prime Minister after a public call "This new tax will affect the primary agro- producers, farmer. Delicata vineyards alone employ around 300 farmers" George Delicata All members are precluded from conducting any private professional work unless they get a written approval for specific work

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