Issue link: https://maltatoday.uberflip.com/i/827430
maltatoday, WEDNESDAY, 24 MAY 2017 5 MIRIAM DALLI IT was his favourite descrip- tion of the Labour Party in the run-up to the 2013 gen- eral elections, and four years – and a 36,000-vote majority – later, leader Joseph Mus- cat still believes his party re- mains the underdog. "We're always the under- dog," Muscat told a news con- ference on Tuesday morning, when asked about polls that favoured his party to win the 3 June elections. Why? "Just read the front pages [of newspapers]," he quipped. He was replying to questions by reporters following the de- livery of the Labour Party's proposals for businesses. During the press conference, Muscat was also asked wheth- er he would urge the elector- ate to vote against corruption: "Of course I do." The daily presentation of new proposals for different sectors by the Labour Party has not taken the attention away from the Panama Papers revelations. Reiterating that it was "po- litically insensitive" for min- ister Konrad Mizzi to open an offshore company, Muscat in- sisted that – offshore or not – the most important thing for a Cabinet member would be that of declaring their assets. "The lessons learnt from Panama Papers are clear: I believe that you need to de- clare all you have, and discuss them. The discussion should be about countries outside Malta, irrespective of whether they're offshore or not. Trans- parency remains the most im- portant point." Muscat added that it would have been extremely wrong if the companies had not been declared, rendering their po- sition "unsustainable". "It was politically insensitive to set up a company there [in Panama]," he said. The European Commis- sion's country specific report In its country specific rec- ommendations for Malta, the European Commission on Monday focused on the is- land's financial system, which attracts a number of foreign institutions, most notably due to its favourable tax environ- ment. "Malta is the only EU Mem- ber State utilising the full imputation system of com- pany taxation and it offers a refundable tax credit scheme. It has an extensive network of double taxation treaties, and it has an attractive tax resi- dency status for individuals. "The supervision of the in- ternationally-oriented busi- ness, however, is challenging. The financial sector carries out most of its activities out- side Malta. The ability of a relatively small supervisory authority to oversee a large system, in particular in the insurance sector but also in banking, is under pressure." Reacting, Muscat noted that, as opposed to past years, the European Commission was changing its recommenda- tions for Malta, which meant the country was addressing the recommendations put forward by the EU. He argued that this year, the European Commission was giving special attention to taxation and financial mat- ters across the member states, with recommendations to other countries to improve their tax collection system. "Likewise, it told other countries to beef up their au- thorities. I don't think that the issue of attracting foreign interest is critical." Muscat also added that, contrary to recommenda- tions made to three other countries, "nowhere does the European Commission men- tion corruption in its report on Malta". Proposals for businesses • Increase the Micro In- vest scheme from €30,000 to €50,000 for business- es based in Malta; up to €70,000 for those compa- nies where the majority of shareholders are women, for self-employed women and for businesses in Go- zo. • Transfer of shares to founders of startups will be tax exempt • Tax exemption on VAT for small enterprises will go up to €20,000 • Update rent laws to give more legal power to ten- ants • Tax incentives for compa- nies who introduce volun- tary pension for their em- ployees • Introduce fiscal measures for companies who offer shares to their employees • €50,000 tax deduction for companies who offer childcare facilities • Tax incentives up to €20,000 for companies who introduce telework or f lexible hours • Up to 75% tax credit for companies that offer Gozi- tan workers teleworking and up to €10,000 salary refund for companies em- ploying Gozitans • Fiscal schemes incentiviz- ing contractors who invest in new machinery with low emissions • Companies who relocate to Gozo will be tax exempt for three years and their relocation expenses will be covered. News For Muscat, the Labour Party will always be 'the underdog'