Issue link: https://maltatoday.uberflip.com/i/995828
NEWS maltatoday | WEDNESDAY • 20 JUNE 2018 MASSIMO COSTA THE government has increased the VAT exemptions threshold from €14,000 to €20,000, with companies or persons who earn less than this limit being free from having to pay VAT. Finance Minister Edward Scicluna said the measure was aimed at small-scale earners, such as retired people who worked a few hours a week, or a housewife who held a part- time job. "When you force such small- time earners to enter the VAT machine meant for bigger businesses, this might cause them some panic," he said. Scicluna highlighted how anybody making use of the scheme – which is voluntary – would still be contributing VAT to the government, since they would still be paying such tax on their inputs, for instance, when they buy the tools necessary for their trade. There are currently around 15,600 people who are eligible for exemption because they earn less than the €14,000 limit, with an additional 900 who will fall under the €20,000 threshold. Anybody wanting to benefit from the measure would have to apply for it on a yearly ba- sis, declaring that they earn less than €20,000. Asked whether the measure could lead to tax evasion by way of people only declar- ing their income up to a level which falls below the thresh- old, and not declaring the rest so as not to pay VAT on it, Scicluna said it would be up to the tax compliance unit to detect any cases of abuse. "If there is a person who opens their shop every day, all year, and has many cus- tomers, it wouldn't be cred- ible that they don't earn more than €20,000. VAT inspectors would notice this and follow it up with the business con- cerned," Scicluna said. "However, when you have borderline cases – people who are really part-timers, occa- sional workers, and so on… these are paying VAT on all their inputs and cannot ask for a refund from the govern- ment [if they are making use of the exemptions]," he said, "So the government doesn't run the risk of these people making some large claim." mcosta@mediatoday.com.mt VAT exemption limit raised to €20,000 Anyone abusing from the scheme would fall under VAT inspectors' radar, Finance Minister Edward Scicluna says JAMES DEBONO TOMORROW the Planning Au- thority is set to refuse a high-rise 12-storey development instead of the Meli Bugeja marble factory in Qormi, next to a historic wind- mill. This will make the Qormi development the first one to be rejected according to the policy approved in 2014. The reason given by the PA is that the applicants failed to prove that the proposal is eligi- ble to qualify for additional sto- reys over and above local plan limits through the Floor Area Ratio policy. The policy does not set clear boundaries for the locations where high-rise and medium-rise developments can take place. But the policy iden- tifies nearby Mriehel and Marsa as localities where the policy can be applied. The PA may also consider medium-rise de-velop- ments of up to 10 floors on over 4000sq.m sites in other localities but only following a develop- ment brief. The new 12-storey building was set to rise to the 43-metre build- ing height limit which is close to the maximum height for medi- um-rise buildings (42.5m). The application was set for re- fusal after the applicant "failed to provide a detailed justification" to demonstrate it is eligible for tall buildings according to the FAR policy. In this way, even before the completion of traffic and visual impact studies, the proposal will be nipped in the bud. In the application presented one year ago, the developers also proposed the excavation for a three-storey underground park- ing and the construction of a 12-storey high building (c. 43m high) over a 1,070sq.m footprint. The building was to consist of of- fice spaces and a cafeteria at the ground-floor level. A public open space and a road surrounding the building with a turning area to-wards one end were also pro- posed. Since the approval of the FAR policy, the Planning Authority has approved five high-rise de- velopments in Gzira, St Julian's, Mriehel and Sliema. Of these, the townsquare development was over-ruled by the Review Tribu- nal, which revoked the permit. The Qormi application is set to become the first application to be immediately shot down by the Planning board. For the first time, PA set to turn down a high rise The Meli Bugeja marble factory is situated just off the Mriehel Bypass MATTHEW VELLA A delegation from Alternattiva Demokratika held a meeting with Ombudsman Anthony Mifsud, and planning and health commissioners Alan Saliba and Charles Messina, to discuss the latest Ombuds- man's annual report. "It makes for a very worry- ing read because it demon- strates clearly that the politi- cal class's understanding of the fundamentals of account- ability are incredibly weak," chairperson Carmel Cacopar- do said. "The country was shocked that the Ombudsman had to go to Court and wait for the Court's decision on appeal merely to open an investiga- tion on alleged irregularities in the management of ap- pointments and promotions in the Armed Forces. This is one of the country's biggest obstacles being created by the political class to thwart accountability mechanisms," Cacopardo said. "The fact these obstacles are created by members of the Cabinet does not bode well for democratic accountability in this country. Democracy is not only the right to vote but the acceptance that mech- anisms of accountability are respected and not thwarted." Cacopardo was accompa- nied by secretary-general, Ralph Cassar, and deputy secretary-general, Anna Azz- opardi. The Ombudsman has com- plained in his report of a lack of will of departments, min- istries and the authorities to provide information request- ed, with the consequence that investigations are slowed down and citizens seeking re- dress have to wait much long- er than necessary. Additionally, Mifsud said non-disclosure clauses in various agreements with dif- ferent government entities through which essential pub- lic services such as energy and health are run on commercial lines, are leading to claims that there is no obligation to be accountable and provide information other than that stipulated in contracts. The Ombudsman has said this refusal of access to infor- mation or reluctance to allow disclosure was becoming the country's leadership style. "Outright refusal or extreme reluctance to disclose infor- mation can be said to have become a style of government that is seriously denting the openness and transparency of the public administration." "It is our duty not to let this happen," Cacopardo said. Ministers creating obstacles to accountability, AD says in Ombudsman's meeting