EU national governments should continue to enjoy the right to exempt vat on food and health products

Former Prime Minister Alfred Sant said that EU member states who enjoy the right not to impose VAT on food and health products should not be forced to adopt a comprehensive minimum rate of VAT on all products. The final decision on VAT exemptions should be the prerogative of national government, emphasised Dr Sant when reacting to the report “Minimum standard rate of VAT” at the European Parliament in Strasbourg.
The Maltese MEP said the case against the adoption of a comprehensive minimum rate of VAT across the board in the EU remains valid and extremely strong. This is another opportunity to assert that current exemptions on VAT rates allowed to national economies for items such as food or health products should not be removed, unless it is with the express and free assent of the national government involved.
Dr Sant said VAT is a tax which proportionately burdens lower income earners more than it does higher income ones. “Exemptions from it, especially those granted for social reasons, should be safeguarded. The effects of the 2008 recession, still with us, have been different across member states. Only in one area has the negative impact been similar everywhere: lower income citizens and families have been the most affected. Worse: while this happened, the strong and the wealthy were finding very good ways to avoid and evade other non-consumption taxes that they were subject to. No matter what the original reason was for opt-outs from uniform VAT levels across members states, their removal now should be considered exclusively on their own merits, seen from a social perspective.” remarked Dr Sant.

Maltese Version – L-ISTATI MEMBRI GĦANDHOM JIBQGĦU JGAWDU D-DRITT LI MA JIMPONUX VAT FUQ IKEL U SAĦĦA

L-istati membri tal-Unjoni Ewropea li ngħataw id-dritt li ma jdaħħlux il-VAT fuq prodotti tal-ikel u tas-saħħa jew oħrajn simili għandhom jibqgħu jgawdu dan id-dritt sakemm ikunu jridu u mhux jiġi impost fuqhom l-obbligu li jdaħħlu l-VAT fuq l-istess prodotti. Id-deċiżjoni finali fuq l-eżentazzjonijiet tal-VAT għandha titħalla f’idejn il-gvernijiet nazzjonali tal-UE. Dr Alfred Sant qal dan meta tkellem dwar ir-rapport dwar ir-rati minimi tal-VAT fil-Parlament Ewropew fi Strasburgu.
Dr Sant qal li l-VAT hija sistema ta’ taxxa li titfa’ l-piż fuq dawk li jaqilgħu l-inqas aktar milli fuq dawk li jaqilgħu l-aktar. ‘Eżenzjonijiet mill-VAT, speċjalment dawk li jingħataw għar-raġunijiet soċjali, għandhom ikunu mħarsa. L-effetti tar-riċessjoni tal-2008, li għadhom magħna, inħassu b’mod differenti fl-istati membri tal-UE. F’qasam wieħed biss, l-impatt negattiv kien simili ħafna: il-familji li jaqilgħu l-inqas kienu dawk li l-aktar ġew milquta. Agħar minnhekk: sakemm dan kien qed iseħħ, dawk li kellhom il-flus sabu metodi ġodda biex jevadu t-taxxi li suppost ħallsu. Hi x’inhi r-raġuni għaliex inħolqu l-eżenzjonijiet mill-VAT fl-istati membri, it-tneħħija tagħhom għandha tiġi kkunsidrata biss mill-gvernijiet nazzjonali, mil-lenti tagħha nfisha u mill-perpettiva soċjali.” saħaq Dr Sant.