The Malta Chamber of Commerce, Enterprise and Industry is urging the government to ditch the new property tax announced in the last Budget, arguing it would have an adverse effect on the market.

It feels the move would also encourage tax evasion as buyers will no longer have an incentive to declare the true value of the property being sold.

It called for a reduction in the rate at which provisional tax was payable or a final withholding tax payable on the final deed of sale.