On property taxes

To some it is nice to – even after many years – see their positions being recited as the right ones. I was writing in this national newspaper in favour of the introduction of property taxes in Malta as early as some 15 years ago.

This time round it was Albert Cilia Vincenti (December 16) who has again brought this important subject up. He too is essentially both in favour and correct.

Let’s again recapitulate some essentials.

Malta is still the kid in the corner in Europe in not having such taxes. In the UK, Germany, Italy, the US, Canada, Australia, and elsewhere, such taxes exist, albeit in various forms. Is it symptomatic of kowtowing to speculators and the construction industry that we don’t have such taxes in Malta?

Property taxes should not be levied on one’s own single and regularly proven as permanent residence; but, including summer residence upwards, all property owned, barring land which is provenly, regularly, and productively farmed and worked, should be taxed.

There are various forms of property taxes. Photo: viewingmalta.com

There are various forms of property taxes, and various methodologies for collecting them. For example, the owner of holiday rental property which is regularly registered as such, and who provides effectively checkable evidence of such holiday renting and regularly pays other due taxes on such income, could be exempted from a property tax, or from part of it.

It will be no excuse for anyone to hold that a property is kept unutilised or unoccupied to evade paying such taxes.

Property taxes will have to be paid by the ultimate, effectively registered dominus, of the property.

And there are indeed other elements which can and should be considered. But the fact remains that a national debate is, once again, needed about this subject.

Indeed, I feel somewhat perplexed that the EU, in its regular annual examining of Malta’s budgeting and fiscal policies, has not (as far as I know) come to our government with this subject, and this from both the essentially financial and economic management aspect, as well as, of course, the well-discussed environmental approach.

The maxim “il-ġebla l-aħjar investiment” (investing in property is the best) should have been proven wrong a long time ago in our beloved Malta. But, as hinted above, this country is always living after the times.

JOHN CONSIGLIO – Birkirkara