PN pledges to simplify bureaucracy by increasing VAT threshold to €60,000

Opposition leader Bernard Grech has said that a Nationalist Government would increase the threshold at which service providers would need to start collecting VAT to €60,000.

This is double the current limit of €30,000, which is itself higher than the previous threshold of €20,000.

Speaking at a political event, Mr Grech said this would simply bureaucracy for businesses.

This week, it was revealed that the Government loses out on at least €120 million through VAT evasion every year, with insiders saying the amount could easily be more than double that.

Persons registered as service providers must always issue a VAT receipt, but are only required to collect VAT to pass on to the Government (thereby increasing their prices) upon passing the VAT-exempt ceiling of €30,000.

The PN leader said that this increased threshold would therefore result in cheaper services for consumers.

“Nowadays," Mr Grech said, “several businesses tell the PN that too much bureaucracy could lead to a financial burden. At the end of the day, consumers shoulder this financial burden.”

He said that a PN government would improve digitalisation and interfacing, launch one-stop-shops and increase the VAT ceiling.

The party, he said, would encourage budding entrepreneurs through such initiatives.

He also said the PN would ensure a level playing field for businesses through improved tendering.