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Retailers up in arms over benchmarking exercise
by Ivan Brincat
The Association of General Retailers and Traders is calling
on the government to listen to the concerns of small businesses
and if their pleas are not adhered to the GRTU may not be in
a position to control its members from “going all out”
against the benchmarking exercise.
In a strong-worded letter sent by the president of the GRTU
Charles Busuttil to Finance Minister John Dalli, the GRTU said
it hoped the government will listen to the problems small businesses
are facing and act accordingly.
The GRTU has also informed Mr Dalli that it will not take part
in the technical committee set up for the benchmarking of taxes.
“We believe that the system is wrong in principle and we
do not want to be associated with it in any way,” the letter
says
The association further adds the benchmarking project launched
by government is a step in the wrong direction and is being
provoked by government’s failure to control public expenditure
and for failing to administer the fiscal system and eliminate
abuse.
Mr Busuttil said the benchmarking system, if imposed, will be
another in a series of measures which have been imposed over
the past few years and which are causing huge problems to small
enterprises.
The decision to write the letter to the finance minister was
taken at a meeting of the GRTU council. The GRTU has urged the
government to discuss its proposals for the creation of a better
business environment for the self-employed and the owners of
small businesses.
The executive council of the GRTU had come up with a number
of proposals towards a better business environment in Malta.
Mr Busuttil said these proposals, unfortunately, are being shelved.
He said the GRTU were presenting these recommendations in their
report to the minister for due consideration as they conform
with EU policies regarding small and medium enterprises.
Among its proposals, the GRTU said it believes Malta can sustain
a higher-level of investment through better tax incentives.
This can be done by increasing capital allowances on a permanent
basis, introducing allowances available for investment in IT
equipment and equalising the treatment of debt and equity through
the introduction of a Proprietor’s Capital Reserve Scheme.
The aim of the Fund is to invite small businesses to retain
their profits which could be used for investment for a specific
number of years.
Mr Busuttil said in his letter that the GRTU executive council
believes that it is time for the government to adopt a positive
economic strategy which helps rather than hinders small businesses.
The GRTU President said it was time for the government to stop
introducing new fiscal measures which ultimately lead to the
closing down of many businesses.
GRTU director general Vince Farrugia told The Malta Business
Weekly that “we have to start thinking positively vis-à-vis
small
business.”
Panel beaters and vehicle repairers expressed their concern
during a head meeting held last week with the GRTU.
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