PN Leader Pledges To Level Tax Playing Field For Maltese Catering And Retail Businesses

PN leader Alex Borg pledged a harmonised 15% corporate tax rate for local and foreign businesses within the hospitality and retail industries to even out the playing field.

While all companies are subject to a 35% tax rate, foreign companies can benefit from a refund scheme through which profits are effectively taxed at a 5% rate.

Borg told a political rally in Qormi yesterday that the current state of play is creating unfair competition for local businesses and pledged to reform it if the PN is elected to government.

The Malta Development Association proposed a similar scheme last year, calling for taxes on local companies to decrease and taxes on foreign companies to increase until they’re both effective 5% as part of a five-year plan.

Cover photo: Alex Borg