Restaurant Association Says Clyde Caruana Is ‘Detached From Reality’

The Association of Catering Establishments (ACE) criticised Finance Minister Clyde Caruana for his recent comment that the average restaurant pays just €4,500 a year in corporate income tax.

“ACE feels that such comment was unfair, out of place and inaccurate,” ACE said.

“The association feels that such comment reflects the Minister’s detachment from reality especially when recent surveys commissioned by the association prove him wrong.”

“Moreover, if what the Minister claims is true, the government’s fiscal system is failing since such figure quoted can never be deemed as realistic, given the number of registered catering establishments in Malta and Gozo.”

Caruana passed this comment while dismissing the restaurant lobby’s key call for their VAT rate to be slashed from 18% to 7%.

He said that restaurants currently pay less tax than the average citizen and that slashing their VAT rate to 7% would cost around €80 million.

“ACE stresses on the importance not to be used as a political ball between government and opposition,” the statement read.

“Its main aim is to ensure the industry’s well-being and in order to do so, it insists on the need for constant healthy and constructive discussions with government and opposition.”