Accountants call for focus on competitiveness and sustainability in Budget 2023

Budget 2023 should focus on initiatives which enhance Malta’s competitiveness and sustainability, the Malta Institute of Accountants said in its pre-budget proposals and other tax related matters.

These proposals were presented by MIA President David Delicata, Chief Executive Officer Maria Cauchi Delia, MIA Officers and representatives of the Direct Tax Committee to the Minister of Finance and Employment Clyde Caruana during a meeting held at the MIA’s Head Office on Thursday. The various policy recommendations and specific initiatives were collated by the Institute after extensive internal consultation with the MIA’s committees and groups.

The accountants’ body has identified a number of initiatives intended to enhance the economy’s competitiveness, including through the simplification, clarification and consolidation of legislation, the facilitation of family business succession and the reduction of burdens on private operators.

The MIA has also called on the government to identify and implement the necessary measures that will contribute towards the country reaching sustainability targets. These include fiscal benefits that further incentivise the use of environmentally-friendly vehicles and energy-efficient goods as well as in support of lifestyle choices which reduce the dependence on the personal vehicle. Support towards employers who invest in greening their facilities is also encouraged.

In view of Malta’s challenges associated with an ageing population and growing debt levels, the MIA has also put forward recommendations related to supporting the improved uptake of private pension plans in order to enhance the sustainability of Malta’s social security system.

The meeting with the Minister of Finance also served for the Institute to address the constant challenge faced by the profession related to the lack of human resources which is a significant risk to the industry’s competitiveness at the present time. The Institute is working on a number of proposals aimed at facilitating the recruitment of third country nationals and strengthening their retention.

The presence of the members of the Direct Tax Committee also facilitated a discussion on various proposed fiscal amendments, intended to streamline the Maltese tax system in order to enhance fairness and justice while strengthening the competitiveness of Maltese enterprise. The Institute has already engaged in discussions on the matter with the Commissioner for Revenue which will continue following the meeting with Minister.

The Institute appreciates the feedback provided by the Minister of Finance throughout the meeting and looks forward to a positive consideration of its proposals in the upcoming budgetary exercise.