News

Interesting article on the Times of Malta by Perit Michael Falzon, Honorary President of the Malta Developers Association.

Friday, February 23rd, 2018

article

MDA favours strengthening of the law for better protection against fire hazards

Thursday, February 22nd, 2018

The Malta Developers Association welcomes in the most positive manner the news announced by Infrastructure Minister Ian Borg that laws on protection against fires in buildings are to be consolidated as part of the reform in the construction sector.

As the Minister rightly said, the law on security against fires in buildings is currently sporadic and fragmented, and the MDA feels that this reform, which will enable the law to be strengthened in this area, is urgently needed.

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older news

MDA disagrees with Opposition assessment of property tax

Malta Developers Association refers to what the Nationalist Party (PN) said on the new taxation system on the sale of property.

The MDA believes that the conclusion that this system creates inflation and/or abuse is a misinterpretation of how the property market works. It believes that, in fact, this system will leave a positive effect on the property market and will help to reduce abuse. It must be stated that the PN spokesmen reached this mistaken conclusion without consulting the MDA.

The MDA, which represents more than 90 per cent of building contractors and all developers in Malta, consulted the majority of its members and it emerged that they are in favour of this reform. A number of estate agents that are affiliated in the MDA also agree with the new system.

However, while the MDA’s reaction to this system is positive, the MDA feels that the system should be designed to:

–        Include a transition period until the tax can be applied independently;

–        In instances where the property is not developed and the owners therefore are ‘non traders’, and for some reason they sell their property earlier than five years after they bought it, the sale should be taxed at the preferential rate of 5%; and

–        Sales by couples who were engaged and call off their wedding after they have acquired a property should be exempted from tax.

It is good to note that this change is a logical evolution of the Final Withholding Tax system, which was introduced by a PN government with the exorbitant rate of 12%.

Apart from this, the country already has a VAT tax system – also introduced by a PN administration – which is a tax that does not depend on whether the sale or service offered is done at a profit or not.

However, the MDA is insisting with the Government to consider lowering the rate of 8% because it believes that in this way it will continue to foster activity in the property market and in is insisting on the need to create bigger incentives especially in the sale of property in Gozo.

21 February, 2015

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L-MDA ma taqbilx mal-pożizzjoni tal-Oppożizzjoni fuq it-taxxa tal-proprjetà

Il-Malta Developers Association (MDA) tirreferi għal dak li ntqal mill-Partit Nazzjonalista dwar is-sistema l-ġdida ta’ tassazzjoni fuq il-bejgħ ta’ proprjetà.

L-MDA temmen li l-konklużjoni li din is-sistema toħloq inflazzjoni u/jew abbuż hi miżinterpretazzjoni dwar kif jaħdem is-suq tal-proprjetà. Temmen li fil-fatt din is-sistema se tħalli effetti pożittivi fuq is-suq tal-proprjetà u ser tgħin biex l-abbużi jonqsu.Irid jingħad li l-kelliema tal-PN waslu għal din il-konklużjoni żbaljata mingħajr ma kkonsultaw mal-MDA.

L-MDA, li tirrappreżenta l-fuq minn 90% tal-kuntratturi u l-iżviluppaturi kollha ta’ Malta, tkellmet mal-maġġoranza tal-membri tagħha u jirriżultalha li huma favur din ir-riforma. Numru ta’ estate agents affiljati mal-MDA ukoll jaqblu mas-sistema l-ġdida.

Madanakollu filwaqt li r-reazzjoni tal-MDA għal din is-sistema hi waħda pożittiva, l-MDA tħoss li din is-sistema għandha titfassal biex:

–        Ikun hemm perijodu tranżitorju sakemm din it-taxxa tibda tapplika waħedha;

–        Fil-każ ta’ dawk li ma jiżviluppawx il-proprjetà u għalhekk huma ‘non-traders’u li għal xi raġuni ibiegħu l-proprjetà tagħhom qabel ħames snin mill-akkwist, il-bejgħ għandu jkun intaxxat bir-rata preferenzjali ta’ 5%; u

–        Bejgħ minn koppji li jkunu għarajjes u jħassru ż-żwieġ wara li jkunu xtraw proprjetà għandu jkun eżentat mill-ħlas ta’ taxxa.

Tajjeb li wieħed jinnota li din il-bidla hi evoluzzjoni loġika tas-sistema tal-Final Withholding Tax, li kienet introdotta minn gvern tal-PN bir-rata eżorbitanti ta’ 12%.

Barra minn hekk, fil-pajjiż diġà għandna s-sistema ta’ taxxa tal-VAT – introdotta wkoll minn amministrazzjoni tal-PN – li hi taxxa li ma tiddependix minn jekk il-bejgħ jew is-servizz ikunx qed isir bi profitt jew le.

Madankollu l-MDA qed tinsisti mal-Gvern sabiex jikkonsidra li jnaqqas ir-rata ta’ 8% għaliex temmen li b’hekk tkompli tikber l-attività fis-suq tal-proprjetà u qed tisħaq dwar l-bżonn ta’ inċentivi akbar fil-każ partikolari ta’ bejgħ ta’ proprjetà f’Għawdex.

21 ta’ Frar, 2015

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