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Karl Schembri
“Government has no intention to increase the prices of the Gozo Channel fares,” Department of Information Director Emanuel Abela told MaltaToday in reply to questions about the impending new VAT surcharge on ferry trips.
The news broken last Sunday by MaltaToday about the VAT Department’s request to the ferry company to start paying 18 per cent VAT on the car and drivers’ fare has caused shockwaves in Gozo.
The VAT Department and Gozo Minister Giovanna Debono have refused to comment so far, although both Gozo Channel Chairman Maurice Zarb Adami and Parliamentary Secretary Tonio Fenech have confirmed that discussions about the new VAT surcharge are going on “at a technical level.”
Questions sent to the VAT Department asking it why it was imposing taxes on the company now and how much this would amount to, remained unanswered. According to The Malta Business Weekly, the company would have to pay between Lm686,000 and Lm982,000 yearly in VAT every year, which according to the DOI statement will have to be absorbed by Gozo Channel.
The company had already announced its plans to raise the car and driver fare from Lm6.25 to Lm6.50 next year, and then to Lm6.75 in 2006, before the VAT Department requested the company to start paying VAT.
Gozo Channel is expected to announce the outcome of the ongoing discussions with the VAT Department in the coming days.
karl@newsworksltd.com
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