A study carried out by EY company, in collaboration with the Chamber of Commerce, showed that the yachting industry generates over €100 million a year apart from other direct income for the Government. Details on the industry were given by Finance Minister Edward Scicluna who announced that the case that the European Commission initiated on the VAT tax and yachts registrations in Malta was satisfactorily concluded.
It was pointed out during a press conference by Minister Scicluna, together with Chamber President Frank Farrugia and Alison Vassallo from the Yachting section that during the past 12 years, the industry witnessed a strong growth which was reflected in the registration under the Maltese flag of over 750 yachts of over 24 metres. Dr Vassallo said that some of the biggest yachts in the Mediterranean are registered under the Maltese flag.
She added that despite that Malta conformed itself with the European legislation on VAT tax on yachts, the European Commission wanted clarifications and initiated a case against Malta.
Dr Alison Vassallo stated “while Malta maintained its stand with regards to compliance of registrations on the old guidelines, which were completely in line with EU law, we can announced that on the 1st March this year, new guidelines were published”.
Minister Scicluna stated that the Government worked wisely with the legal experts to solve this issue, adding that the case against Malta will be dropped and that the measures taken by the Government will not reduce any income from the industry.