NEWS | Wednesday, 14 May 2008

VAT on Diesel should be reduced – Victor Carachi

Franica Pulis
GWU President Victor Carachi said government should shoulder responsibility to limit any further increases on cost of living.
“We are in a pressing situation where the employees can neither cope with the cost of living nor can they realistically have their wages increased. Lately the price of diesel increased. What few people know is that diesel is taxed at 18 per cent VAT. The government could easily reduce the VAT rate for both employees and employers,” said Carachi last Monday on TVM programme Reporter.
The GWU President also mentioned that if employers are finding it hard to increase wages they should also lead by example so as not to frustrate their employees. “The employers cannot expect their employees to make sacrifices whilst they change their cars every three or four years. They should lead by example not to send the wrong signals. Two other issues of concern to Carachi are Human Resources managers replacing unions and the current problems facing ST Microelectronics, Malta’s largest private employer. He argues that managers can never replace a union as their final interest, with all the good intent, would be always be towards the benefit of the employer.
With regard to ST, he added: “Employees will be the first to be affected. However, this is a national issue because ST accounts for 55 percent of our visible exports. If ST closes it will affect the whole country, including banks and other suppliers. We believe the government should take the necessary steps to keep this company open in Malta.”