News | Wednesday, 08 July 2009

MFSA increases burdens on companies - GRTU

Maltese businesses are disappointed that in the midst of an economic recession, Malta Financial Services Authority was allowed to increase its company registration fees – the GRTU said in a statement.
The increase came about through legal notice 354 of 2008. For small companies with an authorised share capital of up to €1500, the increase is of 150 per cent. For a company with an authorised share capital of €115,000, the fee is now €880, an increase of 270 per cent. The higher the amount of share capital the greater is the increase. This clearly discourages businesses from increasing share capital. Existing companies have to pay this increase or incur penalties.
The World Economic Forum report on Competitiveness indicates in its Malta report that the greatest obstacle for business in Malta is inefficient government bureaucracy. The burden of government regulation also negatively affects Malta’s competitiveness.
“Why certain authorities are allowed to increase their fees by such unreasonable amounts is beyond comprehension. One wonders how much of this increase will go towards reducing Malta’s overall deficit.
This increase is clearly another sign of rubbing salt into the wounds of business people. Authorities should find ways and means of introducing better and more efficient regulation by reducing bureaucracy rather than increasing fees without any real benefits for Maltese businesses,” a spokesperson for the union added.
“GRTU notes with regret that MFSA which is the Public Regulator authorised by law to safeguard the business community and the consumer from the abuses of the financial institution is now itself further over burdening enterprises rather than further relieving the excessive burdens already being suffered by Enterprises striving to compete under difficult current market situation,” the GRTU said

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