Key Moments:
- Malta has expressed its intention to veto any new EU-wide tax powers, including those related to gambling.
- Negotiations for the next EU financial framework have brought renewed focus to gambling levies and Malta’s corporate tax system.
- The Maltese government and opposition have shown unity in defending national tax authority and opposing direct EU-level taxes.
EU Budget Talks Highlight Gambling Tax Concerns
Malta has set a firm boundary as discussions surface around the European Union’s upcoming long-term budget. The country has openly declared that it would block any initiatives to grant Brussels expanded authority to impose taxes across the entire EU, signaling a potential veto ahead of official negotiations.
Gambling Industry’s Central Role in Malta
This stance is especially significant for Europe’s online gambling sector. Although an EU-wide levy tied to gambling remains an unofficial idea, it has attracted considerable attention in Malta. iGaming is responsible for more than a tenth of the nation’s GDP, with hundreds of companies operating in the jurisdiction, making the proposed tax particularly impactful for the local economy.
Unified Political Response
Prime Minister Robert Abela told parliament that his administration would oppose any taxes collected directly at the EU level and would use its veto power if necessary to prevent such proposals from advancing into law.
The opposition has echoed this sentiment. PN deputy leader Alex Perici Calascione argued that Malta should adopt an even stronger position during talks and emphasized the importance of protecting Gozo’s interests in future EU funding discussions.
Tax Model Under Renewed Scrutiny
The EU budget debate has reignited scrutiny of Malta’s corporate tax system. Critics argue that the refund mechanism enables many foreign-owned businesses to dramatically lower their effective tax payments. According to figures from Lovin Malta, entities that faced tax liabilities of about €1.5 billion in 2022 ultimately paid around €216.6 million after refunds.
Successive Maltese governments have rejected these criticisms, defending the system as both legitimate and vital for the nation’s competitiveness. Authorities have insisted that tax policy should remain under national control.
Malta’s Coordinated Strategy in Brussels
Malta plans to continue its engagement with the Friends of Cohesion, a coalition dedicated to shaping the EU budget in support of smaller and less affluent regions.
It remains uncertain whether the gambling levy will become a formal proposal. However, Malta has made it clear that it will not hesitate to employ its veto if Brussels moves forward with measures that threaten its economic interests.
| Year | Potential Tax Liability (€) | Tax Paid After Refunds (€) |
|---|---|---|
| 2022 | 1,500,000,000 | 216,600,000 |
- Author
Daniel Williams
