Coronavirus: Media houses ask government for VAT exemption

Malta’s main media houses are urging the government to help them face the economic repercussions of the coronavirus by offering a temporary VAT exemption.

In a letter to Prime Minister Robert Abela and Finance Minister Edward Scicluna, signed by the managers of MediaToday, Allied Newspaper, Standard Publications, Union Print, MediaLink and LovinMalta, the media houses are warning that a decrease in revenue and sales will mean that they can no longer operate.

“This is why there must be direct support for us to continue offering a service,” they said.

“Before we entered the Covid-19 crisis, Maltese print and digital media was already going through difficult times,” the media houses said.

“But, in light of what is happening, Maltese media needs help, if not direct, indirect. Right now VAT on printing and distribution services is at 18%. We pay 5% VAT when we sell newspapers. Apart from this, adverts are charged 18% VAT,” they said.

“Our businesses face big challenges, and, despite our editorial differences, we are an important pillar of democracy in our country.”

“This is why we are asking that, as in other countries, a ‘concession’ if given whereby our print and digital operations are exempt from paying VAT. This will certainly help in terms of our cash flow not being affected,” they said, adding that the exemption should apply to all media houses without distinction.

“This should be the first step to help our country’s media so it can continue offering a service to the people. In light of the decrease in revenue and sales, the media will not be able to operate. It is for this reason that direct support is needed.”

The letter was signed by:

Saviour Balzan - MediaToday Co. Ltd

Michel  Rizzo - Allied Newspaper Ltd

Noel Azzopardi - Standard Publications Ltd

Omar Vella - Union Print Co. Ltd

Dr Francis Zammit Dimech - MediaLink Co Ltd

Chris Peregin - LovinMalta CEO