A Budget that extends the safety-net for Businesses, more tax incentives should follow to enable new investments
19 October 2020
Budget 2021 The Malta Chamber of SMEs is pleased to see a number of its...
The GRTU's Tourism Hospitality and Leisure Division has successfully negotiated with the Malta Tourism Authority a reduction in the bank guarantee requirement for commercial establishments having a permit for outdoor tables and chairs.
Following lengthy talks over the past months, the MTA has agreed to reduce the rate per square metre for a bank guarantee in favour of the MTA, which licensees of establishments holding an outdoor concession permit for tables and chairs had to procure.
The rate, which was originally imposed at a hefty €250 per square metre of concession space, has now been reduced to a reasonable rate of €50 per square metres. Consequently the bank guarantee which needs to be procured by licensees holding such a concession will be calculated at the rate of €50 per square metre of outdoor concession area occupied by an establishment's tables and chairs.
In a statement, Philip Fenech, President of the GRTU's Tourism Hospitality and Leisure Division, explained how this reduction will alleviate the additional financial pressures of having a substantial part of their liquidity held up in a bank guarantee. The scope of the bank guarantee which was imposed by the MTA is designated to offer a security against the payment of any breaches by licensees of their obligations arising from their concession permit. This imposition was introduced following several abuses by licensees who went beyond the parameters of their concession. Mr. Fenech reiterated that the MTA is still overtly secured at the reduced rate of €50 per square metre; and the previous exorbitant rate was simply prejudicing a licensee's liquidity unnecessarily.
For further details related to this issue kindly contact Mr Philip Fenech – Deputy President & Vice President Hospitality & Leisure on 99493534
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