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Contractors react to VAT

25/09/2009 16:11
The construction industry is in ferment lately, after the Finance Ministry’s decision to hasten the VAT collection from the big companies.

The Federation of Contractors’ Associations sounded the alarm once again and expressed its opposition to the decision, which coincides with the postponement of a big part of the state’s development budget.

In its announcement, the Federation stressed that it disagrees with the Minister’s unilateral decision to change the period of VAT collection for 81 companies.

“This decision was taken in a period that the construction sector sounds the alarm and urges the Ministry to take drastic measures for its strengthening so as to avoid the negative and/or catastrophic impacts on all”, it added.

“The Federation believes that such move will affect negatively the liquidity of the contracting companies, the stability and their internal organization, as well as the smaller businesses, the suppliers and the consultants”, it noted.

Taking into account the impacts on the island’s economy – especially on constructions – the Federation urges the Ministry to withdraw the amendments and urged all parties to launch deliberations so as to find the proper solution for the strengthening of the public finances without harming constructions or other professional sectors.