Volunteer Council proposals for elections
People donating to certain categories of voluntary organisations should have the amount deducted from their taxable income, the Malta Council for the Volunteer Sector (MCVS) has urged in its proposals to the political parties.
The Council believes that when drafting policies, political parties should keep the Voluntary Sector in mind, as it is a key contributor in Maltese Society.
The MCVS proposed that preferential tax (Income Tax & VAT) treatment should be granted to voluntary and non-profit organisations established for the benefit of the general public. In addition, the Council argued that taxpayers may claim an exemption on the transfer of property or a donation of property to a registered voluntary organisation which has been approved for these purposes. On its part the, organisation should be allowed to apply for exemption on duty on documents for these received property donations.
The Council added that certain voluntary organisations are VAT exempt without credit given to the activity they are engaged in. The MCVS proposed that through a system of claims the organisations be allowed to recover the VAT paid. In addition, fundraising events and activities carried out by enrolled voluntary organisations should be considered exempt from paying VAT.
Voluntary organisations import both equipment as well as vehicles, the Council argued, explaining that some of these goods are used for cultural, educational, charitable, welfare or youth organisations. “Whilst there are concessions given to individuals who may import vehicles for personal use under special conditions, such as medical issues, unfortunately there is no concession on duties in relation to voluntary organisations,” the Council explained.
With regards to paying utility bills, voluntary organisations are considered to be ‘commercial entities’ since they do not fall under the ‘residential’ category. Therefore, the Council recommends that a third category be introduced specifically for voluntary organisations.