In his weekly videoblog Finance Minister Prof Edward Scicluna discusses various aspects related to taxation. Besides being an obvious source of revenue generation for governments, He illustrates how progressive taxation is designed to levy taxes at higher rates on high income earners to in order to achieve a more equitable distribution of after tax incomes.
Minister Scicluna points out that certain taxes have high compliance costs for persons and small companies to keep detailed tax records and returns. He also mentions how loopholes in the tax system enable tax evaidance. Finally Minister Scicluna discusses the aspects of fiscal policy and how this affects inflation, employment and economic growth.
– Tuesday, 16th July, 2013.