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Malta has made one thing clear before negotiations over the European Union’s next long-term budget even begin: any attempt to give Brussels new powers to impose EU-wide taxes could face a veto from the island nation.
That position could carry particular weight for Europe’s online gambling industry. Among the funding ideas circulating in Brussels is a possible levy linked to gambling, a proposal that remains unofficial but has already attracted close attention in Malta, where iGaming is one of the country’s largest economic drivers.
Prime Minister Robert Abela told parliament that his government would oppose any new taxes collected directly at EU level. If necessary, Malta would use its veto to stop such measures from becoming law.
A Powerful Tool in Budget Negotiations
The timing is significant. EU member states are beginning negotiations over the bloc’s next multi-year financial framework, a process that often sparks debate over how the Union should raise and distribute money.
Tax policy remains one of the few areas where every member state must agree before new rules can be adopted. That gives Malta, despite its size, the same blocking power as every other EU country.
For Malta, the discussion goes well beyond principle. The country has spent years building itself into one of Europe’s leading online gambling jurisdictions, with the sector accounting for more than a tenth of national GDP. Hundreds of operators, technology firms and service providers have established operations there, creating an industry that plays a central role in the country’s economy.
An EU-wide gambling levy would inevitably land harder in Malta than in many other member states.
Tax System Faces Renewed Scrutiny
The budget debate has also revived criticism of Malta’s corporate tax model.
Tax justice campaigners continue to argue that the country’s refund system allows many foreign-owned businesses to reduce their effective tax bills dramatically. Figures cited by Lovin Malta suggest companies that could have faced tax liabilities of around €1.5 billion in 2022 ultimately paid about €216.6 million after refunds were applied.
Successive Maltese governments have rejected suggestions that the system is unfair, maintaining that tax policy should remain a national responsibility and that the country’s framework is both legitimate and essential to its competitiveness.
Political Unity on the Core Issue
Despite disagreements over Malta’s broader tax model, there is little division over its negotiating position in Brussels.
The opposition has largely backed the government’s resistance to new EU-level taxes. PN deputy leader Alex Perici Calascione argued that Malta should take an even firmer approach during negotiations while also ensuring that Gozo’s interests remain protected when future EU funding is discussed.
Malta has also confirmed it will continue working with the Friends of Cohesion group, a coalition of member states that coordinates positions on the EU budget and seeks to preserve funding for smaller and less wealthy regions.
Whether a gambling levy ultimately becomes a formal proposal remains uncertain. But if Brussels moves in that direction, Malta has already indicated it is prepared to use one of the strongest tools available under EU law to stop it.
Source: igamingexpress.com
