The Nationalist Party's tourism spokesman Mario de Marco has defended the government's proposed VAT reduction for restaurants, arguing that the measure will be partially self-financing through increased economic activity in the hospitality sector [1].

De Marco's comments come as the government moves forward with plans to lower the value-added tax on restaurant services, a policy aimed at supporting Malta's vital tourism and hospitality industries. The spokesman's position suggests that while the initial reduction represents a cost to the state, the resulting boost to business activity and consumer spending will generate additional tax revenue that offsets part of the expense [1].

This economic argument reflects a broader debate about how best to support the restaurant sector following challenging periods for the industry. Proponents of the VAT cut contend that lower costs will encourage more dining out, increase footfall to establishments, and ultimately strengthen the overall hospitality economy—benefits that should translate into higher government revenues further down the line [1].

The position taken by De Marco indicates the PN's confidence in the multiplier effect of tax reductions for businesses that employ significant numbers of Maltese workers and contribute substantially to the island's tourism appeal.