Greens demand secret MHRA tax deal through FOI

ADPD has filed Freedom of Information requests to force disclosure of the government’s agreement allowing the hoteliers’ lobby to help administer Malta’s tourism eco-tax under undisclosed financial terms.

Chairperson Sandra Gauci submitted the requests to the Malta Tourism Authority, the Tourism Ministry and the Finance Ministry following The Shift’s revelations about the Malta Hotels and Restaurants Association’s role.

“Agreements negotiated behind closed doors, without the public knowing their terms, do no credit to either the minister responsible or the MHRA,” the party said.

“This arrogance must come to an end.”

The Shift revealed that MHRA signed its agreement with MTA in April 2026, weeks before the elections. The association confirmed the arrangement but did not supply the contract or disclose its remuneration despite detailed questions.

MHRA president Tony Zahra declined to provide financial details.

CEO Andrew Agius Muscat said the arrangement was “structured around measurable improvements in collection revenues against historical levels”, without explaining how those improvements translate into payments.

The association says it supports reporting, reconciliation, collection and related operations. It insists contributions go directly into MTA’s bank account and members and non-members receive equal treatment.

Yet the financial terms and specific safeguards separating MHRA’s lobbying interests from its tax administration responsibilities remain undisclosed.

Questions sent to Finance Minister Clyde Caruana and MTA went unanswered.

MHRA also acknowledged seeking a review to prevent the announced tax increases producing “any unintended benefit to MHRA”, raising further questions about its remuneration.

ADPD previously condemned the conflict inherent in giving a business lobby a role in administering its members’ tax obligations.

“Every cent collected from tourists must be properly accounted for, and the public has a right to know exactly where this money is going,” the party said.

The three authorities now face formal requests to release the agreement they have yet to publish.