Over €200 Million Collected In VAT From Food Establishments In 2025, Reveals Finance Minister

Malta collected €234.2 million in VAT from food establishments in 2025, Finance Minister Clyde Caruana revealed in response to a parliamentary question.

The question was submitted by Nationalist MP Ivan Bartolo, who asked how much revenue was generated from VAT on restaurants, kiosks, and similar establishments over the past year.

The figures come amid a proposal by Alex Borg, who has pledged to reduce VAT on restaurants and kiosks from 18% to 7% within his first 100 days in government.

While the proposal was welcomed by the Association of Catering Establishments, the group cautioned against the measure becoming politicised. It also noted that a reduction in VAT does not necessarily guarantee lower prices for customers, despite claims made in support of the proposal.

In his reply, Caruana warned that lowering the VAT rate to 7% would result in a significant drop in government revenue. He estimated that such a move would cost the state approximately €143.1 million annually.

#MaltaDaily