E. Rules on the financing of political parties

6. Public funding

It is noted that the draft Act does not regulate or provide for direct public funding. Current Maltese legislation foresees only some forms of indirect public funding, for example through the Income Tax Act, which provides for a tax exemption on political party income, including income from party-affiliated clubs.[1] In addition, the supply of services by “non-profit organisations of a public nature” to their members is exempt from the Value Added Tax.[2] Similarly, a deduction of expenses incurred by an elected candidate to support his or her campaign is given, as long as these do not exceed the ceiling stipulated in the General Elections Act.[3]

[1]OSCE/ODIHR Election Assessment Mission, p. 11.

[2]OSCE/ODIHR Election Assessment Mission, p. 11.

[3]Ibid.