If re-elected, a Nationalist government will widen existing tax bands, so that salaried employees who earn less than €60,000 will see their maximum tax rate reduced from 35% to 25%.
In his first electoral campaign press conference at the Upper Barrakka yesterday, an upbeat Prime Minister Lawrence Gonzi outlined a plethora of fiscal measures which he claims will stimulate the economy and provide incentives for women who wish to continue working.
“A new Nationalist government will widen the tax bands. The minimum taxable income will be raised,” Gonzi said, adding that these measures shall “leave more money in people’s pockets.”
Gonzi pledged a widening of the 15% and 25% tax bands, saying the incentive served to reward employers and self-employed who generated work. He also pledged to leave overtime untouched, denouncing Labour’s proposal to remove tax on overtime as intended to reduce the actual amount that is paid in overtime before tax. He said his government would “keep up the fight” to give workers the choice of how much they can work, and to remove limits to overtime.
Gonzi also made reference to his successes managing Malta’s finances over the past four years, implying that the economy grew by about 4% last year, and inflation was kept at one of lowest levels in Europe.
Unlike Labour, a new Nationalist government would leave overtime as it is at present, Gonzi said, arguing that under the tax-free system proposed by Alfred Sant, the worker will end up being paid on an hourly basis, thereby earning less money in the long run.
A substantial portion of the PN’s economic proposals are also aimed at luring more women to the workplace. Under the system proposed by Lawrence Gonzi, women shall have one tax-free year for every child. This, Gonzi claimed, will provide an incentive to encourage women to carry on working after maternity leave… although he later ducked a question about whether the measure will be denied to single mothers.
All in all, Gonzi stressed that the package of measures is in keeping with the Nationalist government’s chosen electoral theme, “Biex nibqghu nghixu ahjar” (“To continue living better”), arguing that the proposals have been thought to improve the future of families, young people, investors and pensioners. These measures are expected to further boost the economy to the extent that within two years, the government expects tax revenue to rise as the economy continues to grow.
“Malta is in need of a serious Government which is ready to bring more investment to the country,” Gonzi said.

sagius@mediatoday.com.mt