Image Source : TVM News.mt
Malta’s Finance Minister Clyde Caruana has announced a tax cut costing over €100 million in the upcoming budget, exceeding initial estimates. Every taxpaying worker will benefit from tweaked income tax bands, with Prime Minister Robert Abela hailing it as “the biggest tax cut in history.” This move surpasses the €60 million estimated cost of widening tax bands pledged during the 2022 election campaign, where the Labour Party promised a €1,700 increase in the non-taxable portion of income.
The budget, set for October 28, will also allocate funds for various initiatives, including increased children’s allowance, pension hikes, maintained energy and fuel subsidies costing approximately €460 million, or 0.7% of GDP. Additionally, collective agreement increases for teachers, health workers, and the public service, as well as enhanced social benefits, will be implemented.
Caruana ruled out changing corporate taxes, citing the need for EU agreement on a global minimum effective tax rate of 15% for large companies, those with a turnover above €750 million, as led by the OECD. This ensures Malta’s tax reforms align with international standards.
The tax cut aims to ease the burden on workers and stimulate economic growth. With the budget nearing, Maltese citizens and businesses eagerly await further details on these developments.
The total allocation for these measures stands at €460 million, with the tax cut alone costing over €100 million. As the budget unfolds, attention will focus on its impact on Malta’s economy, businesses, and individuals, amidst global economic uncertainty.
