illuminated Trail Advertisement
AD
Maltadaily.mt

Budget 2027: Foreigners Could Face More Charges As Government Seeks Revenue

Budget 2027: Foreigners Could Face More Charges As Government Seeks Revenue
Local

With Budget 2027 just hours away, attention is turning to how the Labour Government plans to raise additional funds without placing further financial pressure on Maltese families.

According to an exclusive report by Times of Malta, the Government is expected to remove free public transport for most third-country nationals (TCNs) who do not hold long-term residency in Malta. Maltese and EU nationals would continue travelling for free.

However, public transport may not be the only area where foreigners face additional charges.

The tourist tax is also expected to increase from its current €1.50 per night. While the new rate remains unknown, a significant increase could generate additional revenue from visitors.

Further measures affecting foreign nationals could also be considered, including potentially higher administrative or licensing fees, although no such additional charges have been officially confirmed.

The developments come at a politically sensitive time, with protests spreading across parts of Europe over rising living costs, fuel prices and economic pressures.

Finance Minister Clyde Caruana has already warned about the increasingly difficult financial situation, with energy subsidies alone expected to cost around €400 million in 2027.

Speaking earlier this month, Caruana refused to rule out new revenue-raising measures, stating: “I'm not going to touch VAT, income tax or social security.”

He has also raised concerns about Malta's dependence on foreign workers, arguing that businesses must invest more in technology and productivity rather than continuing to rely heavily on additional labour.

The emerging picture suggests that the Government could seek to raise more revenue from tourism and certain categories of foreign residents while protecting Maltese households from additional direct taxes.

However, the full extent of these measures remains unknown.

All eyes are now on Clyde Caruana as he presents Budget 2027 later today.

#MaltaDaily