Could Budget 2026 Bring A New Tax? And What Should It Be?

The possibility of a new tax is being discussed after Finance Minister Clyde Caruana stopped short of ruling out new taxation measures ahead of Budget 2027.

Speaking at an event organised by Times of Malta, Caruana faced questions about Malta’s finances, the economy and what people can expect from the upcoming Budget.

While the Finance Minister has indicated that VAT and social security contributions are off the table, he has not ruled out other forms of taxation.

This has raised questions over what a possible new tax could target. Would it focus on higher-value assets or wealth? Could certain types of income, profits, industries or activities face additional taxation? Or should the Government avoid introducing any new tax altogether?

The discussion comes as the Government faces rising expenditure, including the cost of energy subsidies, while seeking to maintain existing commitments to households and businesses.

Recent Labour Budgets have largely focused on tax cuts and measures aimed at leaving more money in people’s pockets. Introducing a new tax would therefore mark a shift in approach.

No new tax has been confirmed at this stage, and the final decisions will only be known when Budget Day arrives.

But if Malta were to introduce a new tax, what should it target? Would people support a new tax if the money raised was used to fund specific services or reduce other costs, or should the Government look for savings elsewhere instead?

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