PN Propose Raising Tax Threshold To €80,000

The Nationalist Party has unveiled what it describes as a major reform of Malta’s personal taxation system, centred on a comprehensive restructuring of tax bands that would reduce the tax burden across the board.

At the heart of the proposal is a significant increase in the top tax threshold, which would rise from €60,000 to €80,000.

New tax bands would be introduced across all categories, applying to employees, self-employed individuals, and pensioners. This means that employees earning more than €80,000 would now be taxed at 35% and not those earning more than €60,000 as it currently stands. The party stated that this restructuring would result in lower taxes for everyone, including single individuals, married couples, families, and parents.

The reform also seeks to address the impact of the Cost of Living Adjustment (COLA), ensuring it no longer leads to higher taxation. Under the proposal, all tax bands would increase annually in line with COLA, allowing individuals to retain the full benefit of cost-of-living increases.

Additional measures include exempting the first €10,000 earned from part-time work or overtime from tax, as well as introducing incentives for families who host foreign students.

The Nationalist Party described the proposal as a structural shift towards a fairer and more modern tax system, aimed at strengthening household income and better reflecting current economic realities.

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