Labour Party pledges to lower corporate tax rate to 25%

Feb 22 2022

Taxpayers will see the non-taxable portion of their income increase by €1,700 as part of tax savings proposed by the Labour Party.

For parents, the first €12,000 of income earned will not be subjected to any income tax. This is up from the previous €10,500. In turn, single persons will not be taxed on the first €10,800, whereas married parsons will not be taxed on their first €14,400 income of the year.

This would mean that €60 million more would be left in people’s pockets, with the incentive announced by Robert Abela alongside Finance Minister Clyde Caruana and Economy Minister Silvio Schembri.

Abela said that if Malta and Gozo vote the Labour Party into government, the income tax will be lowered by widening the tax bands. The government would also continue to dish out the annual tax refund cheques for those earning less than €60,000, which is an injection of €24 million annually.

The party is also proposing lowering the corporate tax rate to 25% down from the current 35%, on the first €250,000 profits earned during the year. Silvio Schembri explained that the proposal will help companies save up to €25,000.

Minister Caruana said the proposals will be implemented gradually throughout the legislature. The Prime Minister confirmed that the tax refund cheques for this year mentioned in the budget and the additional €100 to €200 cheques to save off inflation, announced just before the election campaign kicked off, will be posted before the election date.

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Man admits to smashing two doors at girlfriend’s apartment

Feb 22 2022

A construction contractor from Holland was discharged for six months and ordered to pay damages after he pleaded guilty to smashing two doors at the Gzira apartment where he resides.

This follows an argument with his girlfriend, with inspector Jonathan Ransley arraigning the 30-year-old from Nijmegen, Holland. The man smashed the door to the common areas and the door to the payment, causing a total of €1,515 worth of damage inside the rented Gzira flat.

Appearing in court with his forearm in a cast, he is understood to have injured himself when a pipe he tried to swing from, when trying to escape from police, gave way. He was charged with criminal damage and wilfully disturbing public peace.

During the interrogation, the accused explained to the police that he had fought with his girlfriend who subsequently locked him out. The lawyer explained how he was a little bit intoxicated, losing his temper but expressed he was sorry for what he has done.

Having heard both sids in view of the accused’s admission, Magistrate Lanfranco found him guilty and conditionally discharged him for six months. He was also ordered to pay for the damages within that period.

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Prime Minister promises cheques will be distributed before Election Day

Feb 22 2022

The tax refund and supplementary cheques which were promised in February shall be distributed before Election Day.

This was revealed by prime minister Robert Abela on Tuesday, saying that 380,000 people will benefit from a total of €70 million.

Asked by newsroom Malta Independent about whether the distribution of the two incentives during the campaign can be considered an abuse of power, Abela responded by saying that the distribution of both cheques should not be postponed.

He said that if ‘we are going to constantly talk about this every time we have distributed such cheques, the whole legislature can be considered as being an election campaign because we were insistent about handing out tax refunds and cheques.’

Before the election was announced, Abela stated that workers and students would be receiving cheques worth €100, with pensioners receiving up to €200 as an incentive to boost Malta’s economy. With this going over and above the tax refunds which will be distributed, the Prime Minister said the constant decrease in tax rates had stimulated more people to work.

When asked about the PN’s claims that the government was giving tax refunds after having stolen from the people in the payments of income tax, Abela said this was a deliberate spin by the Opposition.

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€300 yearly grant to parents of students in extra-curricular programmes by PN

Feb 22 2022

Opposition Leader Bernard Grech revealed on Tuesday that a new Nationalist government would be giving a grant of €300 to parents of students under 18 years of age who participate in extracurricular programmes.

The programme must be registered with an ESG-compliant association of their choice in sectors such as sports, culture, arts and/or performing arts.

The PN leader explained how the party in government will introduce schemes which would allow parents or guardians to deduct from their taxable income any school fees, fees for extracurricular activities as well as those related to sports.

Grech said the aim of these proposals for the youth entails incentivising them to practice sports or choose a career in culture and the arts. ‘This is part of the education that a new PN government believes in’ he said.

He also went on to give further details about another proposal which seeks to reduce the tax rate on the €80,000 for athletes, singers, coaches and others who work and earn a living from such sectors.

Grech said that the Nationalist Party is addressing these issues, as well as the cost of living situation and mental health, head on whereas the Labour Party is telling the public that that there is nothing that can be done.

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