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Income tax cuts, cheaper utility tariffs part of Budget 2014
According to pre-budget consultation document government expecting economy to grow at an average rate of 1.4%.
9 August 2013, 12:00am
Miriam Dalli
Miriam Dalli
2 min read
Finance Minister Edward Scicluna
The income tax cuts as proposed by the PN administration last year, a 25% reduction in utility tariffs and the introduction of the third pillar pension are part of the Budget 2014.
Launching the pre-budget consultation document, Finance Minister Edward Scicluna insisted that government's priority was to sustain stability.
"The government's priority is to remain on track with its plans on reducing deficit. This will in turn help us analyse the projects and initiatives which the government can invest in," Scicluna said during the presentation of the document to members of the media.
While social partners and civil society will be receiving the report now, MCESD will be discussing it on 2 September. "It will give them enough time to go through the document... and serve as holiday reading as well," the finance minister said.
Scicluna reassured that the "stable" economic outlook allows government to go ahead with the planned tax reduction and other promised measures such as utility tariff reductions.
"While it is true that the tax reduction was inherited from the previous government, there is nothing which is stopping us from implementing it. It gives incentives to households with a certain high level of income, especially households where both parents work," he said.
The minister said the government wanted to stabilise the tax burden. Currently, the income from taxes amounted to 42%. While the top rate of income tax will be reduced, Scicluna did not exclude government would find "alternate sources" to generate revenue.
He however reassured that government's ultimate goal was to have a fair and equal distribution of wealth.
"The budget will address those who are in need. It will tackle economic growth which will be distributed among the different social strata."
Scicluna said the macroeconomic stability was important for both investors and businesses. According to macroeconomic indicators, in 2013 the Maltese economy is expected to grow at an average rate of 1.4% in real terms. In 2014, the Maltese economy is expected to register a real GDP growth rate of 1.6%.
Scicluna said the unemployment rate was expected to decrease to 6.3% during 2013 and remain stable during 2014. Data for the first quarter of 2013 showed an increase of 2% to 45.8% in female employment rate.
Miriam Dalli joined MaltaToday.com.mt in 2010 becoming assistant editor f...
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Totally agree with maltesejustice!! Not only our pension is poor, but gets poorer with charges of income tax, diminished Security Pension,and ever increasing cost of living. Security Pensions were paid for 'through the nose' therefore it is only just that they should be paid in full.
Maureen Attard •
Tnaqqis ta' Income tax lil dawk li jaqilghu 20,000 euro u aktar ahna l-iktar fil-bzonn li naqilghu inqas minn 20,000 ser nibqu insaffru? Il-kontijiet, l-gholi tal-hajja u mitt elf haga ohra ghalina li naqighlu inqas minn 20,000 ma jolghux? Nispera li titranga din il-pudina li saret mill-gvern precedenti. Sewwa jghidu li min hu mejjet fis-sakra u min hu mejjet ghal-qatra.
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This Government is supposed to be a social one. The tax cuts proposed by the previous Government help only those that have a lot but leave all the rest in limbo such as us pensioners. Where is the social justice in this - reducing income tax from 35% to 32% before the election, and further down to 25% helps only those that have a lot but not us. We will not be beneficiaries of any tax cuts for those who are taxed less than 25%. Yet, we have to survive on our pensions which are taxed, and those who received a Government Treasury pension have their social security pension, for which they had paid through the nose along the large number of years, reduced to a pittance simply because they also receive the Treasury pension. Yet, others who receive foreign pensions are now receiving the full amount due. THAT MY DEAR GOVERNMENT IS MASSIVE SOCIAL INJUSTICE.
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The income tax cuts as proposed by the PN administration last year..... meaning income tax cuts for the wealthy and as always, and those who cannot makes end meet will have their hemorrhoids pulled out further. The tax free brackets should be increased for one and all and not make concessions for the wealthy dear Profs Scicluna. Since the end of The Malta Labour Party the workers has been left to drift alone, now they are Moderate and Progressive. Mintoff was the only person who cared about those in the lowest of classes.
