Employers want new tax reductions and longer school hours

The Malta Employers Association is calling for targeted income tax reductions in its pre-budget proposals, saying that tax incentives similar to the parent-tax band introduced in 2011 should be utilised again to increase the income of families with children earning medium incomes.

The MEA, which said the budget's focus should be on fiscal consolidation and a balanced budget, said it also supported active labour market policies that could encourage greater participation in the labour market and increase tax revenues for government.

"The budget, as well as the ensuing debate, should be based on the sustainability of public finances and not political opportunism. The budget should send a message of a commitment towards financial stability, one which does not raise people's aspirations unrealistically and which does not impose any costs to businesses in these times of global economic uncertainty," MEA director-general Joe Farrugia said.

The MEA also wants that payment for all maternity leave be a state responsibility. "Malta is one of the few countries where employers pay for maternity leave, and this is also crating a disadvantage for women seeking employment. The full burden of maternity leave should be shifted to government over a number of years," MEA said of the recent extension in maternity leave.

The association also said school hours should be extended to cater for working parents with children in primary and secondary schools, and for childcare to be made affordable to encourage stronger female participation. "Government should increase the current incentives to families wanting to avail themselves of childcare facilities."

The MEA called for added green incentives for the installation of photovoltaic technology by households and businesses.

"Malta should invest heavily in alternative energy to reduce its current dependency on fossil fuel energy. The incentives for the installation of solar and photovoltaic energy systems have been popular with households and businesses, with a strong take-up for the schemes offered. These should be extended for a further diffusion of alternative energy. Similar schemes could be introduced for water conservation."