AD says government should seek to improve minimum wage

As a post-budget reaction, Alternattiva Demokratika called for the introduction of a mechanism for the periodical revision of the minimum wage.

“While the government’s introduction of social measures for people on a minimum wage is commendable, working people should not be dependent on handouts throughout their lives,” AD chairperson Arnold Cassola said.

He also said that local councils will continue to struggle when it comes to providing basic services as they have been lumped with the same financial allocation.

“There is also no indication on whether local councils will get funds from trading licenses of shops and vendors that operate in their locality.

“As for taxes, while the income tax rate has been decreased again for those in the €19,500-€60,000 tax bracket, this has meant, as AD had predicted, an increase in a host of indirect taxes. The government has also failed to address the issue of taxation exemptions for foreign corporations. After Luxembourg and Holland, the EU had already started investigating the fiscal incentives that Malta offers to foreign companies to set up shop in Malta. The issue of a level playing-field with regards to taxation cannot be put on the back-burner.”  

Cassola also said that investment in infrastructure is needed to make roads safe for alternative means of transport such as bicycles and pedelecs.

“The government is contradicting itself when it says it wants to reduce traffic and at the same time says it wants to create more parking spaces,” Cassola said. “More parking spaces generate more traffic. It is clear the government has no vision when it comes to sustainable mobility.”

However, Cassola commended the gradual weaning off social services as opposed to an abrupt cut, the additional financial aid to working parents with young children, the increase in payments for maternity leave, the removal of eco-tax from electronic products, the enforcement of disability-employment laws, and the increase in direct taxation on cigarettes and spirits.

“The tax incentive to business companies that donate over €2000 to the Community Chest fund is a positive measure, but it is unfair that this is limited only to business people,” Cassola added.  “It should be extended to all. Even donations to registered NGOs should be tax exempt.”

“The 15% rebate for those investing in private pensions (third pillar) is also commendable, but this is meant only for those people who can afford such pensions.  The government should have concentrated on second pillar pensions, which are shared by the government, the employer and the employee.”