Opposition motion on cost of living shot down by government

An Opposition motion to exempt COLA from income tax was shot down by the government on Wednesday.

Proposed by Opposition leader Bernard Grech last February, the motion called for the Government to take blame for “contributing to the increasing cost of living and price increases” and for certain measures to be introduced to better tackle the issue.

In its motion, the PN proposed exempting COLA from income tax, providing tax credits for SMEs and creating a national fund to support importers and exporters in reducing cost burdens. The motion also proposes shifting Malta’s economic model from population-driven growth to innovative, high-paying sectors.

The government in turn had put forward an amendment to the motion reframing the PN’s main arguments.

In the proposed amendment, the party’s claim that inflation negatively impacts low- and middle-income individuals is replaced with a statement that inflation is a global issue, but the government’s strategic actions have mitigated its effects in Malta.

The amendment also replaced multiple preambles with statements highlighting Malta’s stable energy prices, increased social benefits, targeted support for low-income families, and lower inflation rates compared to previous Nationalist administrations.

The Nationalist Party went on to file a counter-amendment seeking to entirely revert the government’s proposed changes and restore the original motion. It removed all government-framed arguments about inflation control and subsidies and reinstates the opposition’s critique of the rising cost of living.

Government’s amendments received unanimous approval from its benches, while all Opposition MPs voted against.

Drug law reform approved by parliament

In a separate vote, Parliament on Wednesday approved a drug reform law despite the Opposition’s 31 MPs voting against it.

The new legislation, led by the Justice Ministry, ensures that former inmates caught with minor drug possession while incarcerated will not have to return to prison if found guilty.

The reform also introduces the option of holding trials without a jury for those accused of drug trafficking.

By law, any case that carries a possible life sentence—including drug trafficking—must be heard before a jury. However, in practice, no life sentence has ever been handed down for trafficking offences.