PN wants 10% tax on part-time work and overtime

Adrian Delia says that the divide between the haves and have-nots is growing as the PN presents 100 budget proposals

Adrian Delia has warned that the gap between the haves and the have-nots has widened
Adrian Delia has warned that the gap between the haves and the have-nots has widened

The Nationalist Party wants part-time work and overtime to be taxed at 10% as it lays out a series of proposals in a pre-budget document released today.

The measures are intended to leave more money in people’s pockets and help alleviate those on lower incomes.

Incidentally, both proposals were promised by the Labour Party in its electoral manifesto.

The proposal is one of over 100 put foward by the PN in a pre-budget document which was presented to the social partners on Friday. It contains proposals that cover areas from Brexit to taxation, government expenditure, and sustainability.

Adrian Delia warned that the split between those who have everything and those who have almost nothing was growing.

The PN leader said there was a dichotomy in Malta, with economic statistics saying one thing but many people living a different reality.

"The document does not contain only criticism and shows the Opposition is ready to do its part for the necessary changes to happen now and not in the future," Delia said.

He underlined that the environment should not be a victim of the country's economic success but serve as an incentive for sustainable development.

PN MP Mario de Marco, who fronted the document, noted that the party had examined the international scenario and went on to analyse each local sector and offer proposals.

"Economic growth shouldn't be the only measure of how the Matese people are doing," de Marco said.

The party's economy spokesperson highlighted that the number of people at risk of poverty, in terms of absolute numbers, was rising not decreasing.

He said the proposed tax measures would benefit people who depended on part-time work and overtime to boost their incomes. The PN is proposing that the tax rate on part-time work be reduced to 10% from the current 15%.

The party is also proposing that all overtime above 40 hours per week should be taxed at a flat rate of 10%, rather than be calculated with the basic pay and taxed at normal income tax rates as it is today.

The below are some of the pre-budget proposals which the PN has brought forward:

  • Adequate old age income and pensions should be included as a baseline social rights
  • NI paid by an individual between the ages of 16 to 18 could be used to compensate for any missing NI payments made during the subsequent years of employment
  • Income tax on overtime and part-time work should be capped at 10%
  • All work contracts should by default include employees' basic rights
  • Massage parlours which are being used for illicit purposes such as prostitution and human trafficking and are increasing sexually transmitted diseases, should be regulated
  • The right to institute actio popolaris in all environment matters should be introduced
  • The Environment Resources Authority should be given veto power in Planning Authority board decisions in cases of major development applications in environmentally sensitive localities
  • A carrying capacity study for Malta, in light of sharp population increases, has to be carried out
  • A skyline policy for the whole country should be established, following proper consultation
  • Legislation should be introduced to recognise that unreasonable noise is a form of pollution, to prevent and control those sources of noise that are not regulated, to provide guidelines to determine unreasonable noise levels, and to establish a Noise Control Board to deal with all issues related to noise pollution
  • A mass transportation that will reduce travelling time between Malta’s main zones be introduced
  • A carbon-neutral transport system for all government employees should be considered, particularly for those working in Valletta
  • A long-term plan to help stop the brain drain that is plaguing Gozo should be developed

More in Budget 2020