Busuttil blasts feel-good factor: more taxes, no new jobs

Opposition leader Simon Busuttil poured cold water over Labour's first budget in the legislature, saying Joseph Muscat had increased taxed and created no new jobs.

Speaking minutes after the finance minister Edward Scicluna ended his first fully fledged budget, Busuttil hit out at the Labour government's decision to "phenomenally increase €170 million in taxes" which he said would work out at €400 per capita.

This increase included €72 million in new indirect taxes, the PN leader said, adding that the measures announced by the finance minister would come at a price.

"The government is trying to give out goodies but it will come at the cost of the taxpayer," he said, noting that the increase in taxation - most notably amongst car taxation - would "more than make up for the reductions in the energy bills."

In a brief press conference held in the President's Palace, Busuttil - who stood in front of his parliamentary group - insisted that the tax increases were in clear breach of the Labour Party's electoral pledge not to increase taxation.

Asked how a PN government would have increased revenue, Busuttil said that this would have been achieved by implementing the party's electoral programme which was centered on economic growth and job creation.

Busuttil also said the budget lacked measures on job creation. "We were eagerly waiting for concrete plans on job creation, however there was no mention of it. The few measures mentioned were the ones this government inherited from the PN government. The only new idea mentioned was the sale of passports, which is clearly opposed by the majority of people and against which we will fight tooth and nail."

Stressing that the 2014 Budget would not create wealth, Busuttil said that employment affected everyone, and with unemployment on the increase action needed to be taken.

"Unemployment is increasing month after month, with a 13% increase registered in September over the previous year. These are persons not numbers and therefore we expected the budget to address this and present us with an economic vision for the country's future."