Clyde Caruana flags €250 million discrepancy in PN tax overhaul

Finance Minister Clyde Caruana disproved the Nationalist Party’s recently proposed overhaul of tax bands, insisting that the numbers "do not add up".

In a press conference on Thursday, Caruana dissected the proposal, which claims that under a PN government each of the 300,000 workers in Malta will be guaranteed a minimum of €1,200 in savings yearly at the government’s total expense of between €110 million and €130 million.

“I ask everyone watching to take out their calculators and multiply 300,000 by 1,200,” Caruana said. “The answer you will get is €360 million,” he said, adding that under closer scrutiny the actual numbers go up to €400 million. 

He was reacting to the tax cut proposed by the PN this morning which will see all tax bands being widened substantially.

The minister said that families cannot trust the PN’s proposals as credible, insisting that the party will either break its promises or seriously damage Malta’s finances.

Caruana claimed that this inconsistency strongly contrasts with the Labour Party’s responsibility and credibility when presenting proposals that are studied and costed.

The conference was also addressed by Justice Minister Jonathan Attard, who announced a series of proposals targeting family businesses, with specific focus on the transfer and succession of such businesses between family members.

Attard said the PL government would reduce the stamp duty for family businesses from 5% to 1.5% when this is transferred between family members.

Additionally, Attard said that if one or both parents pass away during the succession process, the government will recognise the initial commencement date of the transfer, allowing the transaction to be legally finalised within a year of their passing.

The PL measures came after the PN proposed the removal of all inheritance taxes on property, including family businesses, as well as the removal of all taxes on property donations.