Robert Abela promises grant for self-employed to lower NI costs

A new Labour government will give self-employed individuals a grant equivalent to five percentage points of their NI contribution, Robert Abela said on Thursday evening.

This will result in savings of between €630 and €1,450 per year, the Labour leader said.

In this way, he added, the self-employed would effectively be paying NI at 10%, like employees. This proposal will cost some €20 million per year.

Speaking in Mellieħa on Thursday evening, Abela also proposed that pensioners who sell their home to buy a smaller one will also qualify for the First Time Buyers scheme and be exempt from paying stamp duty. 

This means that parents with more than one child, those who have separated or divorced, and seniors buying a smaller property will now be exempt from stamp duty under the Our Next Home scheme.

Speaking for the PL, Abela emphasised the importance of accurate costings on electoral proposals, which he insisted are not done cosmetically, but as a part of larger plans. 

"You can’t just throw proposals around," he said, explaining that if costings are incorrect, it impacts a party’s entire electoral manifesto, along with every budget released under a legislature. 

Abela was reacting to the tax cut proposed by the PN on Thursday which was flagged by Finance Minister Clyde Caruana for a €250 million discrepancy.

"When I was listening to Adrian Delia speak, I was wondering if it was purposeful or if the PN is genuinely that incompetent," he said. "They aren’t even capable of costing their proposals, let alone implementing them."

Abela drew a distinction between Opposition Leader Alex Borg’s tax bracket proposal and the PL's super bonus, arguing that his scheme puts money directly into pockets without it being subject to any taxation at all, describing the choice as "strategic" since it excludes a large number of foreign workers.

The prime minister also referenced the PN’s proposed Mediterranean Maritime Fuel Hub, which he said is also "completely off-track," describing their electoral campaign as "astounding" and a "cacophony."

The fuel hub has received backlash from environmental NGOs over the potential impact on marine environment, with Abela himself claiming that the idea came from "country’s biggest fuel contrabandist." The PN has denied the allegations and Abela has refused to name the fuel smuggler or say where he met him.

Abela framed the election as a simple choice on competence, "nothing more, and nothing less." He also issued a direct plea to disillusioned youth to listen to his proposals before sitting out the vote.

The event was also addressed by PL candidates Olaf McKay, Jesmond Bonello, and Abigail Camilleri, who called on people, specifically youths, to vote for the Labour Party on 30 May.