PM: Government working on budget which will see no increase in taxes

The government is already working on a budget which will see no increase in taxes, the Prime Minister Robert Abela revealed on Sunday.

“The next budget should build on last years’ budget, which also saw no increase in taxes,” he said on party radio station ONE Radio.

Abela said that as other European governments increase their taxes on energy and fuel, while raising the VAT, this administration is already working on next year’s budget, which will see no tax increases.

“The decision we are taking stem from dialogue with social partners,” Abela said. “We believe that our financial targets are met when we invest in people.”

The PM was also speaking on credit rating agency Moody’s ratings on Malta, after it affirmed the country’s score at A2. It also changed it outlook to negative from stable over the FATF greylisting of Malta’s financial sector.

“The rating shows us the country has good leadership and that it is taking the right decisions, but it also shows us where we have to improve,” he said.

He also called out the Opposition for its “only consistency in finding nothing good in the country”, following its reaction to Moody’s rating.

“This is the best rating the country has achieved in the last ten years,” he insisted.

COVID-19

Following the lifting of more coronavirus restrictions earlier this week, Abela said the decision has been met well by a number of stakeholders, including employers.

“We have managed to strike the balance between lives and livelihood,” he said.

The PM also welcomed the stabilisation of coronavirus hospitalisations, saying that if the situation continues as it is, it will make way for more restrictions to be lifted.

He also said government has continued to invest in people, despite the challenges brought about by the pandemic.

“Just this week we announced the micro invest scheme, which will see over 7,000 businesses benefitting from tax credits for investing,” he said.

After plans to regenerate the Grand Harbour were announced earlier this week, Abela said the project will be this government’s historical stamp on the country for years to come.

“The Grand Harbour is a port which has wide-ranging economic activity – from industrial to touristic activity – and government wants to ensure that the area’s potential is reached,” he said.

He said the area, which he regarded as the nicest port in Europe, should become “one of the nicest in the country.”

“The project spans over a number of ministries, and we are determined in implementing it,” Abela said.

He also said government is looking to continue in bolstering the maritime sector.