Finance Minister hints at higher tax refunds next year

Clyde Caruana hints at higher tax refunds next year as Labour’s last budget to fully implement electoral pledge will be presented in seven days’ time

4 October 2021, 10:30am
by Kurt Sansone

2 min read

Finance Minister Clyde Caruana

Finance Minister Clyde Caruana has hinted that he may announce higher tax refunds next year when he presents the budget today week.

Tax refunds with minimum and maximum thresholds are disbursed to all workers who earn up to €60,000 as part of an electoral pledge made by the Labour Party in 2017.

The minimum threshold for 2021 was set at €45 for those who earn most and €95 for those on lower wage rungs. However, the electoral pledge had set much higher thresholds – a minimum of €200 and maximum of €340.

Asked on Monday morning by MaltaToday whether the government will be honouring its pledge to the full and raise the refund thresholds, Caruana smiled and urged the newspaper to wait for Monday’s budget.

The refunds for this year were paid out last month and around 250,000 workers collectively received €17 million. In the previous three years, the minimum and maximum amounts stood at €40 and €68.

The Finance Minister was present for the unveiling of the budget implementation document prepared by the office of the principal permanent secretary. The report shows that 79% of budget measures for this year were implemented.

The budget that Caruana will present on Monday is his first and the administration’s last.

“We will recount a story how this country with all the difficulties created by the pandemic but with determination implemented measures to save the country that allow us to present a positive package of measures for next year,” Caruana said.

He said employment figures painted a positive picture. “Unemployment is lower than before the pandemic. The employment rate is higher and the rate of inactive individuals is lower. These point towards an active labour market that is crucial for the wheels of the economy to continue turning,” he said.

On Air Malta, Caruana said talks with the European Commission to approve a State aid package were ongoing and the budget will include financial provisions for a rescue package.

Kurt Sansone is Executive Editor of MaltaToday. He was formerly deputy editor of MaltaTod...