PN tax cuts to cost €46.58 million, PM says

G. Guillaumier

Feb 8th 2008, 15:18

While every nation is concerned about global warming and trying to cut on emissions and use of fossil fuels, Sant is actually proposing to subsidise the surcharge rather than use the money to find alternate energy sources. Subsidising the surcharge will increase energy consumption, thereby going against all the climate control efforts of most countries. And you trust a 'leader' who would not heed these matters just to look favourable?

anton cassar

Feb 8th 2008, 13:44

Daphne,I am just making my point that people prefer lower bills across the whole spectrum of society. Labour does not need my defence.What is best for the people we shall see after the March 8.

Daphne Caruana Galizia

Feb 8th 2008, 11:15

Your correspondent Anton Cassar needs to learn some basic economics. Cutting income tax rates is a wealth-generation measure that benefits the entire economy. Subsidising electricity consumption in private homes (that is what cutting the surcharge amounts to) while still paying high prices for petrol has a negative effect on the economy. The electricity still has to be paid for: if we don't pay for it directly, we'll pay for it indirectly, through increased taxation, which affects the economy negatively. The economy always does badly under Labour (this is not my opinion, but recorded history) because Labour has this obsession with looking after the pennies in the belief that the pounds will then look after themselves. They don't.

Martin De Bono

Feb 8th 2008, 10:53

Mr. Cassar, your comments are not fair. The tax cuts (as stated)will benefit mostly the lower and medium earners. The surcharge reduction will also benefit the lower and medium earners , but it is not realistic because the in reality power bills all around the world are increasing, but hey in Malta we are special, they are going down !!! I would much rather have my income tax reduced instead of my surcharge. This way it gives me a direct incentive to make efficient use of the electricity I use.Martin DeBono (Attard)

joseph Briffa

Feb 8th 2008, 10:22

The PN's proposed tax cuts will definitely boost the economy as the beneficiaries will spend most of their savings, thereby generating more business.
Quite a chunk of this €43m will be recouped immediately in the way of VAT. The MLP proposal to reduce the energy surcharge will be a boon to industry not to the individual families who will benefit only marginally; the 33 000 families who are already exempt from paying any energy surcharge will not benefit at all, while the other householders will save maybe a couple of €100 a year, a mere pittance. The exemption of overtime earnings from tax should benefit industry and improve competitiveness of local products in foreign markets, especially if overtime rates will be at the normal rates rather than at the present 1.5 time: this would also mean that people who do overtime will take home less money from overtime work than at present given the recent tax cuts introduced by the PN, not to mention the further proposed tax cuts if the PN is returned to power. Somebody earning €5/hr at the normal rate would today earn €7.50/hr at overtime rate, pay 15% income tax (if his total wages are over €11 000 p.a.) and take home €6.40/hr, or , if his total earnings are less than €11 000 p.a., take home the full €7,50: while he would take home only €5/hr if the overtime rate is reduced to normal rates and is exempt from tax as the MLP is proposing. This would reduce rather than increase earnings from overtime. The beneficiary here would be the local industry not the worker.

anton cassar

Feb 8th 2008, 09:14

So Dr Gonzi has 20 million Liri to give to the few.I thing it makes more sense in reducing the surcharge which will benefit the many and remove tax from overtime.And please stop asking Labour from where the money is coming from.Or it seems that only Dr Gonzi has the answer ?