PN tax cuts proposal to cost €46 million

The Nationalist Party's proposed tax cuts are estimated to cost the country about €46.58 million (Lm20 million), Prime Minister Lawrence Gonzi said yesterday.

Dr Gonzi said that, according to estimates, the government would be generating so much wealth and economic activity that it will recoup the amount within two years. He also insisted on the 2010 target that the government is adamant on keeping: Closing the financial year with a surplus.

Flanked by his wife Kate and surrounded by a group of youths, Dr Gonzi was speaking during a PN activity in San Ġwann, which forms part of the ninth district where he will be contesting the general election for the first time.

He explained that the revision of the tax bands announced in the 2008 budget are estimated to cost the country nearly €34 million. The main aim was to offer incentives and reward people for working more while, at the same time, stimulating economic activity across the board.

Referring to the Labour Party's proposal on tax-free overtime, Dr Gonzi said there were already a good number of people whose income did not surpass the tax-free threshold, including their overtime.

On the MLP's proposal to pay overtime at the normal rate rather than the present time-and-a-half, Dr Gonzi said the PN and the absolute majority of workers disagree with what was being suggested.

"Whatever we achieved, we have achieved it together and together we will continue shaping the future because together everything is possible," he said.

The event was also addressed by ENT specialist Alec Lapira, stockbroker Elaine Bonello and the president of the National Council of Women, Grace Attard.

Dr Lapira said the PN in government consistently achieved results in the country's best interest. He said the Prime Minister was accessible and listened to people, adding that he was the person he could trust with his children's future.

Ms Bonello said the proposed tax cuts would greatly benefit the self employed whose income fell within the set bracket.

Ms Attard referred to measures aimed at women, saying it gave them the opportunity to return to work.