Pre-budget document: 'premature to commit to tax cuts'
The Prime Minister said today it was premature to make a commitment about tax cuts in the forthcoming budget since the price of oil had risen 45% since the election.
He was replying to questions after launching the pre-budget 2009 document, entitled “Together for a sustainable future”.
Dr Gonzi said the economy was projected to grow by 3 percent by the end of this year but Malta, like the rest of the world, was facing problems from galloping oil prices.
He said the government’s priorities remained education, employment and the environment.
The government, he said, wants more investment in alternative energy.
On the proposed car registration tax, Finance Minister Tonio Fenech said this will be replaced by a system that is based on the polluter-pays principle and which seeks to address the country’s environment and congestion challenges. Vehicles, he said, would be taxes on the basis of their emissions and size.
He said the government was proposing to further assist SMEs and promote further investment in IT and the infrastructure, notably the roads
The focus in the health sector would be on improving the primary healthcare system.
Replying to questions, Dr Gonzi said the government is carrying out a study on the impact of the surcharge on families in order to serve as a platform for the revision of the water and electricity tariffs.
Mr Fenech added that the increase in water and electricity prices was not having an effect on Malta’s competitiveness. He also ruling out the privatisation of Air Malta.
On income tax cuts, Dr Gonzi said the government was committed to reducing taxation, but this had to be seen against the economic situation. It was premature to make any form of commitment for this budget since oil prices had risen 45% since the election.
The pre-budget document is available on the website www.budget2009.com.mt.
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David Wain
Jul 13th 2008, 11:58
@Paul Sturrock, demonisation?? And you're speaking about being blinkered? This is the paranoia your very own party spoke about in the post-defeat report.
Sant is the guy whose vision for Malta consisted in a model he came up with in some inpired!? moment .... Svizzera fil-Mediterran (later re-born as "Partnership") a model which the EU consistently told him was not possible. He removed VAT and replaced it with a taxation system which set us back many years. He declared that "partnership" had won the referendum, an irresponsible and dangerous declaration which could have thrown our country into a civil war had labour won the 2003 election.
These are hard facts Paul Sturrock... you had a leader who turned MLP into a right-wing, anti-EU party with statements like "il-barranin se jehdulna xogholna, etc). AS wasn't just unpalatable to die-hard NP supporters but to everyone except the dyed-in-the-wool, torca-brandishing labourite.
Jury still out on Muscat. I sincerely hope I am not prevented from voting for him. Had Paul Sturrock read my entry properly, I wrote that the signs are good with JM but you must admit that it is too early, unless you are the Paul Sturrock type that is..
Paul Sturrock
Jul 12th 2008, 22:20
@David Wain
As one of the gullible PN voters you are reaping what you sowed last March. Sant's demonisation process must have left a lasting impression on you and it seems as if you've already subscribed to the blinkered anti-Muscat campaign spearheaded by In-Nazzjon/Net.
David Wain
Jul 12th 2008, 19:30
Paul Sturrock, while everyone in his good senses feels cheated, had i to go back in time to March, even had i known that this promise would not have been kept but with the frightening possibility of Alfred Sant being PM, I would have still voted PN. This arrogance is all down to Labour not having been able to provide an alternative for many years.
The initial signs fom Joseph Muscat are good, let us hope that an alterntive is there in 5 years time
Paul Sturrock
Jul 12th 2008, 18:42
What a stupid excuse by the PM! In March it was perfectly clear that the price of oil was on an upward trend and it still is and will continue rising for some time. So why make electoral promises on tax cuts that will not be implemented? This is what is meant by politics being dirty, when it is practiced by political hypocrites who are prepared to go to all extremes as long as they get your vote. All you PN gullible voters deserve this and worse but Malta deserves much better.
David Wain
Jul 12th 2008, 18:18
This is incredible... wasn't there a clear electoral promise which specifically spelt out the revision of income tax bands? I do not remember Dr. Gonzi ever saying that all depended on whether there would be rises in oil prices. A clear tactic of trying to attract the disgruntled over-taxed middleclass wage earner to the vote, to then take him for a ride all over again.
That the increase in fuel prices could not be forseen a few months ago is a joke and an insult to the intelligence of all those who voted for this government.
Let us hope that I am wrong and that Dr. Gonzi's clear per-election promise is kept. However Dr. Gonzi the damage-limitation startaegy has already been set in motion, hoping (in vain) that we all forget by the time the actual document is published.
Thanks Dr. Gonzi