Budget proposals

The government should ensure that the next budget will focus on matters such as the cost of living, work, housing, transport and energy.

As regards water and electricity bills, Żminijietna - Voice of the Left believes that the government's proposals will increase inequality in Malta, which is already characterised by high inflation rates. The government should ensure that wasteful practices, and not normal consumption rates, are penalised. The basic energy rate should remain affordable to low and middle income earners.

We urge the government to compensate for the cost of living and improve conditions of work of different categories of workers. Amongst other policies, this requires an active wage policy based on good working conditions, productivity increase, compensation for inflation, wage increases (including the minimum wage) as well as a redistributive element. This also requires family-friendly policies such as accessible and affordable child-care centres.

As regards taxation on cars, we urge the government not to counterbalance any projected shortfalls in revenue on car tax by adding burdens on low and middle-income earners whose purchasing power is limited. We believe any shortfall of revenue can be made up through progressive means, for example by increasing taxation on luxury cars which consume excessive amounts of fuel and by taxing persons who own an excessive number of cars for private use, over and above a reasonable and just maximum number set by the government.

The state should assume greater responsibility in ensuring accessible, cheaper and efficient public transport, which in the long run should provide the best solution against pollution and traffic congestion.

As regards housing, Żminijietna believes that this is a social issue that should not be dictated by market forces. Malta requires policies which result in more affordable prices. This requires the continuation of subsidies on loans for the purchase of first properties and the provision of affordable social housing by the state. We support proposals in favour of financial aid to those who are buying their first property and to those who are facing economic difficulties such as loss of employment and entering pensionable age.

The government can make up for increased expenditure by introducing taxes on companies making windfall profits from financial and gaming sectors; proper mechanisms for the polluter-pays principle; by measures against tax evasion; as well as by wealth generated from social proposals which result in more money in people's pockets which will be injected in the economy and indirectly in the state's coffers.