Wednesday, 3rd June 2009

AN suggests tax cuts to curb inflation

Azzjoni Nazzjonali yesterday prescribed huge tax cuts as an antidote to inflation in the final leg of the election campaign.

Party leader Josie Muscat said VAT should be reduced from 18 to 15 per cent while company tax should be cut by 30 per cent to just five per cent.

He justified the latter suggestion on the basis that the government already allowed a five per cent tax for foreign investors, such as i-gaming companies.

While this was a good thing, as it generated employment, it should apply to all companies, he said.

Dr Muscat said both the Nationalist and Labour Party spent the MEP election campaign attacking each other and failed to address important issues like the cost of living.

"The truth is that no government has actually managed to reduce the cost of living," Dr Muscat said as he made proposals on the subject.

There was no need for the tax reductions to be immediate but they should be reduced in the long run. Reducing tax would stimulate investment which, in turn, would generate employment.

Dr Muscat also spoke about the need to reduce bureaucracy throughout the EU so it could compete better with economies such as China and the US.

On Saturday, he said, people should vote for candidates that could work in the interests of the country and not for the party they supported.

Previous article • NGOs merger benefits people with disability
Next article • Party-goer charged over ecstasy pills

Article © Allied Newspapers Ltd., printed on Sunday, November 22, 2009. This article is for personal use only, and should not be distributed.

Comments

Stephen Borg Cardona (on 4/6/09)

I wonder why Dr J Muscat suggested reducing company tax and not income tax in general ?

Sandro Pace (on 3/6/09)

The value is academic, the point is that there is discrimination between local and foreign investors. A sensible corporate tax reduction will most probably generate more employment.
AN is also for a sensible tax reduction for employees.

If the government has a will, there is much financial wastage where he can cut and trim. Never has wastage been so tangible. AN candidates are not the only ones saying that needless bureaucracy is costing us millions.

R Debono (on 3/6/09)

Isn't this ironic that the 3 middle-aged men - who are all businessmen are suggesting tax cuts.
"company tax should be cut by 30 per cent to just five per cent"....

and rightly so they advise the electorate to vote for the candidates that will work for our interests....or should they say "their" interest!

Stephen Piccinino (on 3/6/09)

If such reductions in tax cuts were to "stimulate investment which, in turn, would generate employment", then how can that ever curb inflation in the first place?