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Updated: No reason for government to delay tax cuts - PL

Updated - Adds PN reaction

The Labour Party insisted today that savings made by the government through the elimination of various subsidies meant that it had no justification for delaying the tax cuts promised at the general election.

Labour finance spokesman Charles Mangion, referring to an interview given to The Sunday Times by the finance minister, said the governemnt was conducting economic planning according to the electoral cycle in the interests of the PN.

Prior to the last general election, he said, the PN promised to reduce the top rate of income tax to 25%.

Since then the government had taken measures which drastically reduced the people's purchasing power. The government had also saved €80m by removing the subsidy on water and electricity and made further savings by closing the dockyard.

Yet it was continuing to put off the tax cuts.

The argument that no tax cuts could be given because of the international financial crisis did not hold water since the Maltese financial institutions remained strong.

Dr Mangion also asked a series of questions which he hoped the minister would reply to.

He asked on what economic and fiscal criteria had Lawrence Gonzi promised to reduce the top rate of income tax to 25%;

Was the tax reduction compatible and consistent with the medium term objective for Malta established by the EU, which called for a budget surplus in order to reduce the national debt?

Could the minister confirm that the fact that the Stability Programme 2009-2012 did not incorporate a tax cut mean that there would not be any tax cut?

Dr Mangion also observed that Mr Fenech had declared that with the euro changeover, the Central Bank passed on to the government €40m from reserves. Since public record showed that in the years 2007-2008 the government only received €29.8m and €28.7m, could the minister say how this income was classified?

PN REACTION

The Nationalist Party in a reaction said Dr Mangion's statement showed how cut off the Opposition was from reality. The Labour spokesman was ignoring the fact that since the general election the world had seen an explosion in oil prices, a banking crisis and the worst recession in eighty years.

The government had wisely invested in Maltese industry in order to enable Malta to ride the storm. The contrast now between what was happening abroad and in Malta could not be sharper. In Malta, foreign investment was flowing, the government deficit was being narrowed, the economy was picking up, the banks were among the strongest in Europe, and the government was helping the people invest in alternative energy.

Abroad, some countries had unemployment of 20 per cent, salaries and social services were being cut, taxes were rising and governments were begging the IMF for assistance.

The PN also pointed out that when Dr Mangion started his political career, at the time of the Labour government, the top rate of income tax was 65 per cent.

And as for the energy prices, Dr Mangion had been part of the Labour government which imposed extraordinary tariffs when the price of oil was just $12 a barrel, the PN said.

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Joseph Cauchi

Jul 28th 2010, 21:37

@ J. Mifusd,

The VAT is in replace of Customs Duty, which in those days was 47%+ on most imported items and in some instances it was also 110% on certain items.

JC.

E Gatt

Jul 28th 2010, 22:17


@ J. Mifsud

True we now pay 18%VAT on many goods and services we consume (we also pay reduced rates of 5% and 0% on many other items such as medicines and food).


You forgot to mention the exaggerated customs duty we used to pay on the limited goods the Almighty Great Socialist Leader allowed us to consume.


Today, people are treated like mature grown ups who are responsible to a greater extent for planning their own lives and futures. Today we are all free but some people evidently feel nostalgic for the days when freedom, like many other goods and services under a MLP government, was limited and controlled.

Freedom is priceless my friend.

P Refalo

Jul 29th 2010, 00:36

Vat is the most justice TAX. We pay according to consumption. So if we do consume so much we have to pay for that amount.

While, Income Tax is one of the most injustice tax cause governments impose tax on our ABILITY



E Gatt

Jul 28th 2010, 22:03

@ C Camilleri

Sorry, you're mistaken.

The government is committed to reduce tax in this legislature but not in the first budget – still 2 ½ years to go. In the meantime you may have noticed that the world has suffered a major recession.

See the full PN programme at:
http://www.pn.org.mt/content/docs/programm%20elettorali%20-%20text.pdf

http://www.pn.org.mt/content/docs/Iva%20Flimkien%20Kollox%20Possibbli%20%20-%20English%20Summary.pdf

P Refalo

Jul 29th 2010, 08:40

2. Income tax will be reduced through the widening of tax bands. The thresholds of
when tax is paid at 15% and 25% will be raised. As a result the number of persons
who do not pay income tax will increase as will those who will pay 15% instead of
25%.
3. The maximum tax rate will be reduced from 35% to 25% for those earning up to
€60,000 (Lm 25,758).

these were the proposals in the PN electoral programme, but one must be fair that nowhere is mentioned that its in the FIRST budget.

P Borg

Jul 28th 2010, 22:41

Sur Saliba... parir zghir...meta ma 'ssibx xi tghid l-ahjar hu li ma tghid xejn!

A. Grech

Jul 28th 2010, 20:48

@ Anthony Castillo/ Dark ages the 70's and 60's Mr. Castillo? And what do you call the 60's?
IL-MEJU EVU.

Christopher Ripard

Jul 28th 2010, 22:47

Ix-'xejn' tal-PN = miljuni ta' investiment, sistema tat-telecommunications kompletament gdida, sptar gdid, ajruport gdid, triqat godda, power station gdid, vapuri godda (flok braken) ghal Gozo Channel, impjanti ta' reverse osmosis, skejjel godda, MCAST gdid u mill-gdid, sports complexes kullimkien. . . Ghandek il-memorja daqsxejn selettiva, sur Massa!

Fuq wahda naqbel mieghek: il-poplu zgur mhux bahnan, ghax warrab lil lejber 6 darbiet fl-ahhar 7 elezzjonijiet.

Anthony Borg

Jul 29th 2010, 06:54

@ Sur Massa - naqbel mieghek. Il-poplu mhux bahnan. Tant ma huwiex bahnan, li b'dawn il-weghdi kollha li qiehed tghid int mhux imwettqa ilu jtella lil PN sa' mill- 1981 ( iva mil-1981, tahsibnix hadt zball ). Meta bhal ma jaghmlu l-popli kollha tad-dinja, fl-1996 ha cans u tella lil- MLP, il-poplu induna x'inhi l-alternattiva u b'sahha rega tella lil PN wara biss ftit xhur. Veru li certu weghdi ghadhom ma twettqux, izda f'dan il-pajjiz saret rivoluzzjoni ta' livell ta' hajja u llum nistghu niftahru li bis-sahha tal-mentalita' u vizjoni tal- PN, jiena u inti qeghdin nghixu f'pajjiz progressiv u mimli b'opportunitajiet. Issa affarik jekk inti tippreferix mod iehor. Il-poplu mhux bahnan !

G.Portelli

Jul 28th 2010, 21:35

Nice one Jesmond. 5 star.

A. zahra

Jul 28th 2010, 18:32

The finance minister will implement his promise once the effects of the international banking crises and the resultant recession which has almost broken the back of our largest employer and exporter are no longer felt.

Jesmond Abela

Jul 28th 2010, 18:27

Stand to be corrected……. We received the money from those who damaged the theatre(not recently but years ago). What you have to ask is where the money gone!!!!!

I am sure that ex labour party leader can give us a descent reply.

N.Grima

Jul 28th 2010, 19:18

FYI, not only did we receive compensation as already pointed out, but the German Government offered to REBUILD the theatre, providing both MATERIAL and LABOUR!! Yet, Mintoff decided to turn down the offer because, he said, that would, somehow, in some sort of distorted fantasy, damage the Maltese worker! Why comment without knowing the facts?!

C Taliana

Jul 28th 2010, 19:06

I voted for something which is still not being given. If the Govt has found funds for 80M+ to build a theatre and a parliament I deserve what I was promised.

Manwel Debattista

Jul 28th 2010, 21:39


" the times of TONN TAZ-ZEJT Labour's biggest feats".

I have to quote this insulting joke by George Cremona to show how low people like him go in order to justify their warped knowledge of political history.

Go on George, give us another one of your silly jokes. We can all do with a laugh at your expense.


J.Kawash @ George Cremona

Jul 28th 2010, 22:16

With all due respect, if you don`t like reductions in food prices, no wonder you`re defending the said party. Regarding infrastructure, yeah right, pot holed roads, overlaoded and anitquated power stations and after a couple of minutes of raining, B`Kara and Misda residents have the shock of their lives thanks to overlaoded and clogged rain water pipes . Regarding investments, You suddenly forgot the dozens of factories and companies that opened up in Malta in the `70s, you seem to forget the " Ghasafar tac-comb" and the party which voted against evrything the Labour proposed.You are right about the transition though, we`ve come from an era where the Govt. would give you free land and housing and which gave wage increases and modern factories to a Country with 4 billion euros in National Debt, some 7,000 unemployed vs. 8,000 foreigners employed here, all assest sold for peanuts and huge apartment blocks that nobody is buying, Public Transport that has gone down the hill, well I think you rest ...

Charles J. Buttigieg

Jul 28th 2010, 17:41

XOGHOL GHAL KULLHADD FI ZMIEN TLETT XHUR, was not a part of the MLP's 1971 electoral manifesto. Check your facts right.

a.attard

Jul 28th 2010, 18:19

@Charles Buttigieg.........
............ u veru sur Buttigieg ghax taht l-mlp bqajna bla xoghol, anzi jekk l-Università kont nistudja medicina, imponewlna nifthu t-trinek mhux pazjenti halli jkollna l-esperjenza!

Charles J. Buttigieg

Jul 28th 2010, 17:28

How old are you? Or were you thinking about something else?

Kevin Borg

Jul 28th 2010, 18:25

Sur Buttigieg we were thinknig about the famous budget tal-Qawsalla !!! Do you remember those budgets were the minister for finance used to tell us in all solemnity that the price of a can of tuna will be reduced by 1c?

Hallina Sur Buttigieg. Every time someone mentions those days you crop up and try to doubt what we say. Do you remember the times when we used to buy a mars bar from under the counter as if you were buying something illegal? Do you remember when we couldnt buy a colour TV set?

Hallina Sur Buttigieg. To be fair we are not living in heaven but its far more better than that socialist regime we were under at the time. And please I am old enough to remember well !!!!!!.

Go on Sur Buttigieg and continue reading some socialist publication from the glorious times and leave us discussing todays politics.

Keith Goodlip

Jul 29th 2010, 09:18

Nice Paradox Mr. Borg

J Mallia

Jul 29th 2010, 09:49

@ Kevin Borg...........Yes I remember 1c reduction " fit tonn taz zejt" u ic "cikulata Mars min taht il bank"..........But I remeber the 120 ft x 23 ft plot of land which I bought for Lm 2500 and the 0.75 % interest loan from Lohombus bank...........And thanks to Mintoff ,today I live in my own house.....Halluna nejxu, dejjem thambqu fuq ic cucati u ic cikulata u it television tal kulur. !!!!

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