Advert

The Budget at a glance - top rate of income tax cut, children's allowance rises

Video: Mark Zammit Cordina

The top rate of income tax will be reduced and children's allowance will rise, Finance Minister Tonio Fenech announced in the Budget speech this evening.

The following are the main Budget measures:

* People earning up to €60,000 will see their tax rate drop to 32% next year from the current 35%. The rate will drop further to 29% in 2014 and 25% in 2015.

* The minimum rate of children's allowance will rise by €100.

* Cost of living wage increase of €4.08, which pensioners will also also be given in full.

* €300 allowance to elderly persons extended to those aged 78 and over.

* 30% cut in registration tax on Euro V vehicles and an increase of 10% in tax on Euro IV vehicles. Tax is to be removed or reduced for motorcycles.

* Car scrappage scheme reduced.

* Feed-in tariffs for PV users who sell electricity reduced, but term is extended.

* Reduced Gozo ferry fares for those who travel in winter and stay in Gozo for at least one night.

* Duty on petrol, diesel, up by 2c per litre.

* Average price of cigarettes to rise by 20c to 30c per packet.

* Property buyers to pay less stamp duty on the purchase of their ordinary residence.

* Stamp duty on houses inherited from parents removed.

* Stipend introduced for those who do voluntary work after tertiary education.

* Higher stipend for apprentices.

* Higher spending on sports including plans for a Rugby ground.

* Plan to help households save water. Assistance for repairs to wells, water systems in scheduled buildings.

See full details on these and other points of the Budget speech in the Budget section below.

Advert

182 Comments

Post comment

Please see our new Comments Policy

Comments are submitted under the express understanding and condition that the editor may, and is authorised to, disclose any/all of the above personal information to any person or entity requesting the information for the purposes of legal action on grounds that such person or entity is aggrieved by any comment so submitted.

At this time your comment will not be displayed immediately upon posting. Please allow some time for your comment to be moderated before it is displayed.

For more details please see our Comments Policy

Your User Profile is incomplete.
Please click here to complete your profile before posting comments.

Eddy Privitera

Nov 29th 2012, 16:23

Angleo Vassallo: Isma l-clip fejn waqt li Gonzi jinstemgha jghid li min hu fuq il-minimum wage mhux se jhallas taxxa, Tonio Fenech jinstema jghidlu " jintlaqtu " !!!!!!!!!!! ovvjament dan mhux se tisimghu fuq NET TV jew TVM ! Dwar il-"pirmli" ergajt irrispondejtek il-bierah. Izda int taghmilha bir-ruhek li ma tafx . U terga tirrepeti l-istess kliem.!

Eddy Privitera

Nov 29th 2012, 16:25

Angelo, ruhi, jaqaw ma smajtux lil Dr. Muscat jghid li l-mizuri posittivi tal-Budget, gvern laburista se jwettaqhom kollha ?! id-differenza hi li GONZI IWIEGHED BISS, DR. MUSCAT IWETTAQ !

Eddy Privitera

Nov 29th 2012, 16:27

Angelo Vassallo: Dan il-Budget ZGUR se jkun record, mhux biss f'Malta izda fil-Guiness Book of Records. Ghax l-uniku Budget fid-dinja li mhux se jkun ghadda minhabba deputat tal-gvern stess !

Eve Axiaq

Nov 29th 2012, 08:42

Tax reduction ghal min studja, stinka jew irriskja biex jinvesti fuq negozju. Ghaliex le? Mela din il-kategorija thallas dejjem it-taxxi biss u tissussidja l-beneficcji tas-sigurta socjali?

Fred Saliba

Nov 29th 2012, 09:18

Doris, if you want to earn a lot, you're still in time. Go learn some USEFUL education. eg: What do you expect, an Learning Support Assistant to earn as someone responsible for Critical Live Systems? or a Doctor maybe who deal with my health?

Yes about time the ones who earn a little pay less, because we are sick of paying for your subsidies, laziness and hearing your moaning complaints!

Francis Raeymaekers

Nov 29th 2012, 10:30

Did you also tell them how much more they would be paying for their utilities than all your Maltese friends?

Brian Gatt

Nov 29th 2012, 13:21

panic mode why?

everyone expected a very good budget, actually I expected something better, PL leader not only confirmed that he will keep the framework of this budget. Dr Muscat had already informed everyone beforehand that anything good coming out of the budget will be kept. The truth is that this budget shows that the PN never changed they were always and will remain PARTIT TAS-SINJUR

Joseph Camilleri

Nov 29th 2012, 00:36

No we have not forgotten the wage freeze 1981-1987
No we have not forgotten the korpi tal pijunieri
no we have not forgotten the raise in electricity tarifs when oil price was rock bottom
no we have not forgotten the cut in education
no we have not forgotten the ridiculous fabriki parastatali
that is why we vote PN again and again.

Simon Scerri

Nov 29th 2012, 07:40

Dahhalx Religjon, mal-PN nafu fejn qeghdin, Is-Sewwa dejjem rebah, kif se jerga jaghmel il-PN!!!! Labour won't work!!

Gordon Farrugia

Nov 29th 2012, 14:59

mal-PN nafu fejn qeghdin lol - biggest joke of the decade i say!!! Corruption, squandering of public funds, inefficiencies everywhere, deficit exploding past the 5 billion mark, queues in hospitals and shortages in medicines, uncontrollable inflation in essentials, continual increases in the prices of gas, electricity, petrol, diesel...you name it... the list goes on and on!!!!!!

Brian Bonnici

Nov 29th 2012, 20:40

The truth hurts Simon Scerri!! Labour wont work is the theory of an incompetent goverment!

David Magro

Nov 29th 2012, 05:39

Hallina Tony....qieghed iferrex il-bzar...l-ahhar tenttaiv biex jirbah il-voti.

Michael Grech

Nov 29th 2012, 07:31

I hope that those who (rightly) bash Labour for not telling the electorate how it will make up for expenses it will incur if electricity and water tariff are lowered (and this includes many pseudo-leftists and greens), will ask the same questions, with the same pressing urgency and continuity, to Gonzi and his associates.

William Caligari

Nov 29th 2012, 09:49


Well done Tonio! You are for Vici Kap.!!!!

Denis Pace

Nov 28th 2012, 23:36

Excellently put

mark borg

Nov 29th 2012, 00:05

min dahhal il 15 percent VAT ! mhux il wheeler dealer li iredikola pajjizna ex ministru tal finanzi john dalli ?

C. Bartoli

Nov 29th 2012, 15:19

@ Mark borg mela insejt meta konna nhallsu 80% dazju fuq kollox li ma jinhadimx malta?

Joseph Camilleri

Nov 29th 2012, 00:38

he is gathering the pieces !

J Martinelli

Nov 29th 2012, 02:48

Fear not Toni. Eddy is taking notes from Joseph so he can parrot his pearls of wisdom all over the place.
Maybe not this time since Joseph wants to retain the Budget's framework (il-qafas tal-Bagit) and claim it's his?
Only Labour can deliver the Budget? How about the 23 or so Budgets delivered by NP govts since 1987?
No bulk buying in this Budget. No doctor' lockouts. No teachers' strikes...

Jason Zammit

Nov 29th 2012, 07:03

Love your comment ......well done

C. Bartoli

Nov 29th 2012, 15:22

@Anthea Bezzina, you cannot depend on everything from the government. Find a job and start earning a living.You are lucky enough that your children can study at University not only free of charge but also receiving a stipend. In my days and Mintoff RULED Malta all I received was compulsary study in arabic for 5 years and not able to go to the University because I had no parrinu.

Joseph Micallef

Nov 28th 2012, 22:53

ta bosta incentivi lin-nies? forsi ta lilek, imma lili ghadu ma taghni xejn.

Gordon Farrugia

Nov 28th 2012, 23:31

u lanqas lili bhala self-employed - kieku qatt niehdu xi haga ahna hlief daqqiet fuq rasna. Grazzi hafna talli ghollejtilna l-petrol/diesel u l-gas sur gvern.

C. Bartoli

Nov 29th 2012, 15:23

@Gordon Farrugia, bhala self employed dan il-gvern tak l-incentiv ta tax breaks, jekk taqra il-budget sew.

Frans Micallef

Nov 28th 2012, 22:38

great reductions to the income tax for the middle class. Well done!!

W. Cassar

Nov 28th 2012, 22:43

You mean for the high earners ... be honest!

Frans Micallef

Nov 28th 2012, 22:49

i consider the reduction to be to the middle class since it effects couples who earn more than 25k

Joseph Micallef

Nov 28th 2012, 22:55

@ Frans Micallef:

can you specify the amount of these 'great reductions'?
can you tell us when these 'great reductions' will be implemented?
can you tell us (this is the most important) whether GonziPN will keep his promise, considering that he has a track record of broken promises?

Denis Pace

Nov 28th 2012, 23:37

Dozens of beneficial measures...Read it again W.Cassar!

Gordon Farrugia

Nov 28th 2012, 23:32

lower deficit!!?? You call EUR5,000,000,000 + of debt LOW?

J. Debono

Nov 29th 2012, 06:20

@ Gordon Farrugia

Debt and deficit are not the same. Please google them before you comment.

Debt is higher as you very well said, but deficit is actually lower.

J Grima

Nov 28th 2012, 22:41

Welcome to the moon, hope you enjoy your stay.

Doreen Attard

Nov 28th 2012, 22:44

So now the pn is even copying the pl messages on the billboards. Clear signs of an ageing government, party and up to a certain extent party followers !!

Paul Borg

Nov 28th 2012, 23:06

Isn't this the exact same budget as last year ? no mention of Smart City or white Rocks or St philips Hospital or the shut down of the BWSC plant ? you honestly beleive that the PN gov. can support such promises with a 5 euro per ton increase in cement. Give me a break.

Joseph Micallef

Nov 28th 2012, 22:55

nice joke.. we need such jokes

Denis Pace

Nov 28th 2012, 23:39

and families.....The Doom & Gloom Brigade cant shadow these measures.....no matter how hard they try.
Remember......around 20% of the electorate was still undecided....now they have a better picture!


Just compare this budget to those in other European countries....where is the joke?

L Zammit

Nov 28th 2012, 23:02

If he does keep his word the consequences will haunt him forever.

Michael Grech

Nov 29th 2012, 07:33

well... he will stand in good company - those who opposed children allowance, equal pay between males and females, female suffrage and so on

Joseph Camilleri

Nov 29th 2012, 00:41

and can you please tell us what that means?

Alfred Sammut

Nov 28th 2012, 22:41

Bis-serjeta? L-anqas hadd ma jrid ikun flok il-pajjizi irresponsabbli tal-Ewropa bhal Spanja, Portugal, Italja u Grecja. Ahna daqshekk fortunati li ghandna gvern responsabbli.

Kurt Mifsud

Nov 28th 2012, 22:51

LOL @Alfred... responsabbli bizzejjed biex ha 500eur extra fil-gimgha f'butu!

Paul Konti

Nov 28th 2012, 23:54

@ Alfred Sammut.
U zgur li mhux bis-serjeta. Mary Ann Borg qed tkun sarkstikament umoruza! Ghalmenu hekk fhimta jien - u tbissimt mhux ftit ghax iz-zmien tad-dezerta niftakru tajjeb.

Ms Xixi Caruana

Nov 29th 2012, 00:38

Haha tajba!!

C. Bartoli

Nov 29th 2012, 15:26

@ Kurt Mifsud, mela insejt li Mintoff ha minn halq uliedna miljun ewro €1,000000 ghax il-power station giet mibnija Delimara!

Joseph Micallef

Nov 28th 2012, 22:56

dik il-bicca... hehe dak li ma jghidx Gonzi... ta' wara l-budget!

Denis Pace

Nov 28th 2012, 23:41

Veru sur Gonzi....KIF se trahhas id-dawl u l-ilma minghajr ma tghid liema taxxi se zzid. Imissek tisthi!

Paul Gauci

Nov 28th 2012, 22:36

You will vote PN anyway stop bluffing.

Alfred Sammut

Nov 28th 2012, 22:42

Everyone has the right to express one's opinion

Joseph Micallef

Nov 28th 2012, 23:17

Tista tivvota l-GonziPN mela ta. Inti wieħed u jien familja ta' SITTA se nivvutaw għal-ewwel darba lill-Partit Laburista.

PS: Se nivvutaw bil-qalb lill-Partit Laburista, għax aħna ma ninsewx... anke jekk Tonio Fenech talab skuża tan-nuqqasijiet li għamel GonziPN. Jien ma naħfirx.

Joseph Micallef

Nov 28th 2012, 23:18

thumbs up... agreed.

Joseph Micallef

Nov 28th 2012, 23:18

LoL... issa jintlehqu l-miri finanzjarji. Mhux malajr tinqala xi maltempata oħra ivvintata minn GonziPN?

Denis Pace

Nov 28th 2012, 23:42

Proprju huwa t-track record li jtella l-PN fil-Gvern...EDUKAZZJONI, SAHHA, SERVIZZJI SOCJALI ecc....

Matthew Tanti

Nov 29th 2012, 00:00

@ Dennis Pace - Semmi liema servizzi socjali dahhal il-PN pls??? L-edukazzjoni haseb ghaliha l-PL skola b'xejn u ghal kulhadd. Sahha - Is-sahha b'xejn anka dik ghamilha l-PL habib tieghi.

Paul Gauci

Nov 28th 2012, 22:37

20,000 euros a year salary = 50 euros savings by 2015

60,000 euros a year salary =4050 euros savings by 2015

Is this fair?

Joseph Micallef

Nov 28th 2012, 23:19

Iva.. l-oppożizzjoni nimmaġina li taħseb li kif għadhom għaddew 5 snin u GonziPN qarraq bil-poplu għaliex din kellu jagħmilha 5 snin ilu.

S. Vella

Nov 28th 2012, 23:22

@Paul Gauci

Yes it is fair.

Paul Gauci

Nov 29th 2012, 00:48

@ S.Vella That shows you against social justice. After this budget people on a minimum wage will start paying tax as well while on the other hand high income earners will save thousands of euros. This is disgusting especially if we keep in mind that Lawrence Gonzi in 2008 had promised to adjust ALL the tax bands and not only the 35% band.

Matthew Tanti

Nov 29th 2012, 00:02

Iva nibqghu sejrin fit-triq it-tajba dik li twassal ghall-bidla

Joseph Micallef

Nov 28th 2012, 23:21

Ifhem... naħseb tibża tistaqsiha lil Lawrence Gonzi din hux? :-) Daqs kemm emminniħħ fuq il-kumpanija ġiganteska brażiljana li tħaddem ħafna nies u daqs kemm kellna nemnuħ fuq SmartCity u is-7,000 impjieg hemmhekk se nerġaw nemmnu lil-Gonzi!

Frans Micallef

Nov 28th 2012, 22:37

Budget realistiku u ta sustanza li jwettaq pjan.

Matthew Tanti

Nov 29th 2012, 00:03

Xi pjan hu li qed issemmi?

Joseph Micallef

Nov 28th 2012, 23:21

.... u GonziPN jixtri!

Victor Caruana

Nov 28th 2012, 22:48

Since GonziPN tied the budget vote to a confidence vote, how can you expect that PL votes in favour of the budget??

Joseph Micallef

Nov 28th 2012, 23:22

kompli ibbla il-falsitá ta' GonziPN

Joseph Micallef

Nov 28th 2012, 23:22

I agree... well done for presenting a false budget knowing that it can't be implemented.

Victor Caruana

Nov 28th 2012, 22:48

A pre-election budget! All such budgets are positive! Wake up

Denis Pace

Nov 28th 2012, 23:44

the rich??????
Are disabled persions, Minimum wage earners, pensioners considered as rich?? You must be crazy.

Roberta Borg

Nov 28th 2012, 21:58

Ask Joseph Muscat whether it is a waste of time. He is going to use the same budget because he has no ideas.

A M Bonello

Nov 28th 2012, 22:27

Well if the government really wanted to "take the mickey" than they might as well have abolished income tax as a whole knowing that theyd have no chance in winning!

Joseph Micallef

Nov 28th 2012, 23:24

@ Roberta Borg

Mela JM m'ghandux ideat issa? Daqs kemm għiddtu fuq it-traħħis tal-kontijiet u s-SARGAS eċċ... mela dawk mhux ideat? issa bla ideat? Ma nafx jien, dawn ta' GonziPN ma tistax tafdom.

Robert Cachia

Nov 28th 2012, 21:56

the fuel prices fluctuare. This is something we cannot control. This was a great budget which confirms the achievements of the PN government.

J Grima

Nov 28th 2012, 22:35

Ta xiex ezatt?

Joseph Micallef

Nov 28th 2012, 23:24

naqbel Roy.. prosit lil Prim talli rnexxilu jirredikola l-parlament u l-partit nazzjonalista!

carlos ellul

Nov 28th 2012, 22:17

Treating people like cash cows is immoral and it encourages tax evasion

Joe Grech

Nov 28th 2012, 22:18

How very well said!
This government is trying to fool people into voting it in again.
Where are the Incentives to Industries? How can this government increase Industries if it does not even bother to help new industrial projects?
The increase in petrol, diesel will offset all other benefits!

Robert Cachia

Nov 28th 2012, 21:46

ara vera ma tara xejn tajjeb. Dejjem trid issib ix-xaghra fl-ghagina

J Grima

Nov 28th 2012, 22:36

Robert Cachia : Xaghra fl-ghagina? Hekk isejhilhom il-nies bla xoghol? Ara vera mandekx mohh biex tahseb..

Joseph Micallef

Nov 28th 2012, 23:26

U le Joe... tiknwetax ħafna... l-aqwa li nħolqu 20,000 impjieg, 20,000 student ta' l-universita u xi 20,000 ħaġa oħra..... GonziPN ta l-20,000. Ħasra ma jerbaħax l-elezzjoni b'20,000 vot!

Denis Pace

Nov 28th 2012, 23:46

Mur dur dawra ma l-Ewropa u tara kif qedt tghix f'Malta....Xoghol hawn ghal min irid jahdem jew jistudja....

J Grima

Nov 29th 2012, 00:41

Really Denis Pace? Do you have any data to hand to prove that? I can say with confidence, that whatever you wrote there is simply made up. I've got data if you wish to see for yourself...

Angela Muscat

Nov 28th 2012, 21:43

They are so irresponsable that they will vote against and will prevent us from such a great budget!!

T Gauci

Nov 28th 2012, 21:48

You mean from huge debt!

J Grima

Nov 28th 2012, 22:39

I'm sorry Angela but how could you state that the budget was 'great' when you clearly couldn't tell the difference or even worse, don't know the difference between 'Duty Tax' & the price of oil?

Do yourself a favour & read before you talk BS. Thanks

A concerned citizen

Richard Hili

Nov 28th 2012, 21:42

Jien hekk kien grali. Ivvotajt Labour fin-1981 u fin-1987 pero minn 1992 il-quddiem dejjem PN ivvotajt. Il-Labour tajjeb biss biex jidhaq bina. Il-PN min naha l-ohra iwettaq. M'hemmx xinxilli...fatti u fatti biss.

Alfred Cassar

Nov 28th 2012, 21:44

Welcome :) Unlike Labour in the PN you are an individual not just a number as this budget amply proves.

Mr Alexander Azzopardi

Nov 28th 2012, 21:47

Its a pity that ur always on the wrong side of the road.

J. Vella

Nov 28th 2012, 21:47

lollllll....Good for you ! ...i think if the budget is approved , soon the eu will tell malta to reduce some millions of it as it did with the last budget!!

Kurt Mifsud

Nov 28th 2012, 22:44

Dan ghamiltu xi grupp fuq Facebook u ftehmtu x'tiktbu kollha f'daqqa? Hsibtuhom boloh in-nies? Lanqas li ma jidhrux li miftehma!!!

Donna Parnis

Nov 28th 2012, 22:48

and If you vote Gonzi do you realise you are also voting for him and his ministers to get the 500 euro a week back, Because thats what he said, When the money is coming in he will re introduce it. He says about Labour introducing taxes, but this budget shows that the PN have introduced more taxes. Yes this is a good budget, For the rich......

Joseph Micallef

Nov 28th 2012, 23:26

Wow.. by any chance you're not a nationalist hux?

Anthony Scicluna

Nov 28th 2012, 21:45

only those too blind to see outside our island's shores

Joseph Micallef

Nov 28th 2012, 23:38

Dr. Franco Debono

Anna Galea

Nov 28th 2012, 21:37

the average earner has been mostly favoured by the income tax revision.

John Spiteri

Nov 28th 2012, 21:42

Just my thoughts!

Anthony Scicluna

Nov 28th 2012, 21:47

Usually, Mr Borg, progressive taxation leads to greater tax avoidance - money going out of the local economy making it shrink. That is what labour is really offering. If you do not believe me check any book on macro economics

J. Vella

Nov 28th 2012, 21:48

good point....those who earn more have their taxes reduced while the average people who earn between 16000 and 23000 remained the same!

Rachel Borg

Nov 28th 2012, 21:30

Agreed.

Mario Sammut

Nov 28th 2012, 21:31

How sad to see Labour Party take control of the government after this great budget :(

S. Azzopardi

Nov 28th 2012, 21:34

@ Rachel Bugeja

Agreed 100%

Kurt Mifsud

Nov 28th 2012, 21:46

Greener country??? Seriously. How come he didn't reduce registration and road tax on motorcycles? A motorcycle road tax ends up higher than that of a car. Some motorcycles have a registration tax higher than some cars, even if they pollute more. Motorcycles don't even qualify for the scrappage scheme.

Kurt Mifsud

Nov 28th 2012, 21:48

Further more, what about cycling? What's being done to encourage cyclists? I'm a regular cyclists myself and the answer is "Nothing". Pot holes and dirt on the road side, no cycling lanes. Some localities like Msida are always flooded with drainage even after a week without raining. How will the budget help here for a "greener country"???

robert pace

Nov 28th 2012, 21:34

Budget to try and win back the 12% deficit, imma jarrallu did darba !!

Doreen Attard

Nov 28th 2012, 21:54

What's so great about a budget that will not be approved Olivia ? I honestly can't see how people can be so much deceived.

Joseph Micallef

Nov 28th 2012, 23:29

Ħasra li l-miri tal-budgets ta' GonziPN dejjem ifallu sena wara l-oħra.

Advert
Advert