Muscat: PN costings mean people will pay higher taxes
Joseph Muscat claims taxes, or the national debt, will rise under the PN.
Labour leader Joseph Muscat this evening underlined the need for change in the country, saying the costings presented by the PN yesterday would mean a 6% increase in the tax burden by 2017.
Dr Muscat hit out at the government's economic projections, saying no one was believing them - including the EU. Neither was the government being believed in the way it was claiming it would eliminate the budget deficit, given that budget targets were missed year after year. How could this government be believed when it was responsible for 40% of the national debt run up since independence?
What the PN’s costings and projections showed, Dr Muscat said, was that the people would have a heavier the tax burden by the end of the next legislature.
The tax ratio - the ratio between tax revenue and the Gross Domestic Product, would rise to 37.5 per cent in 2017 according to the projections, Dr Muscat noted. For every €100 in tax paid today, the people would be paying €106 by the end of the next legislature.
“These figures can be easily verified in the costings, which the PN released in a rush with half-baked numbers,” Dr Muscat said.
There were two choices with the Nationalist Party’s proposals – that the country’s debt increased or the taxes increased, he added.
The Labour leader also said that while promising to introduce a cheaper night tariff for electricity, a PN government would raise tariffs for day use.
PN REACTION
In a reaction, the PN said Dr Muscat was not credible when he spoke on economic projections. This was the same person who had said that EU membership and euro adoption would drive Malta into a wall, yet the country now had one of the lowest unemployment rates in the EU and finances were sound.
What was certain, the PN said, was that a future PN government would not burden the people with a €600m power station which the country did not need and which would push up electricity tariffs.
It would be better, the PN said, if the PL was to publish its electoral programme.
87 Comments
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Angelo Vassallo
Jan 30th, 22:26
@ M Gatt
Your calculation amounts to 1.96% increase. "dear leader" joseph musct's calculation amounts to 6%. How come your result and that of "dear leader" joseph muscat do not match?
M. GATT - ĦAWWADNI IZJED BIEX NIFHMEK
Massimo Gatt
Jan 31st, 11:17
The tax ratio - the ratio between tax revenue and the Gross Domestic Product, would rise to 37.5 per cent in 2017 according to the projections, Dr Muscat noted. For every €100 in tax paid today, the people would be paying €106 by the end of the next legislature.
His figures do match mine.
Kompli hares min nuccali ta Tonio fenech.
M Gatt
Jan 30th, 14:58
Figures and data used according to PN’s own costings:
TAX Ratio = Tax collected / GDP which in layman's terms means What % of the GDP is made out of Tax.
This is increased due to deficiencies in budgeted revenue.
2011: € 2323m / € 6544m * 100% = 35.50% (CURRENT)
2017: € 3220m / € 8596m * 100% = 37.46% (FUTURE)
So Mr. JM doesn't spout nonsense after all.
Charles Portelli
Jan 30th, 13:59
When someone who wants to spend 600 million euros on a gas power plant which we don't really need tells us that with PN we will be paying more taxes........... I must say he says it with all the grace of an inebriated three-legged Rhinoceros.
Angelo Vassallo
Jan 30th, 12:28
@ M Gatt
Companies like Siemens finish 400 MW gas terminals in 1 and a half years to 2 maximum.
By your reasoning than the LEJBURIST party should be able to built the 200 MW power station approximately in 9 months to one year maximum. ĦALLINA TRID sur gatt!!!!!!!!!!!
D. Ellul
Jan 30th, 12:21
Oh come on JM - ahjar tohrog bi proposti originali mhux tara x'ha jaghmlu l-PN u tipprova ddawrhom. Il-PN xejn ma jaghmel tajjeb ghalik imma imbaghad tikkuppjah f'kollox. Bhal Budget tivvota kontrih imma mbaghad se zzommu. Kulhadd komdu jsieb is-sodda mifruxa...
Angelo Vassallo
Jan 30th, 12:21
@ M Gatt
If it is so simple for you, can you publish the workings you made, as unfortunately I am not very good in Mathematics thus IT IS NOT SIMPLE FOR ME. On the other hand I am just like you, I don't believe the words of politicians.
Angelo Vassallo
Jan 30th, 12:08
@ EDDIE privitera
Mistoqsija ma tigix imwiegba b’mistoqsija ohra jekk inti ghandek argument sod, li INTI M'GHANDEKX.
Pero` jien nista` nirrispondik u nghidlek li Tonio Fenech wasal ghal figura ta €600 miljun ghal power station li tahdem bil-gas ghaliex il-partit LEJBURISTA TIEGHEK HEBA MILL-POPLU MALTI U GHAWDXI €240 MILJUN.
Joseph Cauchi Senior
Jan 30th, 10:16
Konrad Mizzi has vanished in thin air!
Edward Scicluna is sounding more of a voice in the wilderness!
Louis Grech is nowhere to be seen!
Joseph Muscat repeating the same old mantras!
We are almost half-way in this campaign and still Labour has not yet presented its manifesto?
Are these the signs of the MLP in a quandary?
Labour = NO BEEF!
JC.
Julien Cachia
Jan 30th, 10:35
cannot agree with you more !!
D. Ellul
Jan 30th, 12:15
Well done!!!
JOHN WHITE
Jan 30th, 13:10
Or no corned beef lol
Steve Zammit
Jan 30th, 16:24
Exactly !
anthony sultana
Jan 30th, 10:09
Both parties are aiming for tax & spend system, which will bring a total disaster to our island, that's what happen to the USA states, where I use to live.System which one small mistake will put you out of your house,and beging for food.Vote any body else like the AD GREEN PARTY to send a massage to the PL and PN parties, that we dont want to live in insecure country .Every body will be effected
JOHN WHITE
Jan 30th, 10:22
Well if the greens are not that extremists in such issues it would not be a bad idea but unfortunately is not possible. So you have to choose between the 2 bigger parties.
anthony sultana
Jan 30th, 11:12
@ John White
No body will be confortable in this island with the TAX & SPEND system, my friend John is worst than extremists, actually the AD party is not extremists, it is the most gentle party and care for our future natural environment, and for the low income people .PL & PN system is going to bring EXTREME poverty in this islands.Wait and see , my calculations never missed.
Angelo Vassallo
Jan 30th, 09:34
For every €100 in tax paid today, the people would be paying €106 by the end of the next legislature.
Jista' "dear leader" joseph muscat jippubblika l-"COSTINGS" li ħadem il-partit LEJBURISTA (costings ta' veru u mhux desktop calculations) biex seta' joħroġ jgħid li sa 2018, il-poplu taħt amministrazzjoni NAZZJONALISTA jkun qiegħed ihallas 6% aktar taxxa min issa.
Eddy Privitera
Jan 30th, 10:09
Angelo Vassallo; Tista tghidilna kif Tonio Fenech wasal ghal figura ta €600 miljun ghal power station li tahdem bil-gas. U li ssir minn kumpanija privata ???
M Gatt
Jan 30th, 10:14
It's very simple really. Just look at the PN Costings and work it out yourself. I did it and ended up with the same result as Joseph Muscat. I don't believe the words of any politician until I prove something myself.
JOHN WHITE
Jan 30th, 10:25
Eddy,jista jghidilna is-sur muscat kif jista jkun ilesti power station f`daqsekk qasir zmien meta kulhadd qed jghidlu li impossibli? Jaf x`inhuma il-passi mehtiega biex jaghmel progett bhal dan? Allura jekk mhux possibli li jitlesta progett bhal dan kif jista jkun li naraw tnaqqis mill-kontijiet tad-dawl?
francis Buhagiar
Jan 30th, 10:58
Mr. John White once a british ship entered at the Malta Drydocks for major repairs and it was stipulated to be finished in two months the whole world said that it was impossible but it was finished in a state of the arts way in 58 days. I'm Malta every thing is possible, including stupidity.
M Gatt
Jan 30th, 10:59
@Mr. John White
Companies like Siemens finish 400 MW gas terminals in 1 and a half years to 2 maximum.
Labor want to build a 200MW gas terminal. I'm not energy expert but I think that a 200MW terminal is smaller and takes less time to build. Also, these types of terminals are very simple to build.
Adrian E. Camilleri
Jan 30th, 08:44
Mr. JM the Maltese public still awaits the PL proposals as well as their costings. Prove to us where our country needs the change you have been preaching. We do not wish any change simply for change! It is the present and the immediate future that we should be interested in, and that we would prefer, in the interest of our younger generation, to elect the best team for the general good.
S Azzopardi
Jan 30th, 08:41
Pl costings mean people will be living heaven on earth ?
Mark. Galea
Jan 30th, 08:36
u is-600 miljun ghall-power station? ... dawk ma nahsibx li ser jaghmlu effett hux?
M Gatt
Jan 30th, 10:17
Mark Galea why don't you just browse the internet and look for 200MW gas terminals before you spout such nonsense? You can find the cost of the terminal, delivery routes, logistics and storage yourself. I did so and ended up with a figure a few millions less than what lobour are proposing. But this is just variation from supplier to supplier.
John L Galea
Jan 30th, 10:25
600 miljun ivvintawha tal-PN. U m'humiex jghidulkom li il-pjan tal-PL ghall-energija barra li jrahhas il-kontijiet se jkun qed jibda jindirizza id-dejn astronomiku tal-Enemalta.
Julien Cachia
Jan 30th, 10:37
@ M GATT.. Hallik min non sense, i think Mark Galea has a very valid point.. and with all due respect should we rely on your costings ?
Wally Vella-Zarb
Jan 30th, 11:54
@Julien Cachia
"With all due respect" should we rely upon Tonio Fenech's costings when he has consistently been totally off the mark for at least as long as he has been responsible for our finances? When all our budgets have been more in the red than had been 'planned'? When practically all of this government's contracts have been well over schedule and well over budget?
Peter Simpson
Jan 30th, 08:02
The sky high electricity bills is a case in point : no Maltese citizen was ever forced to pay by stealth such a devastating tax that is ruining businesses and lowering our standard of living. If the electricity bills go up again, as the EU repoert is indicating, it will be the straw that breaks the camel's back!
A. Sultana
Jan 30th, 08:51
If your comment is correct, then why will Dr. Muscat not lower electricity costs immediately when he will be PM?
Mr Anthony Briffa
Jan 30th, 07:32
JM cannot be credible in his comments, he is the same person who campaigned against EU membership, the introduction of the euro, and his advise to follow in the steps of Cyprus. How can he be credible now. What we are waiting for is the MLP's electoral programe with costings, including the effect of the 600m euro committment for a surplus new power station. He had better push KV to finish the job.
Joseph Sammut
Jan 30th, 07:23
One thing for sure about this election campain: it is bringing out many financial experts as can be attested from the comments below. Malta must have the highest percentage per capita of financial experts, I dare say, in the Universe!!!!
John L Galea
Jan 30th, 08:09
LOL....you could not say it better!!
Mr Anthony Briffa
Jan 30th, 08:52
The expertise in all fields is amazing. We have the best resource in the world. It is a pity that some of these experts and specialists are falling for JM's un-backed and un-tested proposals. I simply ask when are these proposals going to be turned into committments? Please give us the PL electoral programme soonest, time is running out. JM promised it as soon as the PM blows the whistle. Nothing.
Richard Caruana
Jan 30th, 06:37
The title is a blatant lie as there's no indication of higher taxes anywhere in the costings.
JM's tactics are nothing short of those used by Sant during previous elections, and hopefuly the electorate will see through the glitter and glitz that's characteristing lejber's campaign.
Extra taxes will come if we send 600milion on a power station we do not need.
Joseph Sammut
Jan 30th, 07:14
By what learned explanation have you come to the conclusion of no indication of highter taxes anywhere in the costings? Are you an expert in the field?
twanny borg
Jan 30th, 06:33
Minn dejjem ghidt li din l-elezzjoni imissa ittawlet aktar ghax ser tkisser lil malta jekk tinbidel ir-rotta fi zmien ta' krizi li d-dinja qatt ma rat bhala. Wara kollox il-pl qabel mall-budget tal-pn. L-egoizmu personali ta' certi nies ghamel hsara kbira lil pajjiz.
Joseph Sammut
Jan 30th, 07:16
Sewwa qed tghajjat bl-egoizmu ghax meta berraq l-inkwiet fil-PN fuq sena ilu, Gonzi messu mar ghall-elezjoni.
twanny borg
Jan 30th, 07:56
@joseph sammut - missu mar ghall-elezzjoni il-pl mhux ghax ma qabilx xi deputat imma meta l-poplu ivvota fl-elezzjoni generali kontra tieghu u baqgha jigverna. il-pn kellu mandat biex jigverna mill-poplu. ebda deputat tal-pn ma qasam il-kamra biex imur ghall-elezzjoni anzi gonzi meta ressaq vot ta' fiducja rebhu.
John L Galea
Jan 30th, 08:10
@Twanny Borg: Kumment bla sens ghall-ahhar. Minhabba li Gonzi baqa jtawwal il-problemi zdiedu u mhux bil-maqlub!!.
twanny borg
Jan 30th, 10:19
@john l. Galea - allura kif tispjega li l-pl qabel mall-budget u wasal li qal se jatwah mhux bilfors ghax il-pajjiz miexi tajjeb!!
francis Buhagiar
Jan 30th, 11:01
Sur twany Borg egoizmu ghandek int li trid tibqa fil poter kontra irrieda tal maggoranza fil parlament.
Carmel J. Caruana
Jan 30th, 04:22
I take my decisions according to evidence and the evidence indicates without a shadow of a doubt that the PN administration of the last 5 years has been hopeless in balancing the budget, has squandered our hard earned cash needlessly, has been riddled by allegations of tax evasion and includes too high a percentage of get-rich-quick-on-somebody-else's-back schemers.
J. Pace
Jan 30th, 03:43
How can we believe PL in mathematics when their own calculations on the power stations are super inaccurate and they not published them?!
Anyway 6% is not much compared to the high % increase we will be having thanks to your stupid project. At least under PN we have piece of mind of our jobs. With PL we have NO guaranee especially with your fantasy or copy cat proposals!
Joseph Sammut
Jan 30th, 07:20
If they have not published them, how can you tell that PL's costings are inaccurate? With all due respect Mr. Pace, your comments are as vague as anything.
C Bonello
Jan 30th, 09:02
Mr sammut. 1 + 1 makes 2. And you don't have to be a brilliant mathematician about the costings and timing of this unit ( ex gas power station). That's why the costings are still in the dark. How can they ever get them out? I'm sure konrad is trying to work on this at the moment. We didn't see him lately. God help him in this difficult task.
Joseph Sammut
Jan 30th, 15:03
@ Bonello: your sympathy feelings amazes! Economics have got nothing to do with mathematics and surely are not as simple as 1 + 1: your comments confirm you are one of the election time experts that keep cropping up everyday.
Alex Cutajar
Jan 30th, 01:05
Joseph Muscat's estimations are worked on optimistic values towards a PN government , that is best value possible one can get. That's how a real hard working person bases facts to plan a future!
Alex- www.alexcutajar.com
Joseph Greco
Jan 30th, 00:21
JM - please spare us from hearing you on a daily basis criticism to other parties proposals. rather then doing so, don't you think it is prime time to publish your programme and your costing ! Or is LP (MLP), hiding something here ! Apart from that since when you are not building a new power station .. Chris Cardona calling it a UNIT !
Sorry mate but hard to believe your proposals till now !
Richard Caruana
Jan 30th, 07:20
They're now trying to hide away from their original proposal for a new power station and make us forget it.
Konrad Mizzi, who's soap bubbles have all burst, is now in hiding. And they launched a 'corruption scandal' they had up their sleeve as an evasive action to get the electorate talking about something else.
Pretty soon even this bubble will burst, and then.....stay tuned!
sammy cassar
Jan 30th, 00:18
Look who is panicking now!! Dr.Muscat has no electoral programme....hlief tqancit. Bicca Bicca gejja l-bicca. Mela qedghin il-Mithna jew!!!??
Donna Parnis
Jan 29th, 23:05
No the PN just burdened us with everything else. higher utility bills, paying for their pay rises of which Gonzi said he would re introduce, Our country debt, It would be much better if Gonzi sorted out his cabinet and whats going on there than saying JM is not credible. PN are not credible.
A M Bonello
Jan 29th, 23:03
Mr Muscat has hit the nail on the head.
PN is a MINUS D party!
David Spiteri
Jan 29th, 22:54
I think Muscat's speech is one of the best certificates on PN proposals! And since he gave them a low mark in their 'assignment' maybe he did not fully factor-in EU funding, or maybe he chose to ignore it? 6% inc in tax for the entire 5-year plan? Who said it will all be implemented immediately? There's no doubt on night time elec rates with the interx, but 100 doubts on the CM/LP power plans ..
Anthony Paris
Jan 29th, 22:32
The PN plan is what is called "jam tomorrow". That is, we lose money in the first 3 years and then we make lots of money in year 4 and 5. Also called a "hockey stick" or a "J-curve" They very conveniently back load the plan since nobody knows what will happen in 4 or 5 years from now. The only thing for certain is that the PN has never been able to balance a budget.
JOHN WHITE
Jan 30th, 10:17
So you mention a balanced budget the one issue by Leo Brincat? That was a kick with a hockey stick !!
Jonathan Beacom
Jan 29th, 22:29
I never was very good at maths, but If what Joseph Muscat says is true - i.e that "Nationalist governments are responsible for 40% of the national debt run up since independence"......
.........then surely this means that Labour governments must have been responsible for the remaining national debt 60 % !....Or am I missing something?
Manwel Sinagra
Jan 30th, 09:05
What JM has been saying is that with LG as PM the national debt has increased by 40%. That is since 2004.
A J Rose
Jan 29th, 22:12
“ the PN released in a rush with half-baked numbers,” Dr Muscat said.
The PL's numbers are still in the bowl slowly being mixed!
James Muscat
Jan 29th, 22:00
Its useless quoting the past....... today is another reality and another scenario where the government has been operating in the EU context since 2003. The PL in the opposition has achieved far more better on a European baseline than the Government itself. Even the fact that last EU elections Malta gave the PL a majority of representatives is significant.
Anthony Scicluna
Jan 29th, 21:36
People will pay higher taxes under labour since the labour promises complete reduction of government expenditure and income. Decrease in both leads to stagnation - Economics 101
Ruben Mifsud
Jan 29th, 21:17
And PL's costings.....????
scott brown
Jan 29th, 21:14
it is becoming evident that JM and the PL are in panic mode. behind all that publicity, billboards and media hijack there is just thin air. five long years telling us that they are prepared and JM and the PL have not yet delivered an electoral programme while the PN published a manifesto, and a costed electoral programme. and they want us to believe they will build a power station in 18 months.
m farrugia
Jan 29th, 20:59
people will pay higher taxes to make up for a promised reduction in utility rates, since power station pl project is pure fantasy, you do no even get necessary permits, plans and build a house in 2 years, let alone a massive project such as this. and why do we need an extra power station with a cost of at least 600 millions euros which at the end has to be paid up one way or another by taxpayers
Mary-Grace Borg
Jan 29th, 21:18
x imkien isemma private partnership u mkien taxes .... jew smajna storja differenti jew ma nafx
RONALD ARRY
Jan 29th, 21:25
u zgur li lanqas bix tibni dar ma johroglok il permess sur farrugia fi zmien sentejn jek il mepa kella suppost tkun aktar efficjenti u taqta il burokrazziji mindu hada gonzi taht idejh ,u taf xinhallsu ahna taxpayers is 600 ewro zieda li hadu ,'why do we need an extra powerstation ' ax ma staqsejtx lil gonzi mela ala qadna nibnu power station ohra dellimara, u tal marsa baqet tintuza??
Joseph Mifsud
Jan 29th, 23:20
Seens you were asleep during the highly professional presentation held 3 weeks ago
Carmel J. Caruana
Jan 30th, 04:45
You see the LP energy strategy as a fantasy because you dont realize that an intelligent economist can actually do more with less. I dont blame you Dr Gonzi has been a disaster here.
David Magro
Jan 30th, 06:18
Att.Farrugia, if you read the PL proposal on energy, the private sector will venture on this ambitious project. Do you read Joseph Muscat personal commitment? Did you read that there would be a reduction in water & electricity bills? We have witnessed Tonio Fenech failures each year when budgets were presented. He failed for 5 years are you continue to believe him?
Richard Caruana
Jan 30th, 07:22
Funny, I thought Konrad Mizzi was supposed to be shoring up the energy proposal.
He disappeared and has left it in the hands of a few gullable lejber elves to defend the defenceless.
BTW, it's no longer a power station, now they're calling it a 'power unit'! The cheek of it all!
C. Bartoli
Jan 29th, 20:51
It was your party in 1996 that promised heaven on earth and because of that Alfred Sant had to introduce 33 new taxes in less than 22 months. PN removed 27 of them! so who shall we believe. The MLP energy fiasco is a dejavu of the VAT fisco of 1996. We cannot trust lejber!
Joseph Mifsud
Jan 29th, 23:18
Guess you are either an energy engineer or a plant designer....seems you are well informed
Carmel J. Caruana
Jan 30th, 04:44
Alfred Sant introduced taxes to try to control the budget deficit left by the previous PN administration. It's called responsibile leadership. In this regard Dr Gonzi has been a big disappointment. You see the LP energy strategy as a fiasco because you dont realize that an intelligent economist can actually do more with less. I dont blame you Dr Gonzi has been a disaster here.
David Magro
Jan 30th, 06:13
Att.Bartoli, do you believe that PN removed any taxes? PN introduced many indirect taxes such as Vat on fuel, something we use daily...PL was clear with the electorate whilst Gonzipn made you eat the carrot without knowing. What do you say about the high rocket increase in Gas? We used to by it for Euro5, now its over Euro20....and you do not say that Gonzipn increased Taxes...come on.
C. Bartoli
Jan 30th, 08:59
so according to you all we should vote MLP so once they are in power they will introduce a lot of taxes to balance the accounts. The funny bit is that even with all those taxes introduced by Alfred Sant the national debt went up by 800 million lira and unemployment to 10,000 in less than 22 months & all the he had to show after this catastrophe are a couple of tiles adorning the bugibba front
JOHN WHITE
Jan 30th, 10:12
We are not engineers but those who have this sort of backround called "experts" all agreed that :
1) Timeframe cannot be achieved
2) This sort of energy plan is not needed.
Regarding the taxes,this one made me laugh.So Alfred Sant introduced all the taxes to balance the deficit?
LOL. One of the proposals was a tax for drainage!! Come on who can ever and ever trust PL !!
Joseph Bajada
Jan 29th, 20:49
JM is very optimistic as regards the increase in taxes. Under a future GonziPN government, taxes shall go up by an average of 20%. It is impossible to sustain an increase of a yearly 130 million euros expenditure basing only on efficiency!
This something GonziPN has been consistently hopeless in: Efficiency!
Mr Mark Borh
Jan 29th, 22:52
I'm sure that you got that result based upon calculated figures. No, you didn't.
Il-Lejber have been consistent at twisting words and promising but not delivering (by promising to remove VAT and they bring in CET) as well as being vague and leaving people in the dark (by not publishing costings for the power station).
The Lejber party have not changed and are still up to their old tricks.
Ray Buhagiar
Jan 29th, 20:48
6% mhux hafna if this is paid by all and efficiently collected.
I suggested a further increase of 3% that would go towards sports.
George Cutajar
Jan 29th, 20:45
JM continue to deride PN costings. How about he comes up with what his proposals will cost , obviously including the super energy plan. We are just 40 days away from D Day an we all have a right to know.
K Grech
Jan 29th, 21:28
Do you consider 40 days as just? I consider them a lot, especially when some might be filling up their pockets with thousands every time the sun rises.
A. Agius
Jan 29th, 22:40
Dear Mr Cutajar, if parties are costing their proposals, it is because the PL started doing so. PL stated this a long time ago: all proposals will be costed. And to be quite fair, the costing presented by GonziPN are not real, try to get a loan from a bank with those costing and see if you get one: they are unrealistic, full of assumptions and without real substance.
Joseph Mifsud
Jan 29th, 23:16
Each time pl is issuing its proposals its unveiling how much it would cost & how it can be sustained. So we appreciate if you listen well before speaking out
jm busuttil
Jan 29th, 20:24
Yes Joseph the tax burden is from growth. The more growth we have the more revenue in vat and income tax.
We also know how to calculate and we do not need to view One and its media to be brainwashed, like most of of the individuals interviewed and when asked which PL proposals are of interesting they say all and when pressed to select one they do not even know how to answer.
Ray Abela
Jan 29th, 23:11
JM you do not need brainwashing....you have already been brainwashed....may I suggest a light rinse!
Joseph Mifsud
Jan 29th, 23:13
The only growth we are seeing is the national debt & the deficit. You can vote on that on 9/3
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