In its report to the European Commission, the Government stated that it would increase indirect taxes to make up for “the gradual losses from the revision in the income tax regime”. In its editorial of October 10, Times of Malta seems to have bought the argument.

According to the National Statistic Office, between January and August 2013, revenue from income tax, far from taking a dip, increased by £76.5 million over the same period last year.

This proves that the reason given by the Government for its proposed increase in indirect taxation is a spurious one.

If we are still allowed to draw political conclusions, I believe that the increase is intended to replace inter alia the loss of revenue due to the promised 25 per cent decrease in electricity and water tariffs.

Moreover, the Government assured us soon after last March’s election that it would carry on with the decrease in income tax because it was confident that the drop in revenue would be recouped by growth in the economy.

Instead, the Government is planning to raise the tax burden from 35 per cent to 36 per cent of the gross domestic revenue.

What this means in plain language is that this country’s economic growth, in spite of the improved prospects in our main markets, will not be enough to finance the pre-election Labour Party promises.

The chickens are coming home to roost.