A Labour Government would retain any reduction in income tax introduced in the Budget but has not said how it would cost an unknown.
The party’s pledge to cut energy tariffs still stands and would not affect the Budget, a PL spokesman claimed, saying it was part of an economic strategy for growth.
He was answering questions sent by The Sunday Times on a pledge made last week by Labour leader Joseph Muscat to retain the Budget’s “good points”.
The Labour Party was asked how it could cost an unknown and how it intended to finance the Budget measures and its own electoral promises, including the reduction of water and electricity rates. It was also asked whether it interpreted the Budget’s positive points as popular.
In the last election, the Nationalist Party promised to slash the top income tax rate to 25 per cent from 35 per cent for those earning less than €60,000.
Taxpayers have “a right to retain” a tax cut they have been waiting for the past five years, a Labour spokesman said yesterday.
“We have long been convinced that before the 2013 general election GonziPN will be doing something to show it is going to move on the income tax pledge... any change in income tax will be responsibly retained by a new government led by Joseph Muscat,” the Labour spokesman said.
He insisted the next Government will have to work under the Budget framework which should be in place before the start of 2013.
The Labour Party’s stand was criticised by the Finance Minister, who said it would be “irresponsible” if the next Government retained the good parts but ditched the less popular measures needed to balance the equation.
But the Labour spokesman insisted that retaining the framework meant “keeping the headline figures of expenditure and revenue”.
“We assume these have been discussed and agreed with the European Commission,” he added.
Apart from the income tax pledge, the spokesman would not say what other measures would be retained.
The party, he added, will commit to specific measures once the Budget was announced.
But he was adamant that the party would stick to its pledge to reduce electricity tariffs even though the Government has insisted tariffs can only remain static because of a €30 million subsidy that it will retain in the Budget.
“Our energy tariffs pledge stands and it will not affect the Budget. It is part of an economic strategy for growth,” the spokesman said.
Defending the Labour Party’s commitment, he said it was taking “the prudent and responsible approach” to ensure stability and certainty at a time when families and business needed it most.
ksansone@timesofmalta.com