The Nationalist Party has shrugged off criticism of its 10% self-employed tax pledge made by leadership candidate Adrian Delia, saying the proposal’s sustainability was backed both by experts and stakeholders.
Unveiled in November last year as part of a wide-ranging policy for retailers, the tax cut was estimated to cost taxpayers €85 million a year, according to the PN’s estimates. However, some economists questioned the figure pointing out that lowering income tax for all self-employed people earning less than €50,000 a year would have bigger repercussions on public finances.
The debate on this fiscal measure was reignited over the weekend by Dr Delia when he outlined his vision for the self-employed.
While hailing the PN policy document as a huge step forward, he hinted that the party might have overlooked the long-term implications of the 10% proposal.
Political parties should listen to technocrats and economists to understand the long-term implications of tax changes and not propose things solely to win an election
“Political parties should listen to technocrats and economists to understand the long-term implications of tax changes and not propose things solely to win an election,” he remarked when asked whether he backed such measure.
PN sources who spoke with the Times of Malta yesterday said Dr Delia’s comments raised questions over whether this flagship proposal was set to be ditched. A party spokesman insisted that questions on the sustainability of the proposed tax cut had already been addressed in detail in the policy itself.
“The proposal was drawn up after a year-long process of study and consultation with experts and stakeholders. The result was a policy document that remains the first and only one ever produced by any political party on self-employed, with a particular focus on retailers who count about 7,000 and employ about 20,000,” the spokesman said. He noted that the document had been delivered by hand to most retail outlets across the country to ensure that the right people learn about it.
“The party is in no doubt that the election result does not amount to a rejection of this important proposal,” the spokesman said when asked if the pledge would be ditched.
Dr Delia’s position on sensitive issues like euthanasia, abortion and surrogacy was also being questioned, especially by conservative circles within the PN ranks, sources said.
Dr Delia’s position on sensitive issues like euthanasia, abortion and surrogacy was also being questioned, especially by conservative circles within the PN ranks
The issue cropped up unexpectedly over the weekend when Dr Delia declined to take a clear stand, saying the PN had to inform itself first. Party activists who spoke with this newspaper insisted that on such matters there was nothing to discuss because these were “red lines” that no PN leader should dare cross.
Dr Delia said, when contacted yesterday, he would have preferred had this newspaper furnished him with research supporting what it was saying that members were expressing doubts about his stand. He said he met “tens” of members every day and none had raised the matter with him. He said the comments he made on Saturday after being asked by a representative of the Times of Malta about the ethical and moral issues on which he would be willing to allow a free vote were restricted to what he was asked and nothing else. “Any other interpretation meant to create doubts is superfluous.” Dr Delia said he had declared that he was against abortion and was pro-life.
“The PN must listen to the experts to adopt an informed stand about other laws the government wants to enact so that, thus informed, we can decide and agree on a common stand. When we disagree, we would allow MPs to vote according to their conscience on ethical and moral issues,” Dr Delia added.