Corporate tax reduction among Labour’s first proposals, as PN promises €1 billion investment

It’s only the first full day of the general election campaign, but both the Labour Government and Nationalist Opposition have already laid out proposals worth hundreds of millions of euros during their maiden campaign events.

After announcing that the nation will go to the polls on 26th March, Dr Abela listed the Labour Party’s first five electoral proposals, targetted at both citizens and businesses:

• A Labour Government would give young couples buying their first home €1,000 each year for the first 10 years of their purchase
• There would be an investment of €700 million in new green spaces across the country over a seven-year period, with an emphasis on village cores.
• Tax bands and tax refunds will be widened, leaving an average of €300 in every pocket – a plan worth €90 million.
• Corporate tax rate will be reduced from 35 per cent to 25 per cent on the first €250,000.
• Pensions will increase by not less than €15 a week throughout the whole upcoming legislature. He said the proposal will amount to a €2,340 increase in pensions per person, which will result in a total spend of €240 million.

Dr Abela said the five initiatives would cost a total of €1.39 billion over five years, and would be financed through money generated by the creation of new jobs and the strengthening of the economy.

While Opposition Leader Bernard Grech announced fewer proposals than the Prime Minister – only one, in fact – the proposal itself represents a massive investment.

Dr Grech said the Nationalist Party would allocate €1 billion for the creation of 10 new economic sectors.

Dr Grech said the Government had not only failed to create new economic sectors, but had also jeopardised those created by the previous PN administration.

However, the Opposition Leader did not specify which economic sectors would be created.

Without going into detail, he also spoke about the importance of a healthy work-life balance and said the PN wants the Maltese to spend more time with their families.

Undoubtedly, economic observers will be waiting keenly for both parties to release their fully costed manifestoes.