Government reports €55 million drop in income tax revenue

Between January and April 2025, the Government experienced a €55,704,000 decrease in income tax compared to the same period in 2024.

The data, published in a report by the National Statistics Office, also revealed that the second-largest deficit was recorded in value added rax, amounting to €36.1 million followed by grants at €30.7 million.

Conversely, increased revenue was reported in social security at €61.3 million, with customs and excise duties generating €16 million and licences, taxes, and fines contributing €13.2 million.

The NSO report also found that the Governments’s consolidated fund reported a deficit of €261.4 million.

By the end of April 2025, Malta’s central Government debt reached €10.84 billion, marking an increase of €908 million compared to the same period in 2024.

The data reveals a significant €88.5 million increase in the programmes and initiatives category between January and April 2025, compared to the same period in 2024.

The most significant rise was observed in spending on social security benefits, which climbed to €69 million. This was accompanied by increased funding for church schools, amounting to €14.9 million, and expanded grants for electric vehicle initiatives, which reached €5.7 million.

Meanwhile, the cost of servicing public debt also rose. The interest component alone amounted to €94.2 million, marking an €11.3 million increase compared to the previous year.

Compared to 2024, the Government’s capital spending rose by €1 million, amounting to €167.9 million.

Notable increases were recorded in investment incentives, which rose to €15.1 million, alongside allocations for the RePowerEU initiative at €12.3 million and the development of a second electricity interconnector at €8.6 million.

Conversely, spending declined in infrastructure and asset categories. Outlays for road construction and improvement dropped to €22.2 million, while funding for electric vehicle adoption initiatives decreased to €11.3 million.

Investment in property, plant, and equipment also fell, to €6.2 million.