PN proposes tax reduction for SMEs in latest electoral pledges

The Nationalist Party on Friday issued a package of proposals targeted at businesses and NGOs on Friday.

During a press conference, the party’s leader, Dr Alex Borg, announced a package of seven measures.

If elected the PN said that it would reduce tax for micro enterprises and small and medium-sized enterprises (up to 250 employees) from 35 per cent to 15 per cent, and for micro enterprises (under 10 employees) from 35 per cent to 25 per cent.

The PN would also raise the threshold for a business to qualify for VAT exemption from an annual income of €35,000 to €70,000.

“This means that the threshold will be doubled in order to reduce bureaucracy and free small businesses from the burden of VAT forms,” the party said.

It said that the current VAT exemption threshold no longer reflects today’s economic reality.

In addition, the party is proposing that specific training provided by employers be fully funded. It said that employers will pay nothing, “allowing them to continue investing in their employees and ensuring that workers remain up to date with today’s developments and technology.”

This, the party said, will help businesses become more competitive and help workers improve their prospects and the possibility of better wages.

The party also said that it will offer industrial spaces for small Maltese businesses through a fully affordable rental scheme, running in parallel with existing purchase schemes.

As for voluntary organisations and NGOs, the PN is proposing that they receive a full refund of all VAT paid on the purchase of products and services directly related to their work.

The party said it will also introduce a 30 per cent credit on donations to NGOs, up to €50,000 per year, and that it would extend the Government property purchase scheme to NGOs and voluntary organisations.