From Dr M. A. Sammut

Like all hot air balloons, the PN needs hot air to elevate itself. In the case of the PN, the hot air is its vast gamut of promises mixed with its tactic to denigrate its political adversaries. The heat is provided by a burner placed on a gimbal, also called propaganda machine. Inside the wicker-and-rattan basket are the pilot and his team, mostly spent politicos.

But like all hot air balloons, the PN has got its ballast that can keep it from generating lift. The PN’s ballast contains a mishmash of taxes and other imposts that have lived up to their name: they’ve taxed people beyond measure.

During the 1990s

• A 300 per cent increase on water and electricity bills.

• Telephone bills increased from Lm0.01 per call, irrespective of duration, to Lm0.05 for the first five minutes and then Lm0.05 for each five minutes thereafter or part thereof.

• Succession duty replaced by a five per cent tax on property, collected by notaries on causa mortis declarations. Capital gains tax introduced for the sale of inherited immovable property.

• Removal of the Lm25 income tax rebate for green card holders.

• Introduction of VAT at 15 per cent.

• Removal of children’s allowance.

Tax levied on National Insurance contributions.

Millennium Taxes

• Increase in Court registry expenses. For instance, the presentation of a citation increased from Lm0.50 to Lm50.

• Tariffs introduced during the financial year that wouldn’t have been mentioned in the Budget speech.

• VAT levied on petrol.

• National insurance increased from 1/12 to 1/10.

• Re-introduction of capital gains tax on the sale of inherited property. Later reduced to 12 per cent on the difference between the value at the time of the inheritance and the selling price.

• Electricity surcharge. Any further comment would be superfluous.

• A 20 per cent increase in VAT, from 15 per cent to 18 per cent.

• A 27 per cent reduction in students’ stipends.

Statistical anomalies

Whereas property prices are not included in the price index, the construction industry is included for purposes of GDP. The resulting economic image is therefore highly distorted. Furthermore, publicly-funded projects which overrun their budget are included in the GDP!

This ballast, compounded with all the issues of corruption and arrogance (whether real or perceived), is keeping the PN balloon from generating the desired uplift despite all the hot air. The pilot could be a very nice fellow, which in all probability he really is, but the ballast of 20 years in power is weighing down no end.

A long chapter in Maltese history will be closed this coming Saturday. A new one will begin the day after. A new beginning always brings hope and enthusiasm. This is what Malta and the Maltese need. Here lies the beauty of democracy. The people can choose to close chapters and begin new ones. The destiny of our country is in our hands.

Mark A. Sammut