Dr Mangion said the items in question include confectionery, books, printed material, juices and medicinals.

He said that up to the end of April, these items had been exempt from VAT. Instead of trying to reduce the burden on working families, said Dr Mangion, the government was imposing new taxes because of the precarious situation of the country’s finances.

About 400 items that were previously VAT free are now chargeable, he said. “This will result in a direct increase in the cost of living, in turn putting more pressure on the need for an increase in wages – which will also undermine our country’s competitiveness,” he said.

These new taxes reflect on the confusion within the PN ranks and the despair of the government, he said. “The government says it doesn’t want wages to increase, to ensure that we remain competitive, but this is what is going to erode our competitivity,” said Dr Mangion.

Such decisions were taken without any consideration as to how those with a low or medium income, and pensioners, will be affected.

“Other serious governments in the European Union are trying to do what they can to reduce the amount of tax they are imposing in an effort to increase competitivity and to attract direct foreign investment. But our government is doing exactly the opposite,” he said.

He also said that economic growth was decreasing while the national debt and the deficit were continuing to increase. He said the PN government was ignoring the situation and trying to hoodwink the general public in the run up to the 12 June election.

Dr Mangion said the country’s problems were due to bad leadership by the PN. “The country’s problems should be faced up to in a serious manner by drafting an economic regeneration plan. We must make our country attractive to investment to create jobs and profits. In that way, we can elevate the dignity of our workers and protect the social rights of workers,” concluded Dr Mangion.