It was not true that the budget did not introduce any new taxes. The “reduction” of the Capital Gains Tax was, in effect, an increase, Labour spokesperson for Public Works, Roads and Construction, Charles Mangion and spokesperson for housing, Stefan Buontempo said.

In a joint statement on Thursday, they said people who wanted to sell property in the past only had to pay seven per cent provisional tax on the sale price and this was also refundable.

With this new final withholding tax, sellers would now have to pay 12 per cent on the full amount of sale, they added.

Mangion and Buontempo said the injustices and social repercussions created by this tax would resonate across the whole social fabric of our country.

They added that the tax will have to be paid immediately and developers and owners will be discouraged to declare old homes because improvements will no longer be utilised for tax credits.