Minister for the Family and Social Solidarity Dolores Cristina yesterday continued her winding-up speech on the proposed amendments to the Housing Authority Act. Mrs Cristina criticised the fact that Labour speakers contributing in the debate mentioned isolated cases of injustices while not drawing up the whole picture of the scenario in a general context. Mrs Cristina remarked that such cases – contrary to what might have been perceived after hearing Labour speakers during this debate – were the exception and not the rule.

As to the rent reform issue, Mrs Cristina admitted that the issue was a very sensitive and complicated matter. She said that the ministry has been working a lot in this regard. She proposed that the government would be sending their proposals to the Malta Labour Party so that there will be an inter party contribution. Mrs Cristina said that it is very important that there will be consensus on this subject.

Mrs Cristina promised that the employees working within the Housing Authority, the Department of Social Accommodation and the Department of Construction and Maintenance will not be jeopardising their conditions of employment through the amalgamation being proposed.

The Bill was then given a second reading and sent to committee stage.

Budget measures

implementation Act

The next item on the agenda was the Bill proposing to implement the various budget measures and other administrative measures.

Parliamentary Secretary in the Ministry of Finance Tonio Fenech said that the government’s objective – that by 2010 the country will stop talking about deficits – can be achieved. Mr Fenech said that the government should do its utmost to maximise the best returns for the country. The government can do so by seeking methods of reducing the interest payable upon national debt.

The Parliamentary Secretary then went through a lot of measures that were proposed in the Budget for the year 2008. He first went through the revision of income tax bands.

As regards income tax chargeable on a joint computation basis, he said that the non-taxable income tax cap has been increased from Lm4,500 (EUR10,482) to Lm4,894 (EUR11,400). The 35 per cent income tax rate is now applicable to income which is above the Lm12,021 (EUR26,919) cap.

Those who earn Lm5,500 (EUR12,811) will be only paying Lm90 (EUR209) in income tax equivalent to less than Lm2 (EUR4.66) per week amounting to 1.6 per cent of all their income, PS Fenech said.

Those who earn Lm8,000 (EUR18,634) will be paying Lm466 (EUR1085) in income tax instead of Lm700 (EUR1631). This amounts to only six per cent on all their income, Mr Fenech said. Those who earn Lm12,000 (EUR27,952) will be paying 9.7 per cent of their full income. Mr Fenech noted that the reductions are substantial.

As regards income tax chargeable on a single computation basis, the non-taxable income tax cap has been increased from Lm3,250 (EUR7,570) to Lm3,498 (EUR8,147). Those who earn Lm6,000 (EUR13,976) will end up with Lm207 (EUR482) more in their pockets, paying six per cent income tax on all their income.

Mr Fenech said that the Bill being debated in parliament will eventually enact various budget measures but not all the measures. There are measures that will be enacted by subsidiary legislation – Legal Notices under the Income Tax Act or under other Acts. One such instance is the measure that encourages more cultural events, with VAT on such venues being reduced from the current 18 per cent to five per cent.

Mr Fenech asserted that the revision of the income tax bands will benefit all equally. He also went through the children’s allowance measures and the duty on documents reductions for first-time home buyers.

Opposition Deputy Leader Charles Mangion told the House that it was the Nationalist government which in 1995 had abolished the children’s allowance to high wage earners. Dr Mangion recognised the fact that in the banking sector there was a profit of more than Lm100m and that the online gaming industry has been a success. However, it is important that all the sectors of the economy move forward, Dr Mangion said. Dr Mangion said that bureaucracy in our country has been increased and that we must do our utmost to reduce it. The debate continues next week.

At the start of yesterday’s House of Representatives debate, the Bill that provides for various amendments to the Enemalta Act and the Water Services Corporation Act was given a third reading.