The Malta Independent 7 August 2026, Friday
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Income Tax on overtime

Malta Independent Saturday, 17 November 2007, 00:00 Last update: about 13 years ago

Another category of workers that I feel should air their views and concerns on the eventual removal of tax on overtime are the hundreds, if not thousands, of employees whose wages consist of a basic wage, normally the national minimum wage, and commission. I am referring to all the salespersons employed in the wholesale, retail and distribution network.

Can the MLP kindly inform this category of workers if they are to form part of the privileged employees who will not pay any tax? These salespersons do not work normal working hours and more often than not they have to put extra efforts to meet their daily, weekly and monthly targets. It can be suggested to these employees that their remuneration will be converted to basic wage and overtime.

Now, since according to Dr Sant all the measures he is proposing will only cost the country LM15m (EUR34.94m) and considering that according to Dr Mangion the 50 per cent fuel surcharge proposal is around Lm12m (EUR27.95m) , the removal of all payments on all overtime in Malta is only Lm3m (EUR6.99m). (But didn’t we hear also from Dr Mangion that the cost of removal of overtime at 15 per cent is Lm12m (EUR27.95m)?) So my proposal to include the salespersons in the privileged non taxable persons is peanuts. But then sorry I have forgotten to mention the subsidy on bank interests to first time property buyers, and the reintroduction of the lost days off of those feasts that fall on a weekend. What will these cost? Or are they also part of the LM15m (EUR34.94m)?

Hence, I am more than ever morally convinced that the measures of non payment of tax on overtime will lead the working community and the country finances into a more complicated mess that the then CET introduction at the time of the removal of the VAT had lead us to.

Maybe who knows we will start hearing again phrases such as “not in the national interest” if we ask and demand a credible explanation to the electoral proposals that the MLP are putting forward.

Incidentally Dr Michael Farrugia uttered this phrase in connection to his refusal to appear on Bondi+ saying that it is not in the national interest that the emigration of patients from St. Luke’s hospital to Mater Dei be discussed during the program.

Vincent Ellul

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