The Chamber of Commerce and Enterprise welcomed the proposals on taxation announced by Nationalist Party leader Lawrence Gonzi. In a statement, chamber president Tancred Tabone was particularly satisfied with the announcement since the chamber proposed the possibility of fine-tuning personal income tax bands with the Prime Minister only last week when Dr Gonzi visited The Exchange to discuss the chamber’s proposals for the 2008 general election.

The proposal to widen the initial threshold of 15 per cent, as well as that of lowering the tax ceiling to 25 per cent, was indeed positive to business as it promised higher consumption, Mr Tabone said.

“Primarily, this measure will serve to increase purchasing power across the board, thereby promising to stimulate the economy. Dr Gonzi stated that this measure would be sustainable in the medium term through the same added economic stimulation it would bring about. Besides, this measure is also beneficial to national competitiveness as it is conducive towards containing wage inflation pressures,” he added.

“The announcements made this morning were positive from a business and economic point of view especially given the unfolding international economic situation. The call to stimulate the economy was made to the Prime Minister during his recent meeting with the officials at the Chamber of Commerce,” concluded Mr Tabone.