Workers who earn up to €20,000 will pay only 10% income tax if a Nationalist Party is elected to government, PN leader Simon Busuttil said today.

Dr Busuttil was addressing the press this morning at Valletta's Upper Barrakka as part of his electoral campaign titled 'I Choose Malta'. The party leader announced electoral pledges linked with tax reduction incentives, which would "turn our economy into an economy for people," according to Dr Busuttil.

This measure, which was the first pledge he announced, would mean that those who earn between €9,100 and €20,000 would have their tax reduced by more than €100; from €2,275 to €1,090. Dr Busuttil said that this would leave more than €44 million in pockets of families, and will benefit approximately 121 000 workers.

As a second measure, he pledged that if elected, the Nationalist Party would also tax part-time work and self-employed part-time work Part-time at a maximum of 10%, which will leave €3.8 million in people's pockets, he said when speaking in Valletta. "With this scheme, 5,485 self-employed individuals and 23,000 works will benefit," he said.

The third measure, aimed at those self-emplyed and small businesses, will have their income tax reduced to 10% on their first €50,000 of profit. Dr Busuttil said that this is a measure which would "increase economic activity," and "decrease tax evasion".

Dr Busuttil said that if elected, the Nationalist party will also remove the "anti-social" excise tax on cosmetic products and toiletries which was introduced by Prime Minister Joseph Muscat in the last budget. Dr Busuttil said that this measure was "unjust".

The fifth proposal is to increase the capital of the Malta Development Bank by €360 million, in order to "encourage start ups and small businesses to invest in innovation, more internationalization and growth." The guarantee loans will vary between €25,000 and €250,000.

The sixth pledge is to reduce the tax on profit in businesses, which will be decreased to 15% "so that businesses can invest in their profits" and will adhere to "economical increase".

The final proposal is made "for businesses to diversify," according to Dr Busuttil, who wants to "create an economic niche, to increase new economical sectors." Tax of up to €40,000 a year for up to a three-year period would be exempted. This measure would link businesses with educational sectors and institutions.   

We are currently in the third week of electoral campaigns, following a snap election for 3 June called by Prime Minister Joseph Muscat.