A set of planned income tax cuts will leave €600 in the pockets of middle class families, Prime Minister Robert Abela told supporters on Wednesday.

Speaking in a political activity in Hamrun, Abela said that the income tax cuts were an electoral pledge and they will be done. 

He said that besides changes affecting the middle class, parents who earn up to €1,000 per month will no longer be taxed as part of the changes.

Businesses will also enjoy adjustments to the tax rates that they pay, Abela said as he noted that while the PN said that it had no position on the minimum tax rate that the European Commission wants to impose, he is going to keep fighting for the country’s businesses.

He said that he is committed to addressing the distinction in tax rates between foreign and Maltese businesses and added that the government has plans to incentivise businesses operating from certain localities in order to prioritise the regeneration of these areas.

Abela gave no indication on the timeframe for when these cuts will take place, but Finance Minister Clyde Caruana – who spoke before Abela – said that they would be included in the next Budget.

The Prime Minister dedicated much of his short speech to the government’s economic credentials, again comparing Malta to Europe and noting how where European countries had added burdens to their people, the Maltese government had moved to protect the people.

More so, the government had reduced the deficit, increased pensions, given the biggest Children’s Allowance increase in history, and also provided the highest minimum wage increase in history.

All this, Abela said, however is not enough. “We will give you more,” he said to raptures of applause from those present.

He said that parents would receive three €500 payments in three years if their children keep studying at post-secondary level – the first payment of which started to be issued this week – and added that teachers are going to be given “the biggest salary raises they’ve ever been given in this country’s history.”

Speaking about Hamrun, he said that the police station would be re-opened after renovations and there would be investment in more law enforcement.  A new green space would also be created, featuring a rain garden and an Obstacle Course set up.

He said that all this can only be sustained if the people go out and vote for the Labour Party. “If the establishment sees the smallest sign of hesitation from you, they will charge you. They declared a war against you – don’t let them,” he said.

“I am not afraid of their holy war.  I will remain very calm, but also strong – be with me,” Abela concluded.