The tax cuts expected in the 2025 Budget will have a twofold effect, that of increasing income of the middle class whilst encouraging productivity which will consequently lead to a better quality of life, Prime Minister Robert Abela said on Monday, during a consultation meeting with the Malta Employers' Association at Castille.

"I believe that tax cuts will have a double effect; first, that the people of the middle class will have a stronger income, and I believe that this will keep on leading to a better quality of life. On the other hand we will incentivise the workers' productivity even more, with bigger incentives and participation in the country that everyone will enjoy," Abela said.

"We are revising our policy for migration so that it will be better adapted for the realities and needs of the present and the future," Abela was quoted as saying in a Department of Information statement. He pointed out that the government began work in a new direction to address the new challenges and needs that were spurred by the economic success Malta achieved in the last few years.

Abela said that work has already been done to address the reality of more workers than necessary in particular sectors as well as the work that is being done towards revising Malta's migration policy, based on four different principles; including worker upskilling and reskilling, worker's rights, better stability and rates of worker retention, and awareness of the true needs of the workers in Malta's industries.

Abela said that whilst the economic success must be continue to be ensured in a sustainable way, it must lead to new priorities including a better quality of life, a stronger infrastructure, direct foreign investment with added value and more quality employment. He said that it is additionally important that the government will remain supportive whilst incentivising employers as was done in the past during the COVID pandemic with measures such as the Covid Wage Supplement and in the near future with the measure to decrease the tax that will chiefly affect the middle class.