The Nationalist Party has announced a new proposal to introduce a tax band that will incentivise parents with more than one child, saying it will leave €8,500 annually in the hands of these families

The PN said that it strongly believes in strengthening Maltese and Gozitan families and in parents' right to enjoy their children while finding a balance between work and family life.

"We want families in Malta to live to work, not work just to live. We must move from words to action. Following a series of proposals aimed at improving quality of life by achieving a healthier balance between work and family time, today the PN is putting forward a new family-friendly measure for parents with more than one child."

"With this proposal, we will support families and help them overcome the financial burdens that, in many cases, are the reason Maltese and Gozitan families opt not to have more than one child, the PN said.

It said that studies show that raising a child until the age of 18 costs between €7,000 and €9,000 a year.

"For this reason, the PN is proposing the introduction of a second tax band for parents with more than one child. This new tax bracket - to be called "Parent 2" - will provide €8,500 more annually for families who choose to have more than one child. Exactly the amount needed for every child."

It was a Nationalist Government that in 2012 had the courage to introduce tax bands to incentivise parents with the parent tax rate, the party said. "This new measure announced today builds on that vision, encouraging young families to have children. We know that Malta's birth rate has fallen. Even the Government itself has admitted the problem through Minister Clyde Caruana and MP Ramona Attard, who sought to present as their own, measures already proposed by the PN."

"In recent days, the PN has listened to growing concerns about whether Malta will still have Maltese in the future. It is in this context that the PN is presenting this carefully studied proposal, with further details to be published in the coming days on its benefits, costs, and funding. To maintain Malta's population, the birth rate must reach 2.1 per woman - precisely what this measure addresses," the PN said.

The PN said that this new tax proposal complements other measures it already announced, including the extension of paid parental leave to a full year, applicable across both the public and private sectors - "a measure that the Government will shoulder."

The PN called on Finance Minister Clyde Caruana to include this new tax band for parents with more than one child in next month's budget for 2026.

"Failing this, the PN pledges to implement these family-strengthening measures once elected to government."

The PN statement was signed by Graham Bencini, Shadow Minister for Finance, Ivan Castillo, Shadow Minister for the Maritime Sector, Social Dialogue and the Fight Against the Rising Cost of Living, and Albert Buttigieg, Shadow Minister for Family and Social Security