Prime Minister Robert Abela announced on Sunday that a legal notice would be issued this week, allowing pensioners who have additional income, such as rental earnings or part-time work, not to pay tax on that income, a move he said would result in thousands of euro in savings for those who continue working.

Speaking at a political activity in Naxxar, Abela said that all pensioners whose total income amounts to up to twice the maximum pension would have that entire income exempt from income tax.

Abela said that the exemption would apply in full, meaning that pensioners earning up to double the maximum pension would pay no tax at all on that income.

Under previous tax rates, Abela said that a pensioner earning that level of income was subject to taxation of up to 35%, whereas as of this week the tax rate on that income would effectively be zero.

He said a legal notice would formalise the measure, ensuring full exemption from income tax for pensioners falling within that bracket.

Abela told pensioners they would find the government standing behind them and that they would save thousands of euros in tax as a result of the reform, declaring that their time for enjoyment had arrived.

He added that his objective when it came to taxation remained singular - that taxes should decrease and continue decreasing - and went further by saying that a time would come when even those earning an average wage would no longer pay income tax.

Abela said that pensions today were exceeding the wage that pensioners used to receive.

He said that the minimum pension had now risen to match what had once been the maximum pension under a previous Nationalist Party administration, describing this as a significant shift in social policy over recent years.

Abela said Malta had embarked on what he described as an important week for the country, as he formally launched Vision 2050 last Friday, a long-term strategic programme intended to guide Malta's economic and social direction in the years ahead. He described Vision 2050 as a structured programme of work and direction through which Malta would continue advancing to "the next levels," arguing that the country had already achieved substantial economic growth over the past years, with the economy having grown more than three times in a relatively short period, while other economies stagnated.

He said that last Friday he had solemnly sworn to the public that Vision 2050 would take Malta into its next chapter, one that would tangibly improve people's lives by understanding not only aspirations but also priorities.

Abela drew parallels with the 1960s, when foreign experts had predicted Malta would remain poor and its people would be forced to emigrate. "The soldiers of steel of that generation had given their strength and health to ensure those negative predictions did not materialise, enabling Malta today to stand proudly as the jewel of Europe," he said.

He said that while 50 years ago Malta had been labelled a failing country, today it stood as one of Europe's success stories in terms of national wealth per capita, having strengthened its economy over the past 10 to 12 years at a faster pace than Germany, Europe's largest economy.

Abela said that prosperity required a competent and serious movement that loved Malta and knew how to manage the country's finances responsibly.

He pointed to Malta's A+ rating from Fitch and said that whereas previously the IMF had conducted annual economic check-ups, it now will do so every two years, which he described as evidence of confidence in Malta's economy.

Abela said that the deficit would be lower than forecast as well.

The Prime Minister said government investment in housing had increased fivefold and that nearly 34,000 young people under the age of 25 had become homeowners within just five years.

He promised that when the Labour Party presented its next electoral manifesto, assistance for first-time buyers would exceed expectations, criticising the Opposition for proposing equity-sharing mechanisms that, he said, had already been introduced under his administration.

Abela added that students today received stipends five times higher than in 2013 and that families were benefitting from tax cuts, free public transport, waived MATSEC examination fees and financial incentives for those who continued their studies, amounting to more than €10,000 per year in increased benefits for families.

Abela said that among the significant decisions taken recently was the future of White Rocks, explaining that government could have accepted any form of investment proposal but instead chose to return the site to the public so families could enjoy it, with the first phase of cleaning works already underway.

He added that discussions regarding Manoel Island had advanced and would be concluded, and that Fort Campbell would also be transformed, saying he intended to meet young students to consult them on plans for a public park at the site so that their aspirations could be realised.

"We deliver on what we promise," he said, adding that supporters knew where the government stood and where it was heading.

Abela accused the Opposition of spreading negativity, claiming that for 13 years it had accused, investigated and instigated, creating an impression through media and blogs that Malta was a war-torn country or a mafia economy.

He said the public did not want a politics of mediocrity and austerity and accused the Opposition of creating tension to prevent him from announcing schemes and successes, while insisting he would continue announcing "success after success."

On judicial reform, he criticised the Opposition for voting against raising the retirement age of members of the judiciary to 70 despite recommendations from the judiciary and the Chief Justice, and said that contradictions between Opposition Leader Alex Borg and justice spokesperson Joe Giglio reflected internal division.

Abela continued that the PN will always be "led by the same four extremists," no matter who is leader of the party.

He confirmed that government would present a bill in Parliament on Monday, introducing an anti-deadlock mechanism and other reforms to ensure certainty and serenity in the functioning of the judiciary.

Referring to speculation about elections, Abela said an election would take place when he decided, at an opportune moment dictated by the national interest, and not decided by the Opposition Leader.

Abela said Malta is once again operating in a difficult geopolitical context and that the country now had the stature, experience and maturity to maneuver sensitive international situations.

Abela said that government is actively working to assist Maltese and Gozitan citizens caught abroad in ongoing conflicts in the Middle East and ensuring their safe return.

He said decisions were being calibrated carefully to protect Malta's economy and businesses so that the country remained secure and economically prosperous.