A Nationalist Government would remove all inheritance tax and stamp duty on properties and family businesses, in what party leader Alex Borg described as an “unprecedented” set of measures.

Borg was speaking at a political rally in Birkirkara on Wednesday evening when he announced three proposals concerning inheritance tax.

In Malta, individuals must pay a tax – called the Causa Mortis – of 5% on the value of immovable property once the property’s owners pass away for its heirs to take control of it.

Borg described this inheritance tax as a challenge which many difficult to keep up with.

“I am reminded of a young couple who I met during the [leadership] campaign last summer, and the woman in the couple had just lost her mother. She was sad obviously because she had lost her mother, but more so because she knew that she would soon have a bill of thousands of euros of taxes on properties she was going to inherit,” he said.

“So, her parents worked for their whole lives to have property that they can leave to their children, but up until today, they have a challenge to receive the property because they must pay thousands of euros which create an even bigger challenge to their cost of living,” he added.

Under a PN government, this tax would be removed, Borg announced to cheers from supporters present.

Also removed would be the succession tax on family businesses – both in terms of shares and immovable property, Borg announced to more cheers. Likewise, a PN government would remove the taxes on property donations between members of families, Borg said.

Borg described these measures as “unprecedented” and which will impact everybody.  He also said that they were the first in a series of “revisions” to Malta’s taxation system that the party will be proposing, starting from Thursday.

“We are determined to implement these straight away, and not to wait until the eve of an election,” Borg said.

Borg announced the proposals after reiterating several of the PN’s already announced measures for new economic sectors.

Among the points mentioned were the PN’s ideas for a Mediterranean Fuel Hub off Hurd’s Bank – which Borg said would generate up to €450 million in three years – and an investment in the data, AI and "newspace" sectors, alongside the creative economy – which would generate €100 million over five years.

“We aren’t going to promise to spend without telling you how we will first make money: first, we have shown you how we will make money, and now we will show you how we will invest it in you,” Borg said.

He placed emphasis on the Mediterranea Fuel Hub, which came under the microscope earlier in the day after Borg’s counterpart Robert Abela claimed that the man behind the idea is “Malta’s biggest fuel smuggler.”

“He thinks that by making this statement he would break our proposal – a proposal built by the best minds in the sector and which the Malta Maritime Forum endorsed today and said that this is what the sector needs,” Borg said.

“We need to be clear, however, as these allegations are irresponsible,” Borg continued.

He said that nobody expects a political party leader to make such a baseless accusation in the middle of an electoral campaign, and said that he categorically denies them. 

“The country knows what happened in the last 13 years when we had ministers consulting with criminals.  You can put your minds at rest that I will not consult criminals – I will consult the Maltese and Gozitan people,” Borg said.

He challenged Abela: “Go to the police and file a report, because I have nothing to be afraid of.”

“We are the underdogs,” Borg told supporters as he concluded, “but with you we are a real force and a real party.”

“This is the party of the nation, and this is the moment where your country is calling you.  You must say ‘here I am, and I’m ready to do my part’,” he concluded.