The Nationalist Party has proposed raising the maximum tax threshold to €80,000 and tying all tax bands to COLA adjustments, alongside a €1,000 skills wallet for every adult, in a wide-ranging reform package it says is designed to increase take-home pay and stop inflation-driven wage increases from being taxed away.

The proposals were presented during a press conference at PN headquarters by PN leader Alex Borg and shadow minister Adrian Delia, who said the measures form part of a broader effort to make Malta's tax system more responsive to the cost of living and more supportive of workers and families.

Under the plan, the maximum 35% tax rate would only start applying on income above €80,000, a significant increase from €60,000. The PN said this change would be paired with a full restructuring of tax bands, affecting single persons, couples, families and pensioners, with Delia arguing that the overall package is aimed at ensuring more income remains in households.

A central pillar of the reform is the automatic adjustment of tax bands in line with COLA. Borg said this would ensure that every COLA increase is matched by a rise in tax thresholds, preventing workers from being pushed into higher tax brackets simply because their wages increase in line with inflation. He said the measure would apply across the board and is intended to ensure that COLA remains fully reflected in net pay.

Delia said the mechanism addresses what he called "fiscal drag", where inflation-linked wage increases gradually increase tax burdens without improving real living standards. He said the change would affect around 300,000 workers and effectively guarantee that COLA increases are not eroded through taxation.

Another key proposal is a universal "skills wallet", under which every Maltese citizen aged 18 and over would receive €1,000 every three years to spend on accredited training courses. Borg said the scheme would be automatic, not means-tested, and aimed at encouraging lifelong learning, particularly as the labour market adapts to artificial intelligence and other technological changes.

He described the skills wallet as an investment in workers' capabilities rather than a short-term incentive, saying it would support employees, self-employed people and pensioners alike.

The PN also proposed exempting the first €10,000 of income from part-time work and overtime from tax, alongside measures making income from hosting foreign students tax-free and granting National Insurance credits to parents who temporarily stop working to provide care.

Delia said the overall package is expected to return between €230 million and €265 million annually to households once fully implemented, increasing disposable income and stimulating domestic consumption.

He added that Malta's wage gap with the European average remains significant, with local salaries trailing by nearly €12,000 per year, and said the reforms are intended to strengthen purchasing power in a structural way rather than through one-off measures.

The proposals also include sweeping changes to inheritance and property taxation, including the removal of tax on inheritance transfers, the abolition of succession tax on family businesses, and the elimination of stamp duty and taxes linked to property transfers arising from inheritance or donations.

The PN said all measures have been fully costed and would be implemented by a future Nationalist government. Borg said they form part of a wider economic strategy that includes investment in maritime infrastructure, artificial intelligence, data, New Space and cultural industries.

The PN also launched an online calculator to allow interested persons to check what they are paying in tax and what they will pay under a Nationalist government.

During the press conference, The Malta Independent asked how the PN intended to finance the proposals while also promising lower utility bills and increased public investment without raising national debt or cutting public services.

Delia replied that the reforms should be seen as investment in economic growth rather than pure expenditure, arguing that developing new sectors would expand the country's revenue base over time and make the package sustainable.

The newsroom also asked whether the PN would publish detailed costings and economic modelling before the election so the public could assess the proposals. Delia said the party would be transparent and would also launch an online tax calculator to allow individuals to see their estimated savings.

A further question from the newsroom focused on what concrete measures, beyond tax reductions, were being proposed to improve wages and quality of life. Delia said the wider strategy aims to attract higher-value industries and improve productivity, which he said would ultimately translate into stronger wages and better living standards.