The Nationalist Party announced how if in government, it would reduce corporate tax for micro-enterprises to 15% and raise the VAT exemption threshold for small businesses to €70,000.

PN leader Alex Borg was speaking during a press conference outlining a set of economic and social proposals aimed at supporting businesses, voluntary organisations and NGOs.

The measures were presented alongside election candidates Adrian Delia and David Pace Ross, with Borg saying the package was intended to strengthen entrepreneurship, support community organisations and ensure that “more money remains in people’s pockets”.

Among the main proposals, the PN said micro-enterprises would see their corporate tax rate reduced from 35% to 15%, while small businesses would have their rate lowered from 35% to 25%. The party also proposed increasing the VAT exemption threshold from €35,000 to €70,000 in annual turnover, a change it said would reduce administrative burdens and allow more small operators to qualify for exemption.

Borg described the measures as fully costed and designed to support long-term economic growth, insisting that they were aimed at strengthening the competitiveness of Maltese businesses.

“We want Maltese entrepreneurs to have the confidence to keep investing in Malta,” he said. “These measures are designed to strengthen that confidence and allow businesses to grow sustainably.”

Borg also announced that training programmes provided by employers would be fully financed by the government, removing the cost burden from businesses that invest in upskilling their workers. The party additionally pledged to provide industrial spaces for small businesses, addressing what it described as a long-standing shortage of affordable premises.

On the voluntary sector, the PN proposed that NGOs and voluntary organisations would receive full VAT refunds on goods and services directly related to their work. It also pledged a 30% tax credit on donations up to €50,000 per year, and an extension of the government property acquisition scheme to NGOs to give them greater long-term stability.

Borg said voluntary organisations played a crucial role in Maltese society, particularly in delivering services that complement government support structures, and argued that the proposals would help them operate more effectively.

During the press conference, several questions were asked, including concerns about the fiscal impact of the proposed tax cuts and whether reducing corporate taxation could lead to a shortfall in government revenue.

In response, Borg said Malta currently has one of the highest corporate tax rates in Europe and argued that lowering rates could stimulate economic activity, investment and job creation, ultimately broadening the tax base over time.

“Malta has one of the highest corporate tax rates in Europe,” he said. “History has shown that when corporate taxes are reduced, over time governments often end up collecting more revenue because the economy grows.”

He insisted that the PN’s proposals are carefully costed and would be implemented in a way that ensured fiscal responsibility.

Election candidate Adrian Delia emphasised the importance of small and medium-sized enterprises to the Maltese economy, noting that more than 90% of businesses locally fall within this category.

He explained that micro-enterprises typically employ around 10 workers and said many were currently under pressure due to high taxation and operational costs. Delia argued that reducing tax rates would provide meaningful relief and allow businesses to reinvest in growth and employment.

He also highlighted the importance of training and skills development, stating that employers should be encouraged to invest in their workforce without being financially overburdened.

“A Nationalist government will finance this training so that employers no longer have to shoulder the expense themselves,” he said.

Delia added that strengthening SMEs was essential for economic resilience given their dominant role in Malta’s business landscape.

David Pace Ross focused on the proposals relating to voluntary organisations and NGOs, describing them as an investment in community wellbeing.

He said NGOs often operate under financial constraints despite delivering essential services in areas such as social support, health and community development.

Pace Ross said the proposed VAT refunds would ease financial pressure on these organisations, while the extension of the government property scheme would give them more stability and enable long-term planning.

“These organisations are a pillar of our communities,” he said. “They deserve the stability and support needed to continue their work effectively.”