Prime Minister and Labour leader Robert Abela on Saturday drew a sharp distinction between Labour's inheritance tax proposals and those put forward by the Nationalist Party, arguing that Labour's plans would ease financial pressure on families while PN's proposals would create new costs for heirs.

Speaking during the "Isma' Dean" podcast, Abela said Labour would exempt children from paying stamp duty on inherited properties if those homes become their ordinary residence, even when the property was not previously the deceased person's main home.

He also announced that inheritance tax payments on additional properties would be deferred until the property is sold.

Abela claimed that the PN's proposals could leave heirs paying higher taxes in the long run. Using hypothetical examples, he argued that a €300,000 inherited property sold at the same value would attract €24,000 in tax under the PN proposal, compared to €15,000 under Labour's system.

The Prime Minister also unveiled further measures, including removing inheritance tax on certain properties transferred between spouses, increasing tax exemptions on property donations from parents to children, and introducing VAT refunds for families converting homes into separate residences for first-time buyers.

Abela described Labour's package as "socially just" and accused the PN of offering poorly thought-out tax reductions that would ultimately cost families more.