The Malta Independent 21 October 2026, Wednesday
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Momentum calls for higher minimum wage, vacant property tax, and economic reform

Wednesday, 21 October 2026, 09:26 Last update: about 54 minutes ago

Momentum has published its Pre-Budget Document 2027, outlining a wide-ranging series of economic and social proposals designed to build a fairer Malta, support working families, and improve the quality of life across both Malta and Gozo.

At the core of the political party's recommendations is a significant push to improve living standards by raising the national minimum wage to 360 euros per week, marking a 139 euro weekly increase intended to help workers afford basic necessities and live with dignity. Alongside wage reform, Momentum is proposing targeted property measures, including a new tax on vacant residential properties that specifically exempts a person's first secondary home to safeguard holiday property owners.

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To stimulate economic growth and support compliant businesses, the party advocates reducing the tax rate to 25 percent for self-employed individuals and companies that remain fully up to date with their filings and tax payments. Additional commercial incentives include capital gains exemptions for firms that establish employee share-ownership schemes, alongside dedicated tax perks for businesses generating activity around intellectual property. Creative professionals, including musicians and artists who enrich the nation's cultural landscape, would also benefit from tailored tax incentives under the proposed plan.

The pre-budget document further addresses infrastructure and workforce dynamics by proposing a tiered infrastructure fee for businesses where foreign nationals make up 30 percent or more of the workforce. To counteract brain drain, Momentum envisions tax incentives for Maltese nationals living abroad who hold Level 7 or Level 8 qualifications, as well as fresh graduates during their first five years after graduation, encouraging them to return or remain in the local labor market.

Public sector efficiency is another key pillar of the proposal. Momentum calls for a comprehensive audit of the public service workforce to identify redundancies and inefficiencies, suggesting that excess staff be offered voluntary severance packages or secondments to the private sector. On the environmental front, the party proposes incentives to promote car-pooling, public transport, energy use intensity measures, and battery storage investments.


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