In a press conference in Valletta, Alternattiva Demokratika – The Green Party called for social justice and sustainability in Malta’s fiscal policy. AD said this will help finance public expenditure, generate employment and reduce inequalities.
Michael Briguglio, AD Chairperson, said, “In parliament, AD will act as the voice of socially just and sustainable fiscal policy. PN and PL are being irresponsible in promising everything to everyone whilst not speaking about revenue measures, particularly when both agree with regressive and unsustainable cuts in income tax for high income brackets. To the contrary, AD is the only party speaking not only about government expenditure, but also about revenue.
“AD believes in a progressive income tax system, based on the ethical consideration that those who can contribute proportionally more do so. In this regard, we believe that ceilings for low-income earners should be raised, in order that tax-free income for such persons is increased.
“As regards VAT, while it has its advantages, it also tends to be regressive, in that low-income earners who spend almost all their income on consumption pay more VAT proportionately. For this reason, AD supports schemes that keep VAT rates low on products and services that account for a high proportion of expenditure by low-income earners.”
Michael Briguglio continued, “Public sector workers who work additional part-time work in the public sector should be taxed on a part-time basis for such additional work. Efforts against tax evasion should be stepped up, and Malta should also support the proposed financial transactions tax against financial speculation, as proposed by the European Commission.”
“AD believes that the minimum wage in Malta should increase and should be extended to part time and contractual workers.” Michael Briguglio stated, “such an increase would help improve the quality of life of the workers and give them more spending power. An increase would also encourage more people to enter the formal labour market, making work pay, acting as an incentive for increased productivity. At the same time, the Government should step up its efforts to reduce “underground” unemployment.
“The Cost of Living Adjustment (COLA) and compensation should be carried out every 6 months, instead of every year. AD suggests a realistic assessment of the cost of living adjustment is carried out in order that the yearly compensation truly reflects the rise in inflation. Hence, an updated methodology should replace the current one on which COLA is based.
“While co-operatives, small and medium-sized businesses, and certified fair-trade businesses should face a lower tax burden and should be given incentives by the state, taxes on banks and financial companies making windfall profits should increase, thus curbing financial speculation. Measures such as tax breaks, venture capital initiatives and soft-loans should be emphasized for the creation of Green Jobs. Local councils should also have more authority and resources for the creation of such opportunities,” Michael Briguglio concluded.
Ralph Cassar, AD Secretary General, said, “Eco-tax should focus on environmentally-harmful practices that generate excessive waste and pollution, use of resources in an unsustainable manner and speculation on finance and property.
“Property speculation should be taxed from third vacant property onwards, particularly when Malta is a perpetual building site and when a quarter of properties are vacant. This would also encourage the renting and selling of properties, which are kept vacant for speculation purposes and the use of existing buildings rather than building more areas.”
Ralph Cassar concluded, “as regards utility bills, wasteful practices, and not basic use of electricity and water, are to be penalised. Basic use should be subsidised.”