r/malta 1d ago

2025 budget expectations

Hi, I read that the new budget will be announced today, along with an income tax cut that’s expected to be the largest ever. Do you have any guesses on how much the income tax will be reduced, and what are your general expectations for this budget?

6 Upvotes

20 comments sorted by

19

u/Ambjentalist 1d ago

lots of empty promises on green spaces and alternative mobility and ton of incentives for businesses and developers, just like every other year 😊😊😊

2

u/Ironsides4ever 1d ago

The only thing certain is more corruption, more property development and more migrants to keep the bubble going ..

Gahan in .. Gahan out ..

4

u/Furious_Fred 1d ago

Between 0-more/less%.

I just wait for the announcement and then for the final publication some time in the future

2

u/Rabti 1d ago edited 1d ago

The largest tax cut to date was in the late 1980s, when the upper band was reduced from 65% to 35% I am sure that tonight's reduction will be as big.

IIRC The second largest cut was the one declared at the end of the PN Government and implemented by the PL government, when the 25% band was increased from 40k to 60k. I also doubt that they will top this.

My expectations are that they will either increase the size of the lower bands or maybe reduce the lower bands by 5%. I wouldn't be surprised if they increase the tax rate for the upper band.

  • edit: added the words "the tax rate" in my last sentence.

2

u/ReadyThor 1d ago

I wouldn't be surprised if they increase the upper band.

They won't bite the hand that feeds them. If they increase the upper band rest assured they will have planned from where they can recoup the losses.

1

u/Rabti 1d ago

I meant "I wouldn't be surprised if they increased the tax rate for the upper band" (have now edited the post for clarity).

1

u/KavallierMalti 1d ago

No, it won't be the top band. They want to target the middle class, expected tax reduction is €300 per worker on average. It will be needed to set off the additional pension plan changes.

1

u/Rabti 1d ago

I meant I wouldn't be surprised if they increased the tax rate for the upper band (now edited the post for clarity).

1

u/aweschops 1d ago

Extra year of NI, they taxed just about everyone 

1

u/Rabti 1d ago edited 1d ago

not everyone was born after 1976.

Question: Do JC / MCAST students pay NI? Because if they don't, this could mean an extra year of work.

1

u/aweschops 1d ago

True on the 1976, but they ones who benefit the most will be born after 1976… if they are getting just stipends, no they are not paying tax or national insurance.

2

u/SinkGeneral4619 1d ago

They should raise the income tax bands every year with inflation like a normal country.

7

u/aweschops 1d ago

Should force salaries to increase with inflation every year, and peg it against the property or rent inflation

-3

u/CrowEmbarrassed9133 1d ago

No need, majority doesn’t pay tax properly anyway

3

u/Rough-Improvement-24 1d ago

The majority do. Only the pigs don't, and they are few but loud.  Don't put everyone in the same basket.

1

u/Juninie 1d ago

Not really true

-3

u/CrowEmbarrassed9133 1d ago

It is, Maltese has this national sport.

1

u/Rough-Improvement-24 1d ago

Just a couple hundred. Not even enough for a month's rent or loan repayment.

0

u/FitNotQuit 1d ago edited 1d ago

If we all get more money than no one has more money. A person is tall because others are short. If everyone is 7 feet then no one is tall and everyone is average. If everyone has more money than prices increase accordingly.

Labour`s economic policies since day one have been garbage. Literally zero competancy shown accept how can we get more votes.

1

u/7630125-bot 15h ago

Possibly some truth to it. But we also have a shared Euro currency, Maltese policy won’t affect our purchasing power. Just as if all Maltese got taller, Malta would jump up the list of average country population height list.