The government is preparing income tax cuts in the forthcoming budget which, for example, will see parents earning up to €1000 a month no longer paying income tax, Prime Minister Robert Abela said on Monday.

Speaking at a campaign event for Saturday's European Parliament and local council elections, he said that the government had promised tax cuts in its electoral manifesto and would introduce measures for the middle class in the forthcoming budget. To this end, parents earning up to €1,000 a month would no longer be charged income tax.

He said the measures would inject €600 a year for middle-class families and would constitute the biggest ever tax cut introduced by the government.

The new measure will be introduced in the October budget and existing measures would not be removed, Abela said. 

He also promised that the budget would feature further pension raises and other measures, even though an election was not due.

He underscored the need for the people to give the government a strong vote of confidence on Saturday.

The prime minister underlined various other measures taken by the government, including the energy subsidies and a €1,500 allowance over three years for families whose children are in post-secondary education.