The first €1,000 of people’s pay is now tax free, Robert Abela said on Sunday.

Speaking during a political activity, the prime minister touted the “historic” widening of tax brackets during last week’s budget.

Those paying income tax at the single rate will not pay any tax on the first €12,000 earned. 

Workers are expected to save between €375 and €675 thanks to the new tax bands.

Abela said lower taxes translate into more consumption and economic confidence.

Malta’s economic growth has more than doubled compared to 2012 under a PN government, Abela said.

“A PN government raised taxes and debt. We decreased taxes and decreased the debt to GDP ratio”.

When combined with the increase in the children’s allowance, a medium-income family with two children will see its income increase by €1,800, Abela said.

Abela said if the Opposition had its way, energy bills in Malta would have risen in tandem with those abroad.

He claimed the Opposition leader wanted to privatise energy distribution, which would also inflate bills.

“Instead of this, we invested record amounts in electricity distribution. We promised people peace of mind and stability. This is what we have delivered,” Abela said.

The prime minister speaking in Marsaxlokk on Sunday.

Abela mocked the Opposition for “wheeling out” ex-PN secretary general Paul Borg Olivier in a bid to “gag” the government’s budget advertising on TVM.

The PN took to the courts last week to halt “partisan” adverts about the budget aired on the national broadcaster.

“In their time, they didn’t use to advertise the budget. They want us to forget it. People used to worry when October approached. Now people look to see what they will gain from the budget. You know where you stand with us,” Abela said.