Prime Minister Joseph Muscat this morning gave more details of Labour’s promised tax refunds, saying the system would be similar to a bonus, with each worker at the end of the year receiving a cheque which, over time would reach a maximum of between €200 and €340.

The initiative would be introduced gradually every year throughout the legislature with the maximum amounts received at the end. Those with the least income will receive the biggest amounts, Dr Muscat told a Labour press conference. 

He said those persons on a married couple’s tax computation (37,000 people) would receive at least €220 per person per year while those earning the least would get €340 in a bonus per year.

Those on a single person’s tax computation would receive between €200 and €300.
Those working part time as their main employment and earning up to €9000 will get a bonus of €100.

Those on parents’ computation would receive between €220 and €320.
Dr Muscat said the tax refunds would boost the economy by giving all workers more money in their pockets.

He said the measure treated employees and the self-employed in the same manner. Those on a low income who do not pay tax will also benefit.

He said that married couples both working and earning €17,000 and currently paying €2,000 tax would, by the end of the next legislature, receive €560 saving a quarter of their tax.

Persons earning between 30,000 and 40,000 euro would save 460 euro by the end of the legislature, a saving of 4% on their tax.

Dr Muscat also reiterated yesterday's promise that tax on part-time work will be slashed from 15% to 10%. 

Students who get a masters degree will save a year on their taxes once employed and those on a PhD will get a saving for two years. 

The press conference was also addressed by Finance Minister Edward Scicluna, who said Malta is riding a very big wave and the tax refunds can therefore be afforded and will actually benefit the economy. 

Profs. Scicluna said the workings for the tax refund plan had already been carried out. The EU Commission had been informed about this plan.
 
Fielding questions from journalists, Dr Muscat refused to say whether his chief of staff had a Swiss bank account. 

Asked why he continued to defend Keith Schembri despite the police receiving information on potential kickbacks and money laundering, Dr Muscat said he did not interfere in police operations.