Robert Abela on Sunday promised a strong “budget without taxes” saying it will build on last year’s budget, which had also seen no increase in taxes. 

Addressing party supporters on ONE Radio, the prime minister said that contrary to what was happening in other European countries, also recovering from the COVID-19 pandemic, taxes in Malta will not be increasing.

Abela was answering questions about the further easing of measures meant to help curb the pandemic.

Earlier in the week, Health Minister Chris Fearne announced that vaccinated people who came in contact with a COVID patient could spend less time in quarantine if they tested negative.

On Sunday, Abela said health experts had put the government’s mind at rest that it could relax measures, especially considering that 86% of the adult population was fully vaccinated against the virus. 

The take-up in vaccination had had a positive impact on labour in Malta, and the country now needed to face the challenge of increasing its workforce. 

The government, he added, had meanwhile strengthened its support to businesses by extending the MicroInvest scheme, which allowed some 7,000 employers could invest in their companies through tax credits. 

Moody's rating

Abela also referred to Moody’s confirmation of Malta’s A2 rating, again completely ignoring the downward review of the island's outlook from stable to negative.

In its most recent update, Moody's blamed the negative outlook on the government’s debt burden, the Financial Action Task Force’s greylisting and risks linked to the recovery of the tourism sector.

In its reaction to the rating, the PL ignored the negative outlook, and on Sunday Abela insisted the rating is the best one in the past 10 years.

“Moody’s also mentioned challenges which we need to overcome. I believe we will overcome them," he said.

“Remember, under the last PN administration, when people had to shoulder the recession burden, the same rating agency had downgraded Malta’s rating.”

Grand Harbour plans

Abela also referred to a €2.5 million investment in the Kalkara science museum Esplora, saying this was just a small part of the government’s renovation plan for the Grand Harbour.

On Friday, the government unveiled its ambitious Grand Harbour Regeneration plan which focuses on maximising the contribution of the port and creating new opportunities for the communities that live around it.

Abela said that the former power station area, which forms part of the site, will be transformed into one of the nicest areas in Malta with the help of several ministries and entities. 

The Grand Harbour area, he added, had strong economic and social potential, as did the maritime sector.

Over the past four years, the number of superyachts registered in Malta had increased by 65%, while several courses linked to the maritime sector had also been launched.

The maritime sector, he said, was further proof of how Malta could continue growing in the coming years.