Watch: How having more children could shrink your tax bill

The government wants you to have babies and this is how it's doing it

It is simple: the government needs you to have more babies.

Malta's lowest birth rate in Europe means the population is shrinking and Finance Minister Clyde Caruana has long-warned this will drive the country into a wall of economic and social consequences.

Which is why in Monday's budget speech he announced a dramatic tax cut for families who have two or more children.

More babies, less tax: Malta’s new budget in simple terms. Video: Antoine Farrugia Lauri

But as anyone who has ever paid taxes knows, understanding tax is as daunting as having to pay it.

In this video explainer, journalist Mark Laurence Zammit explains it in simple terms with the help of financial coach Patrick Debattista, using books to illustrate how much tax families with children will pay as from next year.

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