Social justice is at the very core of the Labour Party’s policies. Tackling inequality and poverty by implementing measures that ensure a dignified quality of life for all.

In its electoral manifesto for the forthcoming general election, the Labour Party presents proposals that aim to deliver a brighter future for all citizens of Malta and Gozo: the increase in pensions, support for first-time buyers, unprecedented investment in green spaces and reduced corporate tax for businesses.

Further to these, we want to see Gozitan and Maltese families earning more and living more comfortably.

By reducing taxes and widening the tax bands of income tax, we will be making a difference to the cash flow of our families and enhance their financial well-being.

At 30 per cent, Malta has the lowest tax burden in history, down from nearly 35 per cent in 2012.

But we want and will do more.

A newly-elected Labour government will introduce the most substantial widening of the lower tax bands in our history, which is three times more than the largest increase we have seen since before the 2007 Budget.

Once implemented, these measures will leave the staggering amount of €66 million in the pockets of our families, workers and self-employed persons. Everyone stands to benefit, especially those on low and medium salaries.

The proposal will see that parents will not be taxed on the first €12,200 of their annual income, which means that the first €1,000 of their monthly salary will be non-taxable.

The tax bands will also be widened for single and married persons: single persons won’t be taxed on the first €10,800 of their annual salary and married persons will not be taxed on the first €14,400 of their annual salary.

And this widening of tax bands will be complemented further by more generous cheques with tax refunds that will translate into €24 million in cheques per year.

The Labour Party’s vision is not to leave anyone behind- Jo Etienne Abela

Thanks to these two measures together a person who pays tax will receive a refund from €255 to a maximum of €365, whereas a person who works but does not pay tax will continue receiving tax refunds from €150 to €165.

And, as a result of these two measures, a Labour government will be giving €90 million a year to the people.

This is the largest cut in income tax in Malta’s history after income tax was reduced in every single budget since Labour was elected in 2013. This is indeed a proposal of less tax and more refunds which will help Maltese families enjoy increased financial well-being and have more money to spend on needs and necessities.

We currently have the lowest ever percentage of the population at risk of poverty and social exclusion and these proposed tax cuts will provide a further buffer for our families.

Despite the COVID-19 pandemic, we managed to sustain a stable economy and protect workers from being made redundant through the wage supplement scheme.

Not only did the government shield workers, particularly those on low wages, from being made redundant, but Malta currently has the highest employment rate ever.

I in the next legislature, a Labour government will continue incentivising employment opportunities and rewarding hard work. This is why Labour is proposing to reduce corporate tax by 10 per cent on the first €250,000 of profits to support businesses, stimulate the economy and, ultimately, protect jobs.

And how will this work in practice?

A hotel that employs 20 full-timers and makes an annual profit of €250,000 will save €25,000 in tax. A manufacturing company that employs 10 full-timers and makes an annual profit of €150,000 will save €15,000 in tax. A small IT company that makes an annual profit of €50,000 will save €5,000 in tax.

This measure will see businesses saving money which they can use for staff salaries or to cover other important and necessary costs. This will translate into more income for families, for them to have an enhanced and improved quality of life, which they can enjoy with their nearest and dearest.

Businesses, families, workers and self-employed persons all stand to benefit from the ambitious package of proposals.

This is the Labour Party’s vision: not to leave anyone behind.

Your choice on March 26 will determine whether our country will continue moving forward into the future.

The future is bright for one and all and a newly-elected Labour government will deliver this future for us.

Jo Etienne Abela, consultant surgeon and Labour candidate