Updated 1030
Decisions on corporate taxation expected in Budget 2025
During a pre-budget discussion hosted by the Times of Malta Finance Minister Clyde Caruana said that he hoped to make announcements by the budget, which is expected later this month. The government is negotiating with the European Commission to retain the imputation system, allowing foreign companies to pay a 35% tax, with a 4/7ths rebate, effectively reducing it to 15%. Caruana explained that the key issue is the number of Qualified Refundable Tax Credits (QRTCs) Malta can offer, with the government pushing for more than the EU currently supports. The Minister also expressed optimism about the EU’s revised excessive deficit procedure, calling it a fair system with reasonable spending caps. He emphasised that while his priority is maintaining the government’s overall fiscal health, individual ministers should be accountable for their own spending. (Times of Malta)
Finance Minister say TCNs still needed in economy; announces partial KM Airlines privatisation
Finance Minister Clyde Caruana insisted that foreign workers will keep on playing a major role in Malta’s economy, acknowledging that without Third Country Nationals the economy would collapse. He suggested a shift towards higher-value economic sectors by proposing higher taxes for companies operating in labour-intensive, low-productivity industries, clarifying that this was his personal view, not government policy. Caruana also revealed that 30-35% of KM Malta Airlines must be privatised, following an EU mandate. The Minister also noted a significant rise in tax revenue, with an increase of €500 million in 2023 and €300 million in the first half of 2024, expecting further growth by year-end. He attributed this to improved business tax compliance, with 90% of returns now filed on time, compared to just 30% previously. (Times of Malta)
Morning Briefing
Vitals: Defence accuses Court expert of conflict of interest
Defence lawyers for former prime minister Joseph Muscat and others in the Vitals corruption case have questioned the independence of court expert Samuel Sittlington. In a court session marked by frequent objections, the defence targeted Sittlington, a financial crime expert involved in the Vitals inquiry, questioning his qualifications and his role. Sittlington, a former police officer with 20 years’ experience in economic crime, clarified that he was appointed to assist with data gathering and analysis, but did not author the report. His involvement in organising documents for the magistrate became the focus of the cross-examination. (Maltatoday)
PM expresses hope in solution on MCAST collective agreement
PM Robert Abela expressed optimism that renewed talks could secure a new collective agreement for MCAST lecturers after nearly three years without one. His comments followed the union’s call for industrial action over stalled pay negotiations, including directives limiting lecturers’ contact with students and the administration. In a TV interview, Abela voiced confidence that discussions would lead to a fair pay increase, similar to the ‘best-ever’ agreement reached with teachers. On the other hand, the PN Opposition highlighted the consequences of the government’s inaction on MCAST’s 12,000 students and nearly 1,000 staff members, stating that the ongoing uncertainty has fostered a tense atmosphere at the institution. (Times of Malta)
No more suspended sentences for assaults on public officers – Ministry
The Ministry for Home Affairs, Security, and Employment has announced changes to laws governing assaults on public officers. Minister Byron Camilleri stated that the government plans to introduce legal amendments that will eliminate the option of a suspended sentence, increase prison terms, and raise fines. Dr Camilleri noted that these changes are the outcome of extensive consultations with the police and their representative unions, and will be presented in Parliament on Monday. (TVM)
