AD takes Alfred Sant to task
By Julian Manduca
Alternattiva Demokratika, the Green Party, has taken Alfred Sant to
task over the Labour Partys proposal to introduce tax cuts and
bonuses in the first few months of a Labour government.
AD said the Labour Party in government will not make ends meet if elected
and called for changes to Maltas tax regime during the past few
days. AD believes the emphasis should change from tax on income to taxes
on products that are damaging to health and the environment.
AD spokesperson for Economic Affairs Noel Agius said, "Dr Alfred
Sant wants to deny Malta from Lm81 million net incoming funds from the
EU and is effectively proposing to further reduce government revenue
by proposals such as the two-month tax exemption promise.
"Yet at the same time he is promising everything to everyone. For
example he is promising to construct roads, to upgrade Malta's infrastructure,
to solve Malta's environmental problems and to close Maghtab."
"Dr Sant contradicts himself when he says that he will spend more
than Lm 25 million on tax cuts and bonuses and still reduce Maltas
deficit. Given that Malta faces deficit problems and that the bulk of
government expenditure is on wages and social benefits, it is clear
that Sant's proposals simply do not add up.
"At best, Sant's proposal may have minimal benefits in the short
term via a very small consumer boom. But the big picture, productive
export led investment, which is so dependent on infrastructure would
be in jeopardy as there will be less funds for improvement projects.
Also such tax breaks would mean less money for essentials like education
and health care.
"Sustainable fiscal policy seeks to redirect the emphasis of taxation,
and not put forward opportunistic proposals such as Dr Sant's. In this
regard Alternattiva Demokratika is proposing that the tax burden on
income and the economic initiative of the Maltese and Gozitan people
should be lightened, but the tax burden should be shifted on activities
harming the environment and wasting our limited resources. Furthermore,
efforts to control tax evasion should be strengthened," Noel Agius