Alice in Wonderland budget

20131104-214946.jpgThe Maltese finance minister presented his budget for 2014 in Parliament this evening. I saw similarities to the previous budget presented by the Nationalist government. The budget is based on a hefty increase of income tax (+14%), social services revenues (+12%) and VAT income (+16%), while reducing taxation on upper middle class households (from 32% down to 29%) and increasing expenses.

While the increase of COLA, the increase of tax free yearly revenue to 9800€ for families and the reduced tax rate for part time workers! especially woman joking the labour market are welcome, measures regarding environmental protection, public transport and alternative energy were or only vaguely addressed.

One remains very suspicious on the achievement of the targets the government has put forward.

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