Issue link: https://maltatoday.uberflip.com/i/1462258
9 maltatoday | TUESDAY • 22 MARCH 2022 KURT SANSONE ALL public service workers will be entitled to a tax-ex- empt one-off bonus when re- tiring from their government job, Bernard Grech pledged on Monday. The initiative forms part of a package of proposals in the Nationalist Party's manifesto intended to improve the con- ditions of work for public ser- vice employees. However, Grech gave no costings for the measures he listed, adding these will be re- leased in the coming days. "These proposals will cost money but for us this is not an expenditure but an invest- ment… costings have been done and will be published in the coming days," he said. The retirement bonus for public service workers will be equivalent to one-year's wage and will be implemented im- mediately, Grech said during a press conference. "This will be a thank you gesture to those who dedicat- ed their energy in the public service and a proposal that is particularly close to my heart," Grech said. A PN government will also revise and improve pay scales of all government employees to better reflect market prices so that the public service can attract talent. Grech accused the Labour government of side-lining talent to make way for per- sons of trust. "They promised us meritocracy and delivered nepotism," he said. Grech also reiterated a pledge made during his budget reaction speech last year that front line workers in the health and education sec- tors, and the disciplined forc- es will be given an allowance equivalent to four weeks' ba- sic pay. Grech said the bonus to front liners will be self-sus- taining because a PN govern- ment will cut down on the number of persons of trust. A PN government will also strengthen family-friendly measures with a clear weekly entitlement to telework and remote working being imple- mented within the first six months. He said public service work- ers will also be entitled to more sick leave days to take care of their children or rela- tives who live with them. PN pledges retirement bonus for government workers but presents no costings yet Bernard Grech unveils proposals targeting public service workers, promises to cut down money wasted on persons of trust but PN costings will only be out in the coming days want to tax you dividend will be taxed 5% on their first €20,000 derived from these investments. The second €20,000 will be taxed at 7.5%. • Parents will benefit from a scheme whereby they can have any education fees, extracur- ricular activities expenses, as well as sports fees, deducted from their taxable income. • A bunch of tax credits will be available for students en- rolled in undergrad diploma, bachelor's degrees, a higher education. They will be appli- cable for those studying while working (lifelong learning) as well as international students travelling to Malta to continue their higher education in Mal- tese institutions • All company tax arrears accumulated during the pan- demic can be paid back over an 8-year period so long as the company conforms to ESG cri- teria. • ESG-compliant companies will enjoy a 15% tax rate on the first €500,000 profits kept in the company. Meanwhile, over a five-year period, the PN will lower the highest tax rate to 25% for companies and indi- viduals. • They've pledged not to raise any VAT, social security, or in- come tax rates throughout the legislature. • For restaurants and bars, the PN will lower the VAT rate to 7%. • All forms of tax on business transfers, mergers or acqui- sitions will be removed for all companies that comply with the party's Environmental So- cial Governance (ESG) crite- ria. This includes tax on share transfers, and the transfer tax on the inheritance of shares in companies from parents to children. How will you be taxed under ADPD? • ADPD have no specific measures on tax, but state cate- gorically that Malta should not base its economic growth on tax evasion from other coun- tries. • However, ADPD does call for the complete removal of VAT on feminine hygiene products.