Issue link: https://maltatoday.uberflip.com/i/1510683
4 maltatoday | TUESDAY • 31 OCTOBER 2023 BUDGET2024 In and Out: Clyde Caruana's financials Where will the money come from? Income tax €2,542,000,000 Social Security €1,530,000,000 Non-tax revenue €504,312,667 Licenses, taxes and fines €392,775,000 Customs and Excise €333,200,000 VAT €1,454,000,000 The Finance Minister is projecting an increase of €160 million in revenue from income tax when compared to the revised estimate for 2023. No changes to the income tax brackets were announced, which means that some workers could end up paying at a higher tax rate as a result of the COLA increase. Social security contributions are expected to yield €111 million more in 2024 when compared to the revised estimate for 2023. The NI rate remains static at 10%, capped at a maximum, for both employees and employers. Government is expecting a significant drop in non-tax revenue in 2024, mainly on the back of reduced EU grants. Non-tax revenue will decrease by €139.6 million. A significant portion of non-tax revenue will come in the form of EU grants that will contribute €182.6 million next year, a far cry from the €349 million in 2023. This revenue head will contribute just €9 million more in 2024 when compared to 2023. An increase in income from duty on documents will be offset by lower revenues from gaming taxes, driving licences and motor vehicle registration tax. Customs and excise taxes will only contribute €8 million more to public coffers next year. No changes in excise taxes and customs duties were announced. The Finance Minister is projecting an increase of €111 million in revenue from VAT, suggesting higher consumption. No reduction in the VAT rate on restaurants and catering services was announced as requested by stakeholders in the sector. Income tax remains the principle source of income for the government despite tweaks to the system that will see people pay less tax. Hot on the heels are social security contributions and VAT, each of which are expected to yield more next year. This is how government's income streams will look: