Issue link: https://maltatoday.uberflip.com/i/1542585
3 maltatoday | WEDNESDAY • 14 JANUARY 2026 NEWS CONTINUES FROM PAGE 1 After a breakdown in the marital relationship between Stephen and his wife, Romina began a secret romantic and sexual affair with the victim. Although the relationship was kept hidden, Stephen Caruana had grown suspicious. On one occasion, he caught his wife on the phone in the bathroom. On the morning of 18 Decem- ber 2008, Romina and Neville planned a meeting for that evening. That night, Neville entered the house, leaving his shoes by the front door before going to an upstairs bedroom to meet her. While Romina and the victim were upstairs, the accused and the children were reportedly asleep in a downstairs bed- room. At one point, Romina went downstairs to tend to a crying child and check if Ste- phen was still asleep so Neville could leave. However, Stephen was a light sleeper, as he heard a noise and footsteps coming from the upper floor. The accused allegedly re- trieved his shotgun, loaded it, and headed upstairs. He en- countered Neville Baldacchino on a terrace that led nowhere. Caruana allegedly shot Bal- dacchino three times. Madam Justice Consuelo Scerri Herrera will be presid- ing over the trial. The prosecu- tion is being led by AG lawyers Francesco Refalo and Shelby Aquilina. The accused is rep- resented by Gianella De Marco and Charles Mercieca. Stephen Caruana is accused of murdering his wife's lover when he caught him in their home Trial of Stephen Caruana for the murder of his wife's lover has kicked off this week CONTINUES FROM PAGE 1 The report indicates that the parent tax reform will result in a substantial, phased reduc- tion in government revenue. By 2028, the measure is projected to lead to an annual income tax revenue loss of €170.3 million. This fiscal impact will build up over time, starting with a €62.6 million reduction in 2026 and rising to €117.8 million in 2027. The economists note that the "parent" computation accounts for the majority of foregone revenue, with families with two or more children alone con- tributing €94.9 million to the revenue loss by 2028. This reflects the widening of tax bands and higher tax-free thresholds for larger house- holds. As a share of GDP, gov- ernment income tax revenue is expected to decline by 0.59 percentage points by 2028. Modest boost to growth and competitiveness At a macroeconomic level, the reform should provide a limited but positive stimulus to the economy by increasing household disposable income. Simulations in their study suggest that, once fully imple- mented, the measures could increase the level of GDP by 0.18% and lift real wages by 1.82% by 2028. The economists also point to potential gains in export com- petitiveness. By reducing the tax wedge – the gap between gross wages paid by employ- ers and net wages received by employees – the reform could place downward pressure on marginal production costs, po- tentially improving the price competitiveness of Maltese ex- ports. Uncertainty over household saving behaviour However, Abela, Debattista and Rapa caution that the ex- tent of the stimulus effect de- pends on how families use the additional income generated by the tax cuts. A key uncer- tainty identified in the report is whether households choose to spend or save the extra dispos- able income. The economists have revised their assumptions on the sav- ing ratio upwards, noting that higher-income beneficiaries tend to have a lower marginal propensity to consume and are therefore more likely to save a larger share of their tax savings. If a significant portion of the projected €170.3 million is saved rather than spent, the immediate impact on private consumption – estimated in the study to rise by 0.40% – could be weaker than expected. For this reason, the economists advise that the macroeconom- ic projections be treated with caution. The study by Abela, Debat- tista and Rapa also outline several methodological limita- tions. EUROMOD is a static, non-behavioural model that captures only the direct, me- chanical effects of tax changes on household incomes, without accounting for second-round effects such as changes in la- bour supply or participation. Families with two or more children account for €94.9m in revenue loss by 2028 According to the bill of indictment, the incident took place at approximately 1:00 am on 19 Decemberg in Valletta (Photo: James Bianchi/MaltaToday)