Alex Borg pledges to cut VAT for restaurants to 7% within 100 days if PN wins next election

Alex Borg has pledged that a future Nationalist Party government would reduce VAT to 7% for restaurants and kiosks within its first 100 days in office, as part of a wider package of measures aimed at easing the cost of living and supporting workers and pensioners.

Speaking during a Malta l’Quddiem political activity at the party club in Senglea, Borg said his word to voters would be “a contract”, stressing that his administration would focus on concrete economic measures rather than slogans or political propaganda.

Among the proposals outlined, Borg said a Nationalist government would introduce a reduced VAT rate of 7% specifically for restaurants and kiosks. He said the measure is intended to support businesses in the catering sector while helping reduce costs for consumers.

Borg also reiterated the party’s proposal for the cost-of-living adjustment (COLA) to be made tax free, arguing that workers should not be taxed on an increase designed to help them keep up with rising prices.

A significant part of Borg’s speech focused on the situation facing pensioners. He criticised Prime Minister Robert Abela over what he described as misleading statements regarding tax exemptions for pensioners who earn additional income.

According to Borg, Abela had publicly stated that pensioners would be exempt from tax on all forms of income they earn. However, Borg said that a legal notice presented shortly afterwards in parliament showed that the exemption applied only to pensions themselves, while any other income earned by pensioners would continue to be taxed under the normal system.

He said that when the announcement was first made he had hoped the measure would genuinely help elderly people enjoy a better quality of life. Instead, he argued, the legal notice contradicted the prime minister’s statement.

Borg said that many pensioners today rely on part-time work or additional income not by choice but because the rising cost of living makes it difficult to manage on a pension alone.

“We must respect what our parents built,” Borg said, referring to the pension system and the contributions made by previous generations. He added that a Nationalist government would introduce measures aimed at allowing pensioners to live more comfortably and retain more of their income.

The PN leader also referred to challenges currently faced by workers, highlighting a situation at the aviation park in Ħal Safi. Borg said several workers had contacted him to report that around 50 employees could face redundancy, while others have not received wages since 26 January due to a dispute involving government entities and a private company.

He called on the prime minister to intervene and ensure an agreement is reached so that workers do not suffer the consequences of institutional disagreements.

“These workers have families to feed and responsibilities to meet,” Borg said, adding that the government should act to guarantee that salaries are paid and jobs protected.

Borg also criticised the government’s recently presented Vision 2050 initiative, arguing that it lacked concrete commitments. Referring to sections of the document dealing with mass transportation, he noted that some plans were still listed as “to be announced”.

He questioned how the government could present a long-term national vision while key infrastructure proposals remain undefined.

Despite his criticism of the government, Borg said the country must remain united at a time of growing international tensions. He stressed that political leaders should avoid turning sensitive national issues into partisan debates.

Addressing residents of the Cottonera area, Borg acknowledged that the Nationalist Party has historically struggled to gain strong electoral support in the region. However, he urged voters to look beyond past political divisions and focus on the country’s future direction.

“I am not asking you to forget where you come from,” Borg said. “But to look forward and consider where we want our country to go.”

The event also featured speeches by PN MPs Paula Mifsud Bonnici, Graham Bencini and Adrian Delia, who echoed criticism of the government’s handling of pension tax policy.

They argued that while the government raised the tax-free threshold on pensions to €37,000, only a small percentage of pensioners would benefit from the measure. As a result, they said, many pensioners who supplement their income through part-time work would continue to pay tax on those earnings.

The speakers maintained that the Nationalist Party would continue to push for policies aimed at reducing poverty risks among older people and strengthening social protections for vulnerable groups.

RSS Feed Source: Independent Malta Alex Borg pledges to cut VAT for restaurants to 7% within 100 days if PN wins next election