Labour’s corporate tax proposal does not apply to shareholders – Caruana

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Labour’s proposal to cut corporation tax by 10% will apply to profits that remain in the business, and any dividends passed on to shareholders will be subject to tax structures, Finance Minister Clyde Caruana said on Friday. .

The proposed tax of 25% – up from 35% – would only be applicable on the first €250,000 of profits generated by the business, he said.

Speaking to the media, he said that when he spoke about the 200 million euro impact of the war in Ukraine on Thursday, he was referring to the further increase in gas and fuel prices.

He added that Europe is seeking to become less dependent on Russian gas, and that is why fuel and gas prices are expected to rise.

The 200 million euros I was referring to on Thursday refers to the additional price increase expected for us to produce electricity and fuel for our country, he said.

Asked whether the war in Ukraine will affect the PL government’s proposals, Caruana said this conflict “has been building up for a long time”. He added that the PL proposals take this into account.

“I must once again note that the way we present our measures and how much they are going to cost, and when they are going to be introduced has been thought out so that Malta’s economy can continue to flow as it has during the pandemic. “, he said.

He added that he had no problem defending the PL’s electoral manifesto and its proposals as the country’s economic wheel is expected to keep turning in the coming months.

Caruana said the name of the game for the coming months will be on the ability to control inflation because if Malta manages to do this when other countries fail to do so, it will continue to be a complete country.

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