Thursday, November 8, 2012

“The 2013 Budget should address social inequality”

The Communist Party of Malta said that, “the 2013 government expenditure budget should address social inequality which is raising its head. The austerity measures that were introduced along the years have brought about a reduction in the standard of living to families with low and middle income. European Statistic show that 15% of the Maltese population are at risk of poverty, of whom 20% are children.

“The privatisation of gas and other essential commodities results in higher prices for the consumer. The same has happened to the basic consumption of the use of energy". The Party continued that "the Government should revise his privatisation policies on services that are essential to the consumer, and should also introduce progressive measures in the consumption of energy to safeguard basic consumption, while penalising waste”.

“With regards to measures in relation to work, the Party stresses for an increase in the national minimum wage; investment for the creation of free child care centres; amendments in work regulations so that new employment is based on a decent and regular work conditions, and better law enforcement on the private sector to introduce more family-friendly measures”.

“Regarding the pension reform, the Government should address the chaotic situation where pensioners are being separated into two categories, where the present pensioners are being excluded from the reform. The Government’s policy should be one that strengthens the state basic pension, so any dependence on the second pillar is excluded”.

The Communist Party understands that the consolidation of the social structure requires a sustainable taxation system. For this reason the Party objects to the proposal for a reduction in the national income tax-maximum rate, from 35% to 25%. Furthermore the Party envisages for progressive taxation on speculations and windfall profits. The mechanism against tax evasion should also be strengthened. A just society requires a just taxation system.

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