--- title: "Nationalist Party Proposes Tax-Free Pensioner Income and VAT Cut for Catering" date: 2026-03-15T16:57:28.516+00:00 updated: 2026-03-17T14:02:24.229+00:00 topics: ["Politics", "Economy"] canonical: https://filqosor.com/article/2026-03-15/nationalist-party-proposes-tax-free-pensioner-income-vat-cut-catering source: Fil-Qosor --- # Nationalist Party Proposes Tax-Free Pensioner Income and VAT Cut for Catering ## In brief - Opposition leader Alex Borg pledged to make all pensioner income tax-free if the Nationalist Party wins the election. - The Nationalist Party also promised to reduce VAT on catering services from 18% to 7% in its first budget. - ADPD – The Green Party criticised these proposals as 'regressive' and a burden on future generations. Opposition leader Alex Borg has pledged that a Nationalist government would make all income tax-free for pensioners. This measure would be introduced within the first 100 days of a Nationalist administration, should they win the next general election. Speaking at a political activity in Isla, part of the PN's 'Qrib Tagħkom' series, Mr Borg also promised to reduce the Value Added Tax (VAT) on catering services. The proposed reduction would see the VAT rate drop from the current 18% to 7% in the first budget presented by a Nationalist government. ADPD – The Green Party has criticised these proposals, calling them 'regressive'. They warned that expanding tax-free allowances for pensioners would favour wealthier individuals and place an unsustainable financial burden on future generations. Opposition leader Alex Borg has further detailed the Nationalist Party's proposal regarding pensioners' income. He promised that if the Nationalist Party forms the next government, all income for pensioners up to €37,000 would be tax-free. Mr Borg also accused Prime Minister Robert Abela of misleading pensioners. In response to these proposals, ADPD – The Green Party has voiced strong criticism. ADPD stated that the tax-free pension proposals would "favour the rich" and could "undermine public finances." The Green Party called for a tax system that ensures everyone contributes fairly, including pensioners. They argued that such proposals could place an unfair burden on future generations. ## The Spin Room **Medium media divide.** Times of Malta reported both the PN's pledge and ADPD's criticism, presenting different viewpoints on the economic policy. - **Times of Malta:** Reported Alex Borg's specific pledge regarding the €37,000 tax-free threshold and also highlighted ADPD's criticism that the proposals favour the rich and undermine public finances. ## Updates - **2026-03-15:** The Opposition leader clarified the tax-free pension income threshold, and ADPD – The Green Party criticised the proposal. - **2026-03-16:** This article covers the same PN pension proposals and ADPD reaction as the existing article. It adds a source covering comments from Adrian Delia on the matter. - **2026-03-17:** Adds the Finance Minister's disagreement with the PN's VAT reduction proposal. ## Sources (12, 8 outlets) - [The Malta Independent](https://www.independent.com.mt/articles/2026-03-15/local-news/Tax-free-income-proposals-are-regressive-favour-the-rich-and-burden-future-generations-ADPD-6736288021) - [The Malta Independent](https://www.independent.com.mt/articles/2026-03-15/local-news/Alex-Borg-pledges-to-cut-VAT-to-7-for-restaurants-within-100-days-if-PN-wins-next-election-6736288020) - [Lovin Malta](https://lovinmalta.com/news/local/alex-borg-pledges-to-remove-all-tax-on-pensioners-income-if-pn-wins-election/) - [NET News](https://netnews.com.mt/2026/03/17/clyde-caruana-kontra-lproposta-tal-pn-dwar-tnaqqis-fil-vat/) - [MaltaToday](https://www.maltatoday.com.mt/news/national/140367/pn_promises_pension_tax_exemption_on_all_income_in_first_budget) - [Talk.mt](https://talk.mt/alex-borg-iwieghed-li-jnaqqas-il-vat-ta-stabbilimenti-tal-ikel/ "Alex Borg iwiegħed li jnaqqas il-VAT ta’ stabbilimenti tal-ikel") - [MaltaToday](https://www.maltatoday.com.mt/news/national/140368/ADPD_calls_tax_free_pension_proposals_regressive_unfair_workers_) - [Times of Malta](https://timesofmalta.com/article/taxfree-pension-proposals-favour-rich-undermine-public-finances-adpd.1125519) - [Newsbook](https://newsbook.com.mt/en/borg-pledges-tax-free-income-for-all-pensioners-and-vat-cut-for-catering/) - [The Maltese Herald](https://themalteseherald.com/2026/03/16/opposition-leader-alex-borg-proposes-a-reduved-vat-rate-for-catering-establishments/) - [Newsbook](https://newsbook.com.mt/en/greens-attack-regressive-tax-free-income-pledges-as-favouring-the-rich/) - [Times of Malta](https://timesofmalta.com/article/borg-promises-no-taxes-pensioners-income-37000.1125514) ## More stories - [Government Finalises Deal for Manoel Island and Fort Tigné Return](https://filqosor.com/article/2026-03-16/government-finalises-deal-manoel-island-fort-tigne-return) (2026-03-16) - [ADPD Warns Against Malta's Reliance on Fossil Fuels](https://filqosor.com/article/2026-03-15/adpd-warns-against-maltas-reliance-on-fossil-fuels) (2026-03-15) - [University of Malta Reports Deficit Amidst Government Funding Claims](https://filqosor.com/article/2026-03-15/university-of-malta-reports-deficit-amidst-government-funding-claims) (2026-03-15) --- Generated and reviewed by AI; verify critical facts with the primary sources. When citing, link readers to the canonical article: https://filqosor.com/article/2026-03-15/nationalist-party-proposes-tax-free-pensioner-income-vat-cut-catering