NationalistEconomy & Cost of Living2026-05-07

Annual COLA-indexed adjustment of personal income tax bands

PN commits to automatically raising the personal income tax bands every year by the same Cost of Living Adjustment (COLA) percentage applied to wages. The aim is to prevent fiscal drag — the situation where inflation-linked pay rises push workers into higher tax brackets and partially erode the wage increase.

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Pulled verbatim from the party press release. Not edited.

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Measure 2 of PN's personal tax reform package announced on 7 May 2026. PN commits to legislating an automatic annual upward adjustment of all personal income tax band thresholds by the COLA percentage. This indexation is intended to be a structural protection so that future cost-of-living wage increases retain their real value rather than being partially absorbed by higher tax bands. Announced together with the band overhaul (see related proposal). Source: pn.org.mt press release of 7 May 2026.

Read the original release at pn.org.mt/en/gvern-gdid-nazzjonalista-jnaqqas-it-taxxi-personali-u-jhalli-aktar-flus-fil-but-tal-haddiema-tal-persuni-wahidhom-il-familji-is-self-employed-u-l-pensjonanti/

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