New data published by the National Statistics Office (NSO), a day after the presentation of the Budget, shows that Maltese taxpayers are paying significantly more in taxes than they were just five years ago — contradicting government assertions that no new taxes have been introduced.
According to the NSO, Malta’s tax burden reached 29.3 per cent of GDP in 2024, up 2.6 percentage points from 2023. The figures also indicate that since Prime Minister Robert Abela took office, the overall tax burden has risen by one percentage point, despite a range of incentives targeted at easing the load on certain groups.
In 2019, the year before Abela became prime minister, the tax burden stood at 28.5 per cent.
While the government has succeeded in substantially increasing its tax revenue, this does not necessarily mean that households are better off financially.
The NSO data suggests that although wages have risen, taxes — both direct and indirect, such as VAT — are absorbing a growing share of people’s income. Much of the additional tax revenue is being driven by Malta’s expanding population and the influx of around 160,000 foreign workers, which has fuelled domestic demand and retail activity.
In 2024, the government collected €6.7 billion in taxes, an increase of €1.1 billion over 2023. Direct taxes, mainly income tax, accounted for nearly €1 billion of that rise.
What is the tax burden — and what does it mean for you?
The tax burden represents the share of your income that goes to taxes, shaping both your personal finances and the quality of the public services you depend on. It includes income tax, value-added tax (VAT) on goods and services, and other taxes such as vehicle registration fees and fuel duty.
For the individual taxpayer, the tax burden determines how much of your earnings you actually keep and spend, influencing your disposable income and overall standard of living.
While a higher tax burden can mean greater investment in public services, it also leaves less money in people’s pockets — making its impact a matter of both economics and perception.