VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s public administration deficit has narrowed to 2.2% of GDP in 2025, falling below the 3% benchmark set by the European Union for the first time since the pandemic. The improvement in public finances came as direct taxation reached a record level, with income and wealth taxes rising to 15.1% of GDP. An analysis by the Central Bank of Malta finds that the increase was primarily driven by growth in taxpayer payments, rather than an increase in tax rates. The main contributor was corporate income tax, which reached 7.1% of GDP in 2025, compared to an average of 5.3% in the previous decade. According to the Central Bank, the increase recorded in the last two years largely reflects the growth in taxes paid by companies registered in Malta but with the majority of their operations abroad. The Central Bank emphasizes that these companies benefit from Malta’s tax refund system, but still continue to pay significant amounts of tax once the refunds have been made.
– photo IPA Agency –
(ITALPRESS).
