Nearly half of Maltese would keep taxes and public services at current levels, making Malta one of the most supportive of the status quo in the EU.

The findings come from the European Commission’s latest Flash Eurobarometer on taxation.

The survey, carried out in all 27 member states in April but published during the past days, found that 46% of Maltese favour maintaining existing tax rates and spending levels. This is well above the EU average of 26% and close to Luxembourg’s 47%, the highest share recorded. Denmark follows at 43%.

This sentiment comes in the wake of a significant reduction in income tax for middle-income earners announced in the last budget and which came into force in January.

Lower appetite for tax cuts than in most EU states

Only 31% of respondents in Malta believe taxes are too high and should be cut even at the cost of decreasing the budget for public services, a figure below the EU average of 39%. But only 19% of Maltese favour higher taxes in return for more or better public services, compared to an EU average of 27%.

Support for higher taxes is strongest in Sweden and Spain, where 42% hold this view, followed by Finland at 40%. Slovakia stands out at the other extreme, with 59% wanting lower taxes even if this means reduced service quality. Malta’s position is closer to countries like Luxembourg and Denmark, where a large share prefers the status quo.

Relatively high tax literacy

The survey found that Maltese citizens are relatively confident in their understanding of the tax system. Fifteen per cent rate their knowledge as “very good”, just behind Greece at 17%, while 47% say their understanding is “good” or “very good”, compared to an EU average of 35%.

When asked which taxes they would prefer to see reduced, 56% pointed to income tax, slightly above the EU average but well below Slovenia’s 72% and Luxembourg’s 70%. Capital gains taxes are the top target for cuts in Malta, with 34% backing this option–the highest proportion in the EU and more than double the bloc average of 16%.

Moreover, if tax increases are unavoidable, 25% would favour higher inheritance taxes compared to 17% across the EU. Support for raising VAT stands at 18% and for housing taxes at 12%, both relatively low compared to the rest of the bloc.

On fairness, 54% believe taxes are “to some extent” paid proportionately  to income while 31%  believe that this is the case “to a large extent”. Only 13% feel that tax rates do not reflect income disparities. The proportion saying that taxes are “to a large extent” proportional to incomes, is well above the EU average of 23%, suggesting comparatively higher trust in the equity of the system.

Ease of filing

Tax compliance remains a mixed picture. Just 45% of Maltese find filing returns easy, below the EU average of 49%, but 24% do not need to file at all–among the highest shares in Europe. VAT is seen as the most difficult tax to handle by 17% of Maltese, the highest percentage in the bloc, compared to an EU average of just 8%.

Support for wealth and environmental taxation

The survey revealed broad support for wealth and environmental taxation. Two-thirds of Maltese (67%) support a minimum wealth tax for the richest 0.001%, which is close to the EU average but far above Czechia’s 45%. Such a measure would only impact around 3,560 in the EU as a whole and a only a handful of people in Malta.

Despite Malta’s reputation for offering tax benefits to foreign companies, a large majority (83%) agree that large multinationals should pay a minimum tax in every country where they operate, second only to Greece at 87%. 

Malta places alongside Portugal and Bulgaria in its backing for taxes on environmentally harmful products with 71% supporting such measures. Additionally, more than half (54%) support higher taxes on single-use products. In both cases, support is above average, reflecting an openness to using taxation as an environmental policy tool. But support for taxing air travel (48%) is lower than most EU countries, possibly a reflection of the fact that air travel is the only meaningful way to connect with the mainland, apart from sea travel.

EU-wide tax policy priorities

When asked about priorities for EU-wide tax policy, 53% of Maltese believe tackling tax avoidance and evasion should be the main focus, slightly above the EU average. Malta also leads the EU in giving priority to tax measures for supporting the green economy, with 30% choosing this option compared to just 7% in Czechia.