Budget 'heavy on management and education'

A budget heavy on management and education is how the Malta Institute of Management described the 2007 Budget.

The MIM said it appreciated the funds allocated to education but it is unfortunate that it has once again taken an "old style" approach and has not stimulated and encouraged the efforts made by NGOs and private enterprise. The budget itself contradicts the government's vision on education and the claim that it appreciates the efforts of the private sector, the institute said.

"The government has once again failed to review the tax laws and the anomalies within them that are hindering investment in education by the private sector," it said.

MIM said it is disappointed to note the government has postponed real tax reform once again. "Tax reform does not mean that one reviews the tax band widths," it said.

With respect to the Venture Capital Fund, the MIM believes that, once again, the government has failed to understand the issue on access to finance and what is needed to really launch such a fund.

"First and foremost there needs to be a review in legislation and also to clarify under what laws certain initiatives fall. MIM is pleased to note the initiative taken by the government with respect to part-time employment. This gives managers a new tool for planning and MIM is certain this will incentivise part-time employment. The anomaly in overtime, however, still seems to be there.

"MIM regrets to note that the government has not taken appropriate measures in the light of the introduction of the euro. MIM would have expected that the government takes measures the NECC cannot take. It is only the government that can assist businesses through this process.

"In this respect, it would have made sense to introduce fiscal incentives on the costs incurred in the changeover process," it said.