Herman Grech
Tax credits for small businesses in Budget
The government will announce tax credits for small businesses in tomorrow's Budget, The Sunday Times has learnt.
An estimated 30,000 businesses, which employ less than 10 workers each, will benefit from the measure as the government attempts to boost employment. Business owners will be able to take advantage of tax credits if they take on more employees, renovate their structures and invest in new equipment, sources said.
The government is also expected to introduce a microfinance scheme funded by the European Union. Microfinance is the provision of financial services to low-income clients, small businesses and the self-employed.
Over 140 companies will also benefit from €8 million from the second instalment of the European Regional Development Fund.
As well as complaints about hefty water and electricity tariffs, employers have objected to the cost-of-living allowance expected to be announced tomorrow.
When contacted yesterday, Finance Minister Tonio Fenech said the 2010 Budget would focus mainly on the creation of jobs.
"We need to address the international economic crisis and therefore we must incentivise work through businesses at large," Mr Fenech said.
The minister said the government had done its utmost to ensure there would be no tax increases in tomorrow's Budget, in a bid to maintain economic stability.
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Mario Mifsud
Nov 8th 2009, 20:37
Tax Credits?
I thought this goverment had alreday given tax credits when he gave amnesty on tax
It is only the worker who is not given any credit over and over again by this goverment
Oh sorry I forgot the energy saving bulbs we got for free
Alfred Grima
Nov 8th 2009, 18:27
This government brought the small business community on its knees by introducing all sorts of new regulations which cost hundreds of Euro to be implemented. One needs to remember that all this is being forced on the business community in the middle of an international economic crisis. As far as I know other countries took years to implement such regulations.
More so the hefty water/ electricity tariffs, gas and fuel prices which are on the rise on a monthly basis did not help either with the consequence that small businesses had to close down or lay off part of their workforce. On the other hand this government is using two weights and two measures between big businesses and small businesses when it comes down to National Insurance and Tax/Vat.
So therefore, if Minister Tonio Fenech want us to believe that he is doing his best for the revival of our economy, first and foremost he need to tackle this discrimination, do not add further financial burden, with the result that our products are less competitive, and forget this budget gimmick while start to act according to the countries needs. By doing so, we will safe guard our jobs.
Frank Mercieca
Nov 8th 2009, 11:09
It makes more sense to tackle crises when they break out and not when a crisis is nearly over the the companies bankrupt!
Andrea Ciantar
Nov 8th 2009, 11:07
How can I plan competitive prices for my goods if I am not even able to calculate the production costs since I have no idea what the utility rates will be next year. So I have to consider the worst case - making my products less competitive and putting an extra financial burden on the consumer!
Sean Falzon
Nov 8th 2009, 11:05
Tax credits are good for companies which have capital to invest. But how can a company save up capital to invest with the highest corporate tax rate in Europe?
Carl Rizzo
Nov 8th 2009, 11:03
So 30.000 businesses have to go begging to Malta Enterprise? What if those small enterprise do not have the capacity to do all the required paper work?
Carissa Calvagna
Nov 8th 2009, 11:01
The problem with tax credits is that due to the fact that Malta has the highest corporate tax in Europe companies cannot save up capital but instead are forced to issue the profit at the end of the year as dividends to the shareholders. It would more help if companies could actually build up some capital!