Budget 2010 round-up
Allowance to ease impact of tariffs increase. Incentives for job creation. €5.82 cost of living allowance. Revision of registration tax on commercial vehicles. Cigarette prices rise
Measures and assistance aimed at encouraging investment and job creation, as well as an allowance to households to ease the impact of the the increase in utility tariffs were announced by Finance Minister Tonio Fenech in his Budget speech this evening.
The Budget also features a €5.82 cost of living increase, a revision of the registration tax of commercial vehicles, financial assistance to unemployed youths following training courses, and financial assistance to students attending post-secondary education who do not receive a stipend. The levy on credit cards is being removed. Cigarette prices are going up.
The Budget, themed Xoghol, Ninvestu b’ghaqal fik u fil pajjiz features a sharp increase in funding to help businesses expand their activities and also attract new investment, particularly in areas such as back office activities, marketing, research and innovation, software development and call centres.
€16 million are being allocated for the redevelopment of industrial zones and new industrial zones in Mellieha and Xewkija. €20 million will go for a new biotech park.
€2.5 million are being allocated for a special fund to help enterprises in difficulties.
There is also a substantial increase in funding for worker training by the ETC.
CHILDCARE ASSISTANCE
Women workers under training will be given financial assistance to pay for childcare facilities and there will also be training for those wishing to offer child care facilities in their own homes. New childcare centres will open in Pembroke and Siggiewi.
There are also incentives for employers to invest in childcare facilities on their premises.
TOURISM
Tourism will see a boost in funding to €31 million with the accent being on new routes and advertising and promotion.
BENEFITS FOR SMEs
Micro industries (those employing less than 10 workers) will be encouraged to invest through a tax credit of up to 40 percent of their investment to a maximum of €25,000 with soft loan facilities for an extra €25,000.
€400m FOR CAPITAL PROJECTS - €44M FOR ARTERIAL ROADS
A total of €430 million will be allocated for infrastructural projects, including €44 million for arterial roads and €14 million for residential roads. Mr Fenech said that next year, the Marsascala bypass will be completed. Valletta Road (leading to Zurrieq) will be rebuilt and a road will be built from Zabbar to SmartCity. There will be upgrading of the Marfa road, the road to Marsa menqa, the Mgarr road in Gozo and Council of Europe Road.
€9m will be spent on the bus termini in Valletta, Victoria and Bugibba.
Funds are also being allocated for the City Gate project, new Park and Ride facilities in Marsa and Pembroke, tourism zones, the power station extension and the power cable with Sicily, and harbour improvements.
€1.5 million will be allocated for Fort St Angelo, with other funds going for the new Barrakka lift and the breakwaters.
€80m will go for the restoration of the bastions, the upgrading of the promenade at St Paul’s Bay and coastal facilities in Sliema, Qawra, and Pembroke. The collacchio in Vittoriosa will be restored.
€60 MILLION FOR IT SERVICES
A total of €60 million will be allocated for IT services, notably e-health and the new ID cards.
PROPERTY TAX
The tax scheme for people who sell their property (not their only home) is to be extended from five years to seven years, enabling such sellers to choose whether to be taxed at 12% of the value or 35% of the profit.
CONSUMER AFFAIRS
Mr Fenech said the government over the coming year intends to set up a Malta Authority for Fair Trade. He said the current voluntary mechanism for the monitoring of the price of medicines will become compulsory so that prices may be contained.
REFUNDS FOR RESTORATION OF HISTORIC PROPERTIE
Refunds of 15.2 percent will be given for the restoration of historic buildings.
Mr Fenech also announced a reduction in the licence fee for satellite equipment used by the communications industry.
There are also tax cuts for film productions, interactive digital media and computer animation activities.
ASSISTANCE TO CHURCH SCHOOLS
Mr Fenech said that Church schools are to be given assistance of 15.2 percent on projects for the extension of their schools – with several having expressed a wish to extend to primary or secondary schools.
HOSPITAL WAITING LISTS
The budget for hospital services includes the allocation of €4 million for a reduction of the waiting lists. Funds will also be allocated for an extension of the Pharmacy of Your Choice Scheme to 50,000.
€61 million will be allocated for the purchase of medicines and the credit period for the payment of medicine suppliers will be reduced to 120 days.
€2 million will be spent on improving Karin Grech Hospital to serve for rehabilitation purposes.
The old people’s homes in Mtarfa and Msida will be extended.
INCREASED ASSISTANCE TO FOSTER PARENTS
Foster parents will see their allowance raised to €70 per week from the current €40 and the eligibility will rise to children up to 21.
COST OF LIVING ALLOWANCE
A cost of living allowance of €5.82 is being given, and it will also be given in full to all pensioners.
SOLAR WATER HEATERS
€8 million will be spent on the scheme to encourage the use of solar water heaters. The minister explained, however, that this assistance will be aimed at low income families.
The introduction of the Smart electricity meters will be speeded up.
LEVY ON CREDIT CARDS REMOVED
The levy on credit cards, currently €16.31 per year, is being removed.
LOWER REGISTRATION TAX ON BOATS
Mr Fenech said the registration tax on boats is being reduced.
REGISTRATION TAX ON COMMERCIAL VEHICLES
Mr Fenech said vehicles of euro 4 and euro 5 specification will not have registration tax while registration tax for vehicles with euro 3 and lower would be based on weight not value.
POWER TARIFFS ALLOWANCE
Mr Fenech said that in order to ease the impact of the power tariffs, the government will give €30 per household plus €25 for each person, such that a single person household will receive €55. The cost of this once only measure will be €10 million.
CIGARETTE PRICES RISE
Duties on cigarettes will rise by 0.15 cents, the minister said.
DEFICIT GROWS TO 3.79%
The Budget figures show that the government is expected to end the year with a deficit of €217 million, or 3.79%. The projections announced last year had been for a deficit of €98.8 million, or 1.6% of GDP).
GDP will this year shrink by 2% but is expected to grow by 1.1 percent next year.
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Carm Mifsud Bonnici resigns after...
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Bundy does not know whether to...
Updated - Jason Micallef demands...
This WAS the night - Kurt makes it...
Petrol price up 6c
In Discussion
Updated - Jason Micallef demands...
Gozo tunnel could take 5-7 years to...
CABS remote controlled aircraft shot...
Carm Mifsud Bonnici resigns after...
Joseph Calleja condemns portrayal of...
Updated: Labour would give...
CABS drone shot down
Second group of migrants arrives
Adrian Vassallo in scathing...
33 Comments
Post comment
Please sign in or create your Account to post comments.
john A Spiteri
Nov 11th 2009, 19:23
Kompli ahseb fis sinjur u naqaslu ir registrazzjoni tad dajsa!!!
Neville Zammit
Nov 11th 2009, 18:17
Ejja nitkellmu fuq il-budget tal-lum u mhux ta 30 sena ilu!
Id-deficit li ghandna u li ser jerga jkollna s-sena li gejja l-ministru qal li minhabba r-ricessjoni.
Jista xi hadd jilluminani u jwegibni dan l-erba mistoqsijiet?
1. Jista l-ministru jkun kredibbli meta jghid li d-deficit ser ikun l-istess bhall-din is-sena, jekk dan il-gvern DEJJEM mar zmerc fit-tbassir tieghu dwar i-deficit? .... u zmerc mhux bi ftit tafux!
2. Jekk id-deficit ta dis-sena u s-sena d-diehla qed isiru minhabba r-ricessjoni, allura id-deficits li kellna kull sena mill-1987 l'hawn (kemm ilu l-pn fil-gvern) ghaliex saru, habba liema ricessjoni saru?
3. kemm nistghu nemmnu lil ministru Tonio Fenech li l-ekonomija s-sena d-diehla ser tiekber 1% jekk is-sena l-ohra qal li ser ikollna tkabbir ta 2% izda minflok kellna tnaqqis ta 2%?
4. Ghal min qed jiftahar bil-budget, jista xi hadd jiggarantixxi li t-taxxi li nistennew li jinbidlu jew jizdiedu, dan isir fil-budget li jmiss u mhux matul is-sena, baxx baxx?
Mike Magri
Nov 11th 2009, 12:36
In my honest openion, i think that first of all a good number of items mentioned by the Minister in his Three Hour Looooooong, Tedious and Weary Budget speech for 2010, are actually, regular Departimentals` internal administrative and managerial policies, and NOT necessarily `budget items`. However WORST of all is the fact of the HIDING from us all of the ACTUAL rise of the Water & Electricity tariffs in Jannuary 2010.. If the Water & Electricity Corporations, realy expect to collect a STAGGERING 85 MILLION euros from our pockets as allready indicated by Minister Gatt on Nov. 7th, then FORGET IT ALL Guys.... THAT`S A A HUGE WHOLE IN OUR POCKETS....!!!!!! Meaning, `ADDIO` once and for all, not only for this Rhetoric Budget and what ever little benefit there might be in it for us all in the meantime, BUT Worst of all is our present style of living, OR WHATEVER IS LEFT OF IT, thanks to GonziPN`s Regime....
Conclusion: Budget and all.. Come next Jannuary, thanks to the expected savage increase of utilities, more middle class families are going to hit under the poverty line in their present style of living...
WHAT A SHAME.......!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Steven Brockwell
Nov 10th 2009, 20:11
anglu vela. how can you gain work experience when you do not work.i guess next year many more will be joining you ????
a. buhagiar
Nov 10th 2009, 17:48
I would to congralute Minister Tonio Fenech for the couragous Budget that was presented yesterday in Parlament. I would like to comment and praise him that my grandchildren will be having a granted that when they are of the age of working ( in few years time) will have a grant place of work to have a decent living and bring up a family in a healthy enviroment.
Keep it up Tonio.
L. Galea
Nov 10th 2009, 17:10
In my opinion this budget is just what our country needs to move in the right direction, in the direction of financial stability and economic growth. Although this plan may not be bullet proof certain decisions had to be taken for the good of our country on the whole. Every country needs a leader and when one is selected in a democratic way, like ours was, we, the nation, need to back him, or her, up and trust their instincts on issues we may not fully understand.
Christopher Debattista
Nov 10th 2009, 16:15
@ Simon Scerri - Why should the opposition respect someone who does'nt respect his own country but his own interests ! They did'nt even mention the water and electricity rise during the budget and did not even mention the cut of 15% from 18% Vat to hotels. The Cola will of 5.82Euros per week is a joke since we will still be taxed on our pay and our employer will also pay the N.I to those scums. What about the corporation tax. Its still at 35% !! Whilst in Ireland is at 18% . HOW ON EARTH CAN WE BE COMPETITIVE and That is why the manufacturing industry is dying, people loose jobs and the deficit and public dept is rising. Instead of creating sustainable jobs.
And the POWER TARIFFS ALLOWANCE is a total joke. Its like taking a whole cake and giving a piece of it back. PLEASE ! WAKE UP PEOPLE
Just as A. Vella said : Just wait for the water and electricity bills to come out! And the national deficit continues to rise!
John Micallef
Nov 10th 2009, 15:46
Weghdiet,weghdiet,weghdiet...............
R.Laiveira
Nov 10th 2009, 12:17
I am already hearing the sarcastic Gonzi laughter ringing through my ears once the new energy tariffs are announced..... ''Kemm hawn min jara sal ponta ta imniehru''.
MARTHESE MUSSETT
Nov 10th 2009, 12:10
@Ivan Scicluna very very TRUE!!
R.Gauci
Nov 10th 2009, 11:59
'The Budget figures show that the government is expected to end the year with a deficit of €217 million, or 3.79%. The projections announced last year had been for a deficit of €98.8 million, or 1.6% of GDP).
GDP will this year shrink by 2% but is expected to grow by 1.1 percent next year.'
You can make a lot of projections and promises but the tough side is in keeping them!!
The above figures says it all !!
Angela Vella
Nov 10th 2009, 11:10
I have been trying to get my first job for a few months now and all employers tell me that I have good credentials but no experience. Now I am very glad that this government has come out with a scheme to provide work experiences for us. Thank you
A Vella
Nov 10th 2009, 11:02
@ C Galea: The country has been lacking sustainability since 1987, and you call this sustainability? Just wait for the water and electricity bills to come out! And the national deficit continues to rise! Sustainability indeed!
mifsud anna
Nov 10th 2009, 10:58
Fl-ahhar telqet tal-credit cards....prosit!
The decision to help us with regards to the tariffs is very welcome - to be honest I think that government gives a lot of help but this is usually to support the low-income class....no objections to that however us middle class are not really helped. This measure is very fair as many families will benefit. Well done Minister Fenech
joanna farrugia
Nov 10th 2009, 10:55
@ simon scerri 1st u and your gov prove what pl said is wrong then let the ppl see who should be ashamed.1 good explain came from zebbug mayor he resigned immediately not like your mp's shame on you who twist facts.by the way pl is not always negative is knows what ppl what or need not like your gov.pl admitted many times when gonzi done something good.
now let see what comes along every month!!! gonzipn always have a hidden agenda.
valerie muscat
Nov 10th 2009, 10:17
@simon scerri: you should be ashamed of your mp's
P Debattista
Nov 10th 2009, 10:01
The opening statement of the Times in this article is: Allowance to ease impact of tariffs increase. That's the way it is. GonziPN is going to increase the water and electricity tariffs, and he didn't even bother to tell us by how much. And then he's going to give us an allowance "to ease the impact"!!!
Tajba, Gonzi. Illum ittini l-krozzi... ghal meta taqtaghli saqajja.
Simon Scerri
Nov 10th 2009, 09:53
I am ashamed how the opposition brought themselves in parliament, arrogant and rude , showing the newspaper Malta Today with an article against Minister Tonio Fenech, lack of respect to minister, children's play but dangerous for the country. Negative is only word from PL. Everyone praised the budget for these hard times(but not everything is on a bed of roses).Also GWU!!! praised it.
The Union privilged by PL!!!!! Yet Joseph Muscat and PL are negative and what is positive they put it negative unbelievable!!!!!!!!!,,,,
No wonder PL, will need years and years to arrange and make a change from A to Z ,not A to D, so they can be one day in government.
mario gellel
Nov 10th 2009, 09:40
HO HO HO, LETS WAIT AND SEE WHAT IS HIDDEN UNDER THE ICEING SUGAR ONCE THE BLADE STARTS CUTTING THROUGH THE CAKE.
valerie muscat
Nov 10th 2009, 09:16
@ C. Galea the chidcare centres will be in Siggiewi and Pembroke. Tonio Fenech mentioned Zejtun, Msida, Santa Venera and Floriana when he was talking about homes for the elderly.
C. Galea
Nov 10th 2009, 09:13
Sustainability is the key. This budget is surely an exercise of setting a sustainable future for our country.
Alex Debono
Nov 10th 2009, 09:03
Viva l-Kont tad-dawl u l-ilma....Nispera li did-darba jitiehdu r-readings ta l-anqas qabel Jannar. Se jinataw 100 Euros ghad-dawl u johdulek 1000 Euro... (billi jinataw 100 xorta KULHADD se jinduna fi zmien 4 months ohra.. li qed ihallas 900) .. Ic-cajta tas-sena din !!:) Kemm qedin sew
Anthony Bugeja
Nov 10th 2009, 08:35
One of the most professional, target-oriented budgets ever. I am sure this is very entrincing to investors abroad.
marthese mussett
Nov 10th 2009, 07:12
Smokers,you need to quit!
Ivan Scicluna
Nov 10th 2009, 04:38
Jiena nixtieq gentilment nitlob il-politikanti biex jieqfu jghadduna passata kontinwament. Il-budgets ta’ Malta m’ghandhomx x’jaqsmu ma l-ekonomija. Fil-fatt jien ma nifhimx sahta fl-ekonomija u nista nghidilkom kif ser ikunu il-budgets ta’ Malta kollha, tul kull term ta’ hames snin, ikun min ikun fil-gvern, minn issa sa l-ahhar tad-dinja: L-ewwel tlett snin ikunu iebsin ghax inkunu ghaddejjin minn zminijiet hziena, is sena ta’ qabel ta’ l-ahhar nillaxkaw ftit, u l-budget ta’ qabel l-elezzjoni ikun tal-genn ghax Alla jbierek inkunu solvejna il-problemi kollha. Viva Malta!
Saviour Cauchi Jr.
Nov 10th 2009, 03:41
This budget does nothing period. Oil prices were at $143.00 doller per barrel in May 2008 ,Today November 2009 they stand at $80.00 dollers per barrel, that's a differance of $63.00 dollers per barrel, but electricity and gas price's never came down to reflect that, The goverment of Malta act's like Oil never came down in price anywhere in the World, that way they can do what they please with that extra money charged to the people of Malta. It time for people of Malta to wake up and see the situation for what it is, A Cash and Carry Goverment that cares less and less of the people, but will do ANYTHING for the EURO. WAKE UP!!!!
emanuel buttigieg
Nov 9th 2009, 23:26
well done for the incentives to support business......especially the tax credits to restore the shop.
WELL THOUGHT
it will support the shops themselves but also create more work for self-employed
joseph cassar
Nov 9th 2009, 23:20
i am really happy, as a sole trader, that tonio fenech is appreciating the role of us self-employed.... we need support...its not just the large companies...we are the biggest part of the economy, glad the government undrestood this
julian caruana
Nov 9th 2009, 22:06
SO MANY WAITED , FOR SO LITTLE.......
Maria Grech
Nov 9th 2009, 21:53
Should Malta have adopted the advice of Dr Muscat, not to join the EU, would we have had this budget or would it have been put forward in an 'Iceland' scenario.
Carmen Bezzina
Nov 9th 2009, 21:51
The government has done well not to reduce the VAT on restaurants. It is better to tax those who can afford eating out than increasing the income tax.
Carmen Bezzina
Nov 9th 2009, 21:44
Well Done to Minister Fenech in his efforts to present a reasonable budget in these difficult times.
C. Galea
Nov 9th 2009, 21:23
Well done to the government for announcing investment in 4 new childcare centres in Zejtun, Imsida, Floriana and Sta Venera. This will help more women to go to work.
Keep up the good work!