Tax credit scheme for small businesses launched

Randolph Spiteri

Jan 20th 2010, 16:48

@John c. Abela

Yes it's true that VAT rates have gone up again in the UK & France. However brief the period was, the consumer benefited however. In Malta the only way is UP !!

Cuts in social benefits unfortunately only serve to make the poor poorer.
The middle class in this case react by cutting down on spending ie. cars, holidays etc.

Excessive cutting of consumer spending will only lead to a stagnant economy, evidence given by the number of consumer-related industries going bankrupt (ie. cars etc.)

The moral is : To have a vibrant and thriving economy, you have to ensure that the people who are most likely to spend do so, and not cut back on spending due to the fear of what's coming next ( higher gas , electrictity prices)

Many people do not qualify for social benefits and at the end of the day they have to pay the higher bills and income tax from their pay check. The only social benefit applicable is the children's allowance which should really be given to those who cannot make ends meet.

John F. Galea

Jan 20th 2010, 14:56

This is a step in the right direction, my compliments.
However I cannot possibly comprehend why, after all the promises made by the Finance Minister, that married couples opting for seperate computation would be taxed seperately even on each respective income from investments, capital gains and other income. This has as yet not materialised.
My wife has a meagre pension but receives dividends on her investment all of which are taxed at source at 35%. On her pension she does not pay tax as she receives less that 8500 Euro annually. Yet she does not receive any refund of her 35% deducted at source as all other income is added onto my income. Hence my wife, because we are happily married, is being derived the right of refund of all or part of the 35% witheld at source.
Before each budget I submit a plea to adjust such an anomally together with my comments but I never received a reply or at least an acknowledgement. However two years ago at Castille the Finance Minister personally promised that such an anomally will be removed
soonest. We, and many others in the same plight, are still hopefully waiting.

John C Abela

Jan 20th 2010, 13:44

Randolph Spiteri

check your facts. Only a couple of countries did the VAT move ..France and the UK. And the Uk has already increased it back again.

Rather...you better check out the impressive list of taxes.....or cuts from social benefits ALL countries have implemented.....France..UK..Netherlands..Denmark...check their budget websites, you'll thank heavens to live on this island!

r ferriggi

Jan 20th 2010, 13:21

the common people ( the 9 to 5 workers wo scrape to me a living) would like to know when WE are going to benefit from ANYTHING in these months of the recession..


NOTHING for us?? no reprieve from anything??!

may i remind the government,,,,,, that yes,,,,, he can help the businessmen as much as he wishes but firstly,,,,, they will be the first to turn on him when they make less profits ,,,,,, and secondly,,,,,, the common people make their profit.

if we run out of money,,,,,, even the businessmen grumble due to lower sales.

and also....... we ar fed up with pre-election gimmicks to woe the voters. . fed up completely.

J.Pace

Jan 20th 2010, 13:16

@M Borg

Maybe you should fire 2 employees :) ! Just joking ...
This seems a good schem. Prosit !
What about the TAX return that many are still waiting to recieve?

Joseph Grech

Jan 20th 2010, 13:15

I have just phoned Malta Enterprise and expressed the opinion that this preferential treatment of Gozitan companies is discriminatory, unethical and unacceptable in a democracy where all citizens have equal rights and standing.
Upon asking the person answering my call whether it would be possible for someone from Malta Enterprise to send in a Comment to explain the situation I was informed that ''No, unfortunately it is not allowed that public officers so such a thing''. The employee is right on this point - government seeks to shut the mouths of its employees!
Therefore I am hoping that the Hon. Tonio Fenech, Minister of Finance, will himself send in a Comment - or a Letter to The Times to explain why Gozitan firms are being given the red carpet treatment. Can he at least declare whether this mistake was done on the insistence of Minister Giovanna Debono? Why do good initiatives have to be muddled up unnecessarily?

F Cassar

Jan 20th 2010, 13:05

Excellent initiative by the Prime Minister..well done!

Joseph Grech

Jan 20th 2010, 12:55

Very good initiative - well done! But it is grossly unfair to treat Gozitan enterprises in this preferential manner! Looks like Minister Giovanna Debono has had things again her way. Such strategies by the administration are deplorable and should be explained to the people. Could Malta Enterprise or the relevant Minister please send in a Comment?

Charles Attard

Jan 20th 2010, 12:38

Well done Tonio, a great stimulus to the economy and especially the small business'!

I.Camilleri

Jan 20th 2010, 12:35

Are we as consumers going to benefit from this ? ( i.e – lower prices ). The way I remember it is that tax is never an expense (as it is passed on in the final price of the object/service). Thus, lower taxes should also be forwarded onto the end client, no ?

M Borg

Jan 20th 2010, 12:35

Whilst I support such initiative I find it rather unfair that companies employing more than 10 persons cannot gain from such schemes. The owners of such businesses would have invested thousands from their own pockets without any assistance and would be unfair that their competitors are getting grants. For example a company employing 12 employees is not eligible whilst its competitor employing 10 persons (therefore considered almost identical in size) gets the grant. Isn’t this unfair competition??

Randolph Spiteri

Jan 20th 2010, 12:34

All very positive.

But how about a tax credit scheme for us honest taxpayers (who have all their income declared) ? We've been promised this last budget but it hasen't materialised yet.

Oh the old excuse . the recession .... Well , other countries in recession have brought down VAT rates and done their effort to boost consumer spending ... What about us ??

We raise gas , water & electricity prices , introduce the idea of sewer tax .. Nice way indeed to encourage consumer spending !!

adrian agius

Jan 20th 2010, 12:24

SMALL BUSINESSES WITH AN ANNUAL TURNOVER OF 2 MILLION EUROS !!! WHAT A JOKE !!!

Michelle Pirotta

Jan 20th 2010, 12:07

Way to go, this is really massive. this is certainly evidence o f the difference from just talking and doing. Getting 40% tax back on an investment is fantastic....and will certainly help to create jobs and move the economy forward