A new tax category called “parent computation” was introduced through which working parents were able to save up to €420 each a year in tax.

Finance Minister Tonio Fenech raised the minimum rate of children’s allowance from €250 to €350 for every child and announced a grant of €300 per year to people aged over 80. VAT on private nursing and home help services was removed.

The tax credit scheme for women returning to the labour market was extended for another year and €1.3 million were allocated for three new child care centres.

The government also proposed  an increase in the duration of maternity leave by two weeks in 2012 and another two weeks in 2013, with the cost being borne by the government in the form of an allowance of €160 per week.

Parents of children attending private schools had their tax credits extended while workers saw a cost of living increase of €4.66 per week.

The €35 TV licence was abolished but excise duties on cigarettes and cement were raised.

In other measures, Mr Fenech announced that the government was raising the amount it spends on supporting industry and attracting foreign direct investment to €14.2 million.

Fiscal incentives worth €3 million over three years were to be given to firms consuming more than 2GWhr of electricity per year that invest in energy-saving measures and in clean energy generation.

A total of €16.7 million were  allocated for upgrading the Bulebel and Ħal Far industrial estates and the service charge for industrial estates was lowered to €3.50 per square metre.

MicroInvest, which extends a tax credit on 40 per cent of new investment and new jobs, was extended for another year.

The Malta Tourism Authority budget was increased by €1 million to €36 million and €20 million were allocated for the restructuring of Air Malta.

The minister announced a new Malta Gaming Fund to strengthen the gaming industry through an investment of €150,000.  

The registration tax on old Euro I to Euro III cars was raised,  to discourage their use, and the car scrappage scheme was extended for a further 3,000 cars.

A scheme was launched to encourage the restoration of buildings by individuals and companies. This consisted  of a final withholding tax of 10 per cent of income from rent for residential property and 15 per cent for commercial premises. 

In the health sector, the minister announced plans to introduce colorectal screening

DEFICIT TARGET

Mr Fenech said that Malta’s deficit for 2011 was estimated at 2.8 per cent of GDP, as projected, while the target for 2012 was 2.27 per cent of GDP. The country’s public debt for 2011 was projected to be 70.15 per cent of GDP, while in 2012 public debt was projected at 68.91 per cent.