The government announced a one-off bonus of €35 today for all those who will not benefit from the scheduled income tax cut for high income earners.
Finance Minister Edward Scicluna in a speech lasting almost four hours confirmed that income tax for high income earners would be reduced from 29% to 25% in terms of a programme rolled out three years ago.
He announced that bus fares will not be raised when the new operator takes over in January, but the subsidy will rise to €23 million.
Petrol and diesel prices will go down by 2c and 1c respectively in January, the gas price will be frozen, but cigarettes, wine and mobile phones will cost more. Licences for cars and swimming pools will also rise. There is also a new 'crane tax' of between €10 and €15 a day.
CREDIT FOR USE OF SCHOOL TRANSPORT
Parents of children in church or independent schools will be given a €150 credit if they use school transport.
Prof Scicluna said that next year, private companies will be invited to join the government in projects to cut hospital waiting lists, maintain the roads, rehabilitate the St Luke’s Hospital building, build a motorsport track and run the Marsa racetrack and the Mediterranean Film Studios.
The one-year partial tax waiver for those who buy a new property is being extended by six months. The capital gains tax will be reformed and the eco-tax will be phased out.
The government confirmed it will reduce electricity tariffs for businesses by 25%. It will renew the feed-in tariff for electricity production from PV panels for those who already have panels and want to invest further .
Tough new measures are being introduced against people aged up to 23, including single mothers, who refuse to work or follow training. They risk losing all their benefits.
The Budget features a raft of measures aimed at helping people with disabilities to find a job and better integrate in society.
BENEFITS FOR LOW INCOME EARNERS
There are also several benefits for low income earners, including a €1,000 grant per child for working couples, as long as both declare their employment. Those at risk of poverty will also get grants as long as their children go to school for 95% of the time.
Payment for maternity leave is being raised to the minimum wage for the last four weeks. There are even more generous increases in the maternity leave of self-employed women.
The minister also announced plans for a scheme where people will be given vouchers when they deposit plastic and aluminium items for recycling.
An amnesty will be given to people who declare irregular receipt of social benefits by February.
The government also announced a number of white papers, including one on whether state school hours should be altered.
See stories in more detail in the Budget Section http://www.timesofmalta.com/budget
The Budget will be discussed on TimesTalk on TVM at 6.45pm tomorrow (Tuesday).
In a press conference after the long Budget speech, Prime Minister Joseph Muscat said the Budget was built on optimism.Dr Muscat jokingly apologised for the lengthy budget speech (the speech was 3 hours 42 minutes long) saying that when a lot was being done, there had to be a good amount of explanation.
The country, he said, had managed to achieve all its expectations, the deficit was narrowed to the targets which had been agreed with EU and this budget would be attempting to achieve the lowest ever deficit recorded in Malta.
“We are doing this because we are not afraid of reforms, of facing challenges,” he said.