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.