The Malta Developers Association is delighted that four of its main Budget proposals were endorsed by the government, which will give a further boost to the property market, according to President Sandro Chetcuti.
The scheme whereby first-time property buyers had a portion of their stamp duty waived is being extended to December 2016.
Measures were also announced to enable the sale of property by the heirs of vacant dwellings caught in litigation.
Two other measures focus on the slashing of stamp duty by half on properties within Urban Conservation Areas and a 15 per cent final withholding tax on properties rented out for commercial use.
These were all measures put forward by the MDA. “These are great initiatives that will further boost the property market. There were other suggestions we made that were not included but we are confident these measures will make a difference, also for the environment,” Mr Chetcuti said.
Environmental NGOs cautiously welcomed some of these initiatives. Maria Grazia Cassar of Din L-Art Ħelwa said: “While there are many positive actions proposed in the Budget, we feel the government is not doing enough to direct proposals towards existing buildings and structures. The biggest disappointment is its insistence on development in Outside Development Zones.”
Government is still insisting on ODZ development
The organisation referred to the American university scheduled for ODZ land in Żonqor, Marsascala, and the St Paul’s Bay school.
Flimkien għal Ambjent Aħjar also welcomed the Budget measures to regenerate urban conservation areas through incentives on the sale of properties and speeding procedures for those caught in inheritance disputes, as well as proposals for the restoration of Lower Fort St Elmo.
FAA also said sanctions for abandoned commercial premises were positive, but the organisation said it was disappointed to note the absence of measures to help owners repair old properties, especially Maltese balconies. The 150 per cent reduction of the taxable value of donations to heritage was beneficial, FAA added.
Petra Caruana Dingli, columnist and former environment director at Mepa, welcomed green initiatives in the Budget but warned people may be missing the wood for the trees.
“Let’s not lose sight of the wider picture. The government is incentivising pro-environmental be-haviour with one hand while dismantling major environmental and heritage safeguards with the other,” she said.
Dr Caruana Dingli added that environmental organisations and experts agreed the split between the environmental and planning functions of Mepa into two separate authorities was weakening environmental and heritage regulation overall.
“The budget includes some positive financial incentives, related to old buildings, PV panels, bicycles, electric cars, food waste, scrapping old cars, and so on. Some are new; others are continuations of existing initiatives.
“To me, the impact of these measures is overshadowed by the looming Mepa demerger,” Dr Caruana Dingli said.
caroline.muscat@timesofmalta.com