The GWU has expressed disappointment that its Budget proposals were ignored by the government.

The union said the government did not heed its calls to reduce the energy tariffs, raise the minimum wage and bring in cost of living adjustments every six months, instead of every year.

It criticised the government for raising duty on fuel.

The union also criticised the rise in gas prices announced by Liquigas.

GRTU PLEASED

The GRTU said it welcomed the general strategy of the Budget, which was one of stability while encouraging growth.

It welcomed the assistance being given to families and said it was pleased that many of its proposals to help SMEs had been taken on board, including the extension to the MicroInvest scheme.

It also welcomed the reduction in the top rate of tax.

MHRA REACTION

Although positive from a national perspective, it was less so from a hotel investor perspective, the Malta Hotels and Restaurants said this evening.

In a reaction to the budget presented this evening, MHRA president Tony Zahra said the association was pleased to note a number of measures aimed at promoting tourism but more details were required.

He said that the MHRA’s request to the government to 'leave something in the hoteliers’ tills' had not been heeded.

“We have been asking government for a return to the five per cent VAT rate on accommodation and a drop in electricity rates by 4c a kilowatt.  These two measures would have been important for the hoteliers to be able to fund the much needed refurbishment and re-investment which needs to be done regularly.

“This is a lose – lose situation, something which should and could be avoided,” Mr Zahra said.

CHAMBER OF COMMERCE

The Malta Chamber of Commerce said it fully supports the underlining priorities behind the Budget, which are fiscal consolidation and job creation.

It said it is encouraged that the Budget did not create economic shocks through increases in tax and utility rates.

However, there were some missed opportunities.

The Chamber said it will continue to insist that the formula used for calculating the cost of living allowance (COLA) takes productivity into account, as had been agreed within the relevant Malta Council for Economic and Social Development (MCESD) working group last year.

It said it would also have liked to see the introduction of a voluntary scheme for businesses to choose between variable energy rates or opt to fix their tariffs for a number of months at a reasonable premium.

Furthermore, it would have liked to see its proposal accepted for the re-introduction of export-credit insurance within the limitations imposed by EU regulations.

The Chamber said that the announced reduction in income tax rates is in line with its consistent requests for reduced tax burdens.

UHM GENERALLY PLEASED

The UHM said it was generally pleased with the Budget, including the allocation of funds for a study for an active labour market policy