The Malta Developers Association (MDA) said today that the schemes announced by the government yesterday to exempt the payment of stamp duty on the transfer of shares between those who inherit property in Urban Conservation Areas or Grade 1 and 2 buildings will have 'a negligible and fictitious result'.
"The MDA has long been insisting that the problem of abandoned properties in UCAs should lead to a holistic plan that includes fiscal incentives for all those who rehabilitate abandoned and run down properties in these zones – even when the work done is an investment – as well as a change in MEPA's attitudes and policies so that this work can be carried out," the association said.
"Unfortunately, Government is acting piecemeal in this regard: instead of attacking the problem aggressively as it deserves, it is announcing fiscal incentives in small and limited doses which, when one considers the size of the problem, will have a negligible and fictitious result, and is not going to leave any positive, tangible effect."
The MDA said that developers who are prepared to invest their money and have the means to rehabilitate these buildings in UCAs, should benefit from these incentives.
"The MDA is always ready to discuss with the authorities how the problem of vacant properties in UCAs should be tackled in a way that will truly lead to a live environment in the cores of our towns and villages, which are practically abandoned," it said.
The association also argued that MEPA's policies for development in UCAs, these should be aimed at the preservation of what is really worth keeping with guidelines on the existing characteristics in streets or in the zones that should be respected.
"As a general rule, buildings without a damp-proof course and with layouts that cannot be adapted to contemporary needs should be altered and there should not be restrictions on the opening of garages in streets wider than 7.50 metres. At the same time, semi-basements should not be allowed and the building height should remain in line with the present predominant heights while normally building rehabilitation should not lead to an increase in the actual number of residents."
On the lowering of income tax on rents of places in these localities, the MDA said it has always maintained that, for a healthy rental market to be encouraged, a withholding tax system should be implemented on the income from rents of all property in Malta and Gozo and not as a specific incentive for buildings in UCAs.
"Even in this matter, the rental scheme announced is only a small dose with a negligible, fictitious effect," the association said.