The proposed thresholds on commercial rents are to be removed under the draft rent reform law which is expected to be tabled in Parliament this week.

The new law will not impinge on existing commercial contracts.

Social Policy Minister John Dalli yesterday outlined a number of changes that have been made to the White Paper in the drawing up of the Bill on rent reform.

He was speaking after a meeting with the Malta Council for Economic and Social Development, where he updated the social partners on the outcome of the public consultation process.

One of the other major changes is a reduction in the withholding tax that would have to be paid if an owner decides to sell a property to a tenant who has been renting the property for five years.

Political party clubs, which were previously excluded from the reform, will now be included and will be liberalised from January 1, 2010. There will also be provisions for social clubs through a set of regulations, he said.

He said the government had taken on board most of the suggestions it had received. The White Paper was launched for consultation in June with the aim to gradually phase out Malta's pre-1995 rent laws, based on protecting the tenure of current residents, ensuring rents will be fair, and enabling landlords to eventually repossess their properties.

A full report on all the suggestions made and how they were dealt with will be tabled in Parliament, Mr Dalli said.

He hoped to close the second reading of the Bill by the Christmas recess so that it will proceed to the committee stage, where changes and amendments will be made next year.