Chamber of Commerce: Budget acknowledges private sector’s role

The Chamber of Commerce said it noted the underlying priorities of the 2016 Budget Speech, namely fiscal consolidation, strong economic growth and better living standards for all.

It however noted a decline in capital expenditure for 2016 and that demands for energy tariff reduction were not taken up to the detriment of Malta’s general competitiveness position.

“All in all, however, this Budget continues to acknowledge the private sector’s important role in the economy. On its part, the Malta Chamber is committed to work towards supporting the growth of business, employment and prosperity in Malta.

“This year’s budget continues to build on last year’s endeavours in a number of other areas including income support for low and middle-income earners and pensioners, further investment in human resources, environmental initiatives and the real estate sector,” the Chamber said.

It said data for the Maltese economy was encouraging, but the country must not allow for any complacency and must at all costs ensure that there are no slippages in at least three areas: namely, public finances, revision of labour market policies, and PPPs.

The Chamber welcomed government’s commitment to address the country’s ease of doing business rankings, updating bankruptcy legislation, streamlining tendering procedures, and reducing the performance guarantees from 10 per cent to 4 per cent.

The Chamber said it fully supported the shifting of a number of products falling under this Eco-Contribution Act to the excise duty regime, but it said it was surprised that little or no consultation took place on this measure ahead of the Budget. “This, particularly in the light that this shift will surely affect the business operations of law abiding companies in the immediate term at a sensitive period of the year,” the Chamber said.

The Chamber was disappointed to note that that there were no measures to address the further lowering of energy tariffs for business, which was the Chamber’s prime recommendation prior to this year’s Budget.

“It is feared that this fact may support the further gradual erosion of Malta’s competitive position in cost-sensitive sectors relative to other regions and states.

“In terms of competitiveness, the Chamber is also disappointed to note that little or no mention was made to the proposals made by the Chamber in the field of Research, Technology, Development and Innovation (RTDI).”