Budget at a glance

COLA

The cost of living adjustment will be at €1.75 per week, granted to all workers, pensioners and those on social benefits. Students’ stipends to increase pro-rata.

Income tax cuts

Single declarations up to €9,100, joint declarations up to €12,700, and parent declarations up to €10,500 won’t be taxed.

Single declaration up to €19,5000 to benefit from an annual €90 tax cut; €105 tax cut for a parent with single declaration up to €21,200; €120 tax cut for €28,700 couple’s joint declaration;

Working married couple with single computation can save up to €180; Working married couple each earning up to €21,000 can save up to €210;

Minimum wage earners will not be taxed.

Extra duty carried out by police officers to be taxed separately at a 15% rate.

VAT cuts on sports

7% VAT on sports activities including gym memberships, fitness centres, football nurseries. Coaches and professional sportsmen to benefit from a 7.5% income tax rate.

In-work benefit

Earners with an income of €6,600 up to €15,000 to receive €1,200 for every child. Working couples earning between €10,000 and €20,000 to receive up to €1,000 per child. The same benefit will be given to second parent joining the workforce.

Families with one working person earning between €6,600 and €12,700 to receive up to €150 per child.

Pensions

12,000 pensioners on minimum pension to receive an increase of between €4.15 and €8.92 per week, the highest receivers being those aged over 75.

Married couples on minimum pension not affected by the measure to receive a weekly increase of €4.15 per week over and above COLA adjustment.

Additional €300 for elderly aged 75 and over.

Live-in carer

Government to subsidise the salary of a carer employed to take care of an elderly relative at home, currently on a waiting list. The subsidy will be equivalent to up to half of the minimum wage.

First-time buyers

First-time buyers to save up to €5,000 for their first home, backdated to 1 July 2015.

Withholding tax

15% withholding tax on residential rents extended to commercial properties.

Final withholding tax on property in urban conservation areas down to 5%.

Vacant properties

The litigation period of heirs caught in a dispute over the selling of inherited property to be reduced from 10 to 3 years. Therefore, if 51% of the heirs are in agreement, the property can be sold after 3 years.

Property registration tax

Registration tax on property bought in an urban conservation area to be halved (2.5%). Contracts must be finalised between 1 January 2016 and 31 December 2016.

Abandoned commercial property

Government to launch consultation on vacant commercial premises and what sanctions should be introduced.

Vehicle registration tax refund

Government to distribute VAT refund for cars registered during 2005.

Fuel prices

Petrol and diesel prices to decrease as from January 2016. Price of petrol to decrease by 3c while diesel to decrease by 4c. The reduction includes a hike in duty.

LPG prices to remain unchanged until April.

€0.50 environmental contribution

Tourists aged 18+ to pay €0.50c per day, capped at €5. This will also include Maltese citizens travelling to Gozo.

Cigarettes price hike

The price of a packet of cigarette will go up at an average of €0.30c.

Persons with disability and employment

The fine for employers who don’t  comply with legislation in connection with disabled persons will double, reaching €1,600.

Regularisation of irregular migrants’ work

A consultation process will be launched for the setting up of an Immigration Work Office. The system will be managed through a PPP and will regularise the employment of irregular migrants.

Stipends for mature students

Mature students in full-time courses at MCAST or University will receive a stipend.

One-tablet-per-child

Tablets to be launched in October 2016; teachers will meanwhile receive training and technical infrastructure will be strengthened.

Schools

St Paul’s Bay to get a new school while the Mariam Al Battol to receive financial support to construct a new floor. A new residential and community centre for the University of Malta; works for Gozo campus to start soon.

Childcare centres

Three new childcare centres will be opened on Haz-Zebbug, St Julian’s and Floriana.

Alternative energy incentives

Families can invest in ‘communal’ solar farm, allowing persons who can’t have their own PV panels on their roof.

Less bureaucracy, more financial assistance for start-ups

The bureaucratic procedure faced by start-ups wishing to open up in Malta will be reduced to a one-week average, down from the current three weeks. Malta Enterprise will launch fresh schemes to fund start-ups and companies that attempt to generate funds through crowdfunding.

Tax credits for businesses that employ doctorate holders

Businesses that employ people who hold or are reading for a doctorate in science, IT or engineering will be given a maximum €10,000 tax credit.

Financial assistance to SMEs in manufacturing sector

SMEs that rent out space from the  private sector for manufacturing purposes will be granted a maximum €10,000 in financial compensation over a two-year period.

Tax credits for female-controlled companies

Self-employed women and businesses in which women enjoy a majority equity will be granted a maximum €50,000 tax credit.

Decision on shop-opening hours

New laws regulating shop opening hours will be announced before the end of the year.

Identity Malta

A new system will be set up to improve the research of lands, contracts and other legal documents within the Lands Registry of Identity Malta. Software will be updated and more investment will be poured into the Single-Permit Front Office.

New PPPs – Education Malta, Property Malta, Malta Marittima

Three new public-private partnerships will be set up – Education Malta to promote Malta as an educational hub, Property Malta to promote Malta as an island of high-quality property, and Malta Marittima to coordinate government maritime policies.

‘Masterplan’ for Mriehel

A ‘masterplan’ will be announced to regenerate the Mriehel Industrial Esttate into a business hub.

€13 million on roadworks

Transport Malta will invest €13 million in roadworks, €3 million more than it invested in 2015. Works will commence on Vjal ixXarolla in Zurrieq and on Triq Patri Pelagju and Triq Anthony Aquilina in Haz-Zebbug. A tidal system pilot project will be introduced in a number of roads.

Public consultation on traffic

Transport Malta will launch a public consultation over potential solutions for Malta’s traffic problem.

Bicycle incentives

The government will reintroduce a scheme, whereby people who purchase bicycles or pedelecs will receive a grant of 15.25% on the purchase price of the bicycle. The maximum grant will be increased from €150 to €250.

Two new funds will be set up to encourage businesses to invest in bicycle racks, and to encourage local councils to promote the use of bicycles.

Low-emission vehicle incentives

The government will re-introduce a scheme to encourage people

to dispose of vehicles over ten years old and to purchase vehicles with lower emissions. People who scrap an old vehicle and purchase a new electric one will be eligible for a €7,000 grant, people who purchase an electric vehicle without scrapping an old one will be eligible for a €4,000 grant, and people who purchase an electric quadricycle will be eligible for a €2,000 grant.

Owners of hybrid vehicles with carbon dioxide emissions between 50 and 65g/km will be eligible for a €2,000 grant. Owners of plug-in hybrids with CO2 emissions between 1 and 50g/km will be eligible for a €3,000 grant.

Owners of vehicles with CO2 emissions lower than 100g/km will be entitled to a €900 grant, while owners of vehicles with CO2 emissions between 101 and 130g/km will be eligible for a €700 grant.

Hybrid and electric vehicles will be exempted from Valletta’s Controlled Vehicular Access parking scheme.

Businesses that purchase hybrid or electric vehicles will be entitled to a one-off tax return of 50% of the purchase price of the vehicle.

Cars that have clocked up over 160,000km will be obliged to undergo an annual Vehicle Roadworthiness Test.

Motorcycle licenses

License fees for small 125cc motorcycles will be slashed to €10 per years. Registration tax will be removed for electric motorcycles.

Road discipline

Higher fines will be dished out to drink-drivers and people caught using their mobile phones while driving.

New laws will clamp down on people with unregistered foreign cars.

Underground parking

The government will launch two PPP pilot projects to identify new parking zones, preferably underground, in Mosta and Wied ilGhajn.

Out-of-court mediation

The government will launch initiatives aimed at encouraging people to resolve their disputes through mediation, rather than through the Civil Courts.

American University of Malta

Construction work will commence on the ‘American University of Malta’ campuses at Zonqor and Cospicua.

Marsaxlokk regeneration

The government will launch a regeneration project for Marsaxlokk, that will initially focus on converting Triq Xatt is-Sajjieda into a pedestrian zone.

White certificates for energysaving hotels

A PPP will hand out white certificates to hotels that invest in sustainable energy, certificates that they will then be able to exchange for grants or other fiscal incentives.

Relocation of ITS to Smart City

€56 million will be invested in relocating the Institute of Tourism Studies to Smart City. An expression of interest will be issued for the regeneration of the tourism school’s current Pembroke premises.

A St George’s Bay Regeneration Cooperation will be set up to synergise private development works around the popular St. Julian’s bay.

Study on a Malta-Gozo tunnel

Technical and geological studies will be commissioned on the creation of a tunnel that will link Malta and Gozo. The proposal for a bridge linking the two islands has been scrapped, as a tunnel potentially financed by the private sector has been deemed more feasible.

Incentives for Gozitan businesses to hire workers

Every Gozitan business that hires an employee on a minimum threeyear contract will receive a refund of 20% of the average wage, capped at €5,000 per business.

Gozitan students’ allowance

The annual allowance for Gozitan students studying in Malta will increase by €300.

Tax incentives for donations to the arts

People who donate money to the arts will see their taxes slashed by 150% of the value of their donation.

Sports

The Hal-Kirkop sporting complex will be upgraded and the Cottonera Sports Complex will be extended.

The Marsa horse-racing track and Marsa sports complex will also be upgraded.                   

A White Paper will be launched aimed at finding means through which sports organisations can attract further investment in their facilities.

Sports facilities will be built at the Gudja Youth Village.

Waiting lists

A PPP will be set up to reduce waiting lists for people who require hip and knee replacements.

New hospital beds

A new block at Mater Dei will add 68 new beds to the national hospital.

Medicines at your doorstep

A pilot project will be launched that will see medicines delivered directly to people’s homes.

Paediatric emergency services

A specialised paediatric emergency service will be introduced for children.

Diabetes medicine

New medicines to treat diabetes will be added to the government’s formulary list.

MEPA split

MEPA will be split up into two separate authorities – one focused on the environment and the other focused on planning.

Food waste

Public consultation will be held over the possibility of designing

a new law that will regulate food waste.

Pitkali crates

Electronic identification chips will be installed on Pitkali crates

Leave after IVF treatment

Leave from work will be granted to couples, for a number of days after IVF treatment.

Disability hub

A new hub will be set up for people with a disability, so as to promote their inclusion and participation in communities. The hub will include private residences, a hostel, a respite centre, shops, a pool, a day centre, and an underground parking space.

Social housing

The Housing Authority will undertake maintenance and beautification programmes on social housing estates in Hamrun, Ta’ Giorni and Pembroke.

€50 million will be invested into the development of new social housing blocks.

Expropriation compensation

200 or so people each owed up to €50,000 in compensation for expropriated land will be paid in full.