Budget 2013 at a glance

FULL BUDGET DOCUMENTS in PDF - on GOOGLE DRIVE

Enterprise-friendly

• €42 million in schemes to support international competitiveness, innovation, e-Business, R&D, environment and start-ups. Allocation of 4th calls to 200 further businesses
• Extension of High Energy Users Scheme to Gozitan industry
• Strengthening of incentives to attract international film productions (rebate for production is increased from 20% to 23% and to 25% if Malta is featured as Malta)
• MicroInvest is extended for a further two years and businesses employing to 30 people are now eligible
• BSTART: a tax deduction scheme of up to €30,000 for seed capital investment

Investing in tourism

• MTA budget up to €37 million
• 40 million euro investment in Air Malta to support restructuring programme
• Start of works at Xemxija Bay
• Licenced hotels will benefit from Investment Aid on 15% of capital expenditure (in form of tax credits)
• Incentive schemes to increaseboutique hotels in Valletta (tax deductions on investments related to purchase and development of these sites and MEPA/MTA fees)
• Winter incentive for visiting Gozo - Maltese spending a night or more in Gozo will pay the same ferry fee as Gozitans
• Transformation of former Air Malta Head Office into a zone dedicated to the expansion of the aviation sector. This development will take place through PPP

Investing in education and sport

• Education budget is increased by €12 million to €390.7 million
• Continuation of Get Qualified scheme which provides a tax rebate for students paying to obtain their academic qualification
• Construction of new Secondary schools in Ħal Kirkop, Raħal Ġdid, Sta Venera 
and Pembroke
• New ITS campus.
• Further investment at University of Malta, including continuation of works on new IT centre
• 19 new football grounds will be developed in the coming months
• New Rugby facility following transfer of Government land to Rugby Association
• Increase in sport tourism funds

Increasing health services budget

• A further increase in health expenditure of €38 million, to a total of €465 million
• Extension of Pharmacy of Your Choice in order to cover remaining localities
• Roll out of IVF services for eligible couples
• Continuation of Oncology Centre works
• Increase in 6% on excise duty on cigarettes and 8% on tobacco

The social side of the budget

• €37 million increase in social benefits Expenditure reaching €787 million
• All social benefits will increase by the COLA amount
• Energy benefit: Gas price allowance to increase from €30 to €40
• Continuation of pension reform: contribution credits will be provided to parents born between 1.1.52 and 31.12.61 that quit their job to raise their children
• Credited contributions for every child, and in case of children with disability, parents will receive two years 'contributions should the parent had quit their job to raise their children and eventually returned to work
• More forms of disability will be eligible for this pension
• Two married people with a disability that got married before Jan 2007 will be entitled to same pension as those who got married after that date

The kids' budget

• Setting up of residential home to avoid separating siblings at cost of €300,000
• Establishment of therapeutic facility that offers security to children with behavioural problems (€400,000.)
• Support programme for youths exiting residential care in terms of provision of temporary or permanent residence and assistance in this transitional phase
• Opening of 2 Access offices in Gozo and Birkirkara, investment of €200,000

Helping the vulnerable

• Tax reduction for persons with a disability paying fees for residency services in respite centres. This benefit applies to parents if they are responsible of such payment. Max deduction of €2500
• Residence for persons with a disability with voluntary sector in Gozo
• Extension of work scheme with local councils to cover NGOs and other Government entities to create 150 more jobs for persons with a disability, 50 of which in Gozo

Property aid

• The present choice on paying capital gains tax or 12% final withholding tax is extended from 7 to 12 years as from 2013
• Couples or persons purchasing the first residential home taking out bank 
loans will be able to provide the bank architect property valuation
• In case of properties whose value exceeds €250,000, before signing of contracts the seller and buyer may request the department to send its architect to issue price valuation on which stamp duty is paid. This valuation remains valid for 6 months from date of issue.
• 3.5% stamp duty ceiling for first time buyers is increased from €116,468.67 to €150,000
• Individuals and companies that purchase properties outside UCAs for restoration purposes will benefit from a 2% deduction in stamp duty. A 20% tax credit of up to€200,000 related to restoration and development is also applicable
• First three hundred applicants will qualify for subsidised 2.5% interest rate on bank loan for First 8 years. These will receive up to €14,000 in subsidy

Training: targeting unemployed young persons

• Active scheme will focus on those young people who are on the unemployment register. Following provision of necessary training, these young people will be offered a work experience of 20 hours in a sector which best relates to their profile. A pro-rata benefit will apply
• Training and mentoring will be provided for unemployed young persons to explore entrepreneurship opportunities
• Increase apprentice stipend from €86 to €95
• Extension of minimum wage scheme, with an investment of €300,000 in favour of those earning up to 300 euro a week. These will receive €25 a week
• Job Bridge programme will provide specialised training to persons with a disability to strengthen their skill set to adapt to the job market

Facilitating female participation in the workforce

• Continuation of construction of 4 child care centres (Naxxar, San Gwann, Gżira and Żurrieq).
• Continuation of up to €1,300 tax deduction for parents sending their children to child care centres
• Women returning to work after 5 years or after having children will maintain one year tax free status
• Maternity leave reaches 18 weeks
• Children's allowance increases from €350 to €450, and to €527 for families dependent on a minimum wage

Reducing income tax for high-earners

• Income tax for those earning between €19,501 and €60,000 will decrease from 35% to 25% over three years, starting at 32% in 2013.

Sustaining energy and environment

• Continuation of negotiations with the EU for Budget 2014-2020 for financing of gas pipline
• €25 million support to Enemalta for 2013 to ensure tariff stability
• Introduction of feed-in tariffs for PV panels
• Finalisation of scheme in favour of families not able to invest in PV panels on their rooftops
• Extension of Solar Water Heater rebate (40% up to max. €400 )
• 15.25% rebate up to €1,000 on double glazing and roof insulation.
• Increase in excise duty on fuel consumption of 2c per litre on petrol and diesel and €5 per tonne on cement
• €56 million investment in underground tunnels part of flood relief project
• €250,000 in favour of animal sanctuary

Transport

• Euro 5 car registration tax is reduced by a maximum of 30%
• Euro 4 car registration tax is increased by an average of 10%
• €500 scrapping scheme for new private or commercial (N1) cars on scrapping of older vehicle
• Removal of registration tax on motorcycles with 250cc engine and 25% reduction on other engine capacities
• Removal of registration tax on classic cars aged 50 years and over
• Rebate scheme of €200 for conversion of cars to autogas

Friendly with the fishermen

• Provision of VAT exemption on diesel to fishermen
• Investment of €3 miljun on a new fish Market in Marsa
• €6 million over 3 years for investment in Marsaxlokk Port (construction of breakwater and restoration of existing breakwater)
• In the eventuality of a closed season for fisheries, Government will compensate financially for the closed season and by covering SSC contributions during this inactive period

The sister island gets:

• Development of Local Employment Development Unit in Gozo to strengthening work carried out by the ETC
• Scheme to support unemployed Gozitans
• Development of business centre for financial services and ICT companies.
• Development of Child Development Centre in Rabat to offer health and educational services to children with specific needs
• Further investment in Gozo General Hospital. Provision of chemotherapy, establishment of dementia unit, house for patients with mental problems and elderly night shelter
• Development of Local Employment Development Unit in Gozo to strengthening work carried out by the ETC
• Scheme to support unemployed Gozitans
• Development of business centre for financial services and ICT companies
• Development of Child Development Centre in Rabat to offer health and educational services to children with specific needs
• Further investment in Gozo General Hospital. Provision of chemotherapy, establishment of dementia unit, house for patients with mental problems and elderly night shelter

The elderly and pensions

• €300 allowance to those aged 78 and eventually to those aged 75 .
• Full COLA increase to the elderly
• Revision of Supplementary Assistance for those aged 65 in cases where household income is below the risk-of-poverty threshold
• Extension of social assistance to those not covered by this pension due means test as well as to those leaving the job market and qualifying for social assistance