The Malta Chamber of SMEs, in reaction to Monday night’s budget announcement, said it was pleased to see a number of the organisation’s own Budget proposals taken up, and welcomes the extension of the most important COVID Support measures. 

“The SME Chamber welcomes the extension of the wage supplement, as proposed, till end of March. It is apparent also that a fairer system will be adopted that ensures that all enterprises requiring help will be receiving this assistance.

“A positive development will also be the possibility to integrate new employees on this assistance, something that was causing great practical difficulties to business owners,” the SME Chamber said.

It described the fresh round of Government vouchers to be used at accommodation, restaurants, shops and retail services as “another positive”. 

In the second round of vouchers, €60 may be spent at accommodation and restaurants, and €40 at shops and retail services. Previously, the split was €80 for the former, and €20 for the latter.

“The Malta Chamber of SMEs appreciates the fairer distribution of the allocation of the vouchers between sectors, which is another proposal that came from the SME Chamber and was taken up.

“This measure will be essential to re-energise consumption with immediate effect to guarantee the best outcome for the fast approaching most important business period for many sectors.”

In line with the SME Chambers’ proposals, Budget 2021 also incentivises investments to help businesses in their digital and sustainable transformations.

“Businesses are being directed to re-engineer their business models and invest heavily in digital tools.”

The SME Chamber has called for strong incentives in this sense, given the delicate condition many enterprises are in at the moment. 

It lamented that tax incentives and the lowering of VAT rates would have boosted businesses’ ability to invest, adding that this is a step taken by many other EU countries but is absent from Malta’s 2021 Budget.

On the other hand, the SME Chamber positively noted the widening of the bracket for VAT threshold exempt for businesses and small operators, from €20,000 to €30,000.

The SME Chamber said that another necessary pillar for investment is the banks.

The Malta Chamber of SMEs commented that the banks are still not delivering in being the protagonists they should, in the current situation. 

“The banks must pull up their sleeves and see how they can ensure business survival and be catalysts for investment. All too often business owners are reporting failures in terms of banking support for SMEs.”

The SME Chamber remarked that overall, the Budget aims to instil confidence in maltese businesses, and aims to sustain Malta’s economy during these exceptional times.