On Monday evening, the Government unveiled the budget for the coming year. Among the most pertinent budgetary measures, the Government highlighted the extension of energy subsidies. This also follows the Cost of Living Adjustment (COLA), which will be €12.81 per week, possible slight increase in the corporate tax structure, electric vehicle grants extension and the possibility of a specialised Commercial court.

But how will this affect businesses?

Industry:

• Obligations on small businesses to submit audited financial statements will be eased.

• Minimum of 15 per cent corporate tax rate, delayed.

• €40 million allocated to the Business Enhance funding scheme and €16.5 million INVEST EU scheme allocated for small and medium enterprises.

• The Skills Development scheme will be extended.

• A new centre of excellence in the field of semiconductors. 

• 30,000 meter square land reclamation at Malta Freeport. 

Energy:

• Energy subsidies to continue, as announced earlier.

• Works are underway for a second interconnector.

• Increased investment in energy distribution networks. 

• Shore-to-shop project at Malta Freeport is in the works to allow docked vessels to plug into shore power.

• A plan to develop a hydrogen energy strategy is expected.

Transport:

• A new tender will be issued in order to develop a national network of cycling routes, by the end of 2024.

• The Government will make plans to pause certain services during the morning, where traffic is at its peak.

• The electric vehicle grant will be extended in 2024 in addition to financial assistance for first-time buyers of ekick scooters. On the other hand, the Government extended the grants for electric vehicle buyers.

• The Government will initiate plans to further increase 1,200 charging points for electric vehicles around Malta and Gozo.

• It announced plans through public-private partnership, to develop more parking areas.

Employees:

• As per previous years, a tax refund cheque, ranging from €60 to €140, will be issued according to income. The total expenditure for this measure is that of €26 million.

• Minimum wage is set to increase to €213.54 weekly, with plans announced prior to the budget of gradual increase over the years.

• In addition to the Cost of Living Adjustment, shouldered by the employers, the Government will issue ‘COLA Plus’ payments ranging from €100 to €1,500 per household, to 95,000 “vulnerable households.”

• Unemployment benefits will be adjusted to 60 per cent of previous salary, with plans of eventually dropping to 50 per cent.

Property and Gozo:

• The Government will increase the scheme for first-time buyers buying UCA property in Gozo by €10,000. Therefore, increasing the grant from €30,000 to €40,000.

• On the other hand, there will be the removal of a tax incentive for property purchases in Gozo outside UCA areas, with stamp duty increasing back to five per cent.

• First-time buyers’ scheme will remain in place; however, allocation will grow to €5.2 million from €3 million.

• The schemes in which first and second time buyers pay lower rates of duty will remain in place. First-time buyer grant of €1,000 per year for up to 10 years will also be extended.

• Capital gains and stamp duty exemptions for restorations of properties which are vacant will also be extended.

• Irregularity on VAT refund scheme for individuals buying or fixing properties will be addressed so couples and single buyers will receive equal refunds.

• €58 million EU funds allocated for sustainable urban development in Gozo.

Tourism:

• €215 million recapitalisation for newly established Air Malta.

Environment:

• Schemes intended for homeowners to invest in PV panels, solar water heaters, well restoration and water filtering systems will be extended.