Budget Highlights
Extension to the transfer of family business scheme which reduces duty from 5% to 1.5%
Tax Refunds – Cheques will continue to be received, amounts will range between €60 and €140
Increase in Tax rebate from €100 to €300 per year for parents who send their children to sports, artistic or cultural activities
€10,000 grant will be given to first-time buyers who acquire property with a value of less than €500,000
Pensions are to increase by €12.50 per week. This includes the COLA increase of €9.90 per week
Social Measures
COLA
- This year’s cost of living adjustment will be of €9.90 per week, amounting to €514.80 per annum.
- The COLA bonus will be paid in full to pensioners retiring after 2008.
- Vulnerable people will be receiving an additional COLA payment by December.
- Persons living on social assistance benefits are set to receive the COLA increase in full.
Education
- Four schools are to be renovated/completed by 2023.
- Completion of a sports complex in Santa Lucija.
- Re-introduced the distribution of fresh fruit and vegetables to children in primary and secondary schools.
- Students in Year 7 will receive a new laptop.
- Additional funds are to be allocated to principals of schools situated in lower-income areas.
Health
- New medicines are to be provided for free to eligible patients.
- Introduction of new services such as Oncology Clinics, GU Clinics and GP Appointment Clinics to be provided at health centres. A Diabetes Centre will also be introduced at the Qormi Health Centre.
- Free HPV vaccines for all males born from 2000 onwards.
- Malta to introduce chemotherapy pumps which patients may use at home.
- Extension of the ART Clinic to support parents wanting to have their second child.
- Coeliac patients will receive an increased benefit of €20 per month.
- A new CT scanner will be purchased for St. Vincent De Paul Residence.
- A new outreach clinic in Dar Padova in Ghajnsielem will be offered to Gozitan residents.
Other Social Measures
- Persons not working between the age of 18 and 30 years receiving mental health care will be credited two years’ worth of social security.
- The children’s allowance will be increased by €90 per child, which will affect more than 41,100 families.
- Parents who leave their employment to care for their disabled children will be receiving more than €4,500 per year split into four quarters during the year.
- Rent subsidies are set to be increased to:
- €500 per month for one-bedroom houses
- €600 per month for two-bedroom houses
- €700 per month for three-bedroom houses
- Community policing to go nationwide by 2023.
Fiscal Incentives
Fiscal Incentives
- The non-taxable pension income threshold has been increased to €14,968.
- To encourage pensioners to continue working after retirement age, 20% of the pension income will not be considered as income for tax purposes for this year. This will be increased to 40% in the following year.
- A €200 yearly tax credit will be granted to parents of children with disability.
- Royalty income derived by authors and co-authors will be reduced to 7.5%.
- Extension of the group deduction rules, with companies affected by COVID-19 having the possibility to transfer unabsorbed capital allowances to their group members.
- Tax residency schemes such as the Global Residence Program and the Malta Residence Program will be re-assessed.
- Increase in tax rebate from €100 to €300 per year for parents who send their children to sports, artistic or cultural activities.
- Tax refund cheques will continue to be received, ranging between €60 and €140.
- Extension to the transfer of the family business scheme which reduces duty from 5% to 1.5%.
- Qualifying Employees with basic pay of less than €20,000 per annum who work atypical hours shall continue to benefit from an annual in-work benefit of €150.
Pensions
Pensions
- Pensions are to increase by €12.50 per week. This includes the COLA increase of €9.90.
- Widows’ pensions will be increased by an additional amount of up to €3.54 per week.
- Service pensions are set to be increased by €200.
- Persons who do not qualify for pension income due to a lack of social security contributions will be in receipt of an additional €50 bonus per year. Individuals who have paid less than 5 years in social security contributions shall be entitled to a bonus of €450 per year. Individuals who have paid more than 5 years in social security contributions, but less than 10 years shall be entitled to a bonus of €550 per year.
Environmental
Environmental
- €50 million project to reduce air pollution around the Grand Harbour by enabling vessels to connect directly to the national grid.
- €60 million investment for Sustainable Urban Development Initiative for Gozo.
- €50 million in EU funds for new electric vehicles
- Grant for electric cars and motorcycles of €11,000, increasing to €12,000 where the scrappage scheme is also utilised to be extended from last year.
- The €11,000 grant for plug-in hybrids has been extended for those cars which had been ordered up until May 2022, which vehicles will arrive in Malta by 2023.
- Exemption from registration tax and annual license fees (for a period of 5 years from initial registration) for electric and plug-in hybrid vehicles to be extended during 2023.
- New agency to coordinate the allocation of €700 million worth of funds for environmental projects over the next 7 years. The agency will also be responsible for green urban reclamation.
- 1,200 more charging points for electrical and plug-in hybrid vehicles to be installed by 2023.
- Interest-free loans for businesses who adopt an electric fleet.
- €50 million investment in Organic Processing Plant during 2023.
- New gate fees as of January 2023 to reduce amount of rubbish ending up in waste dump and further encourage separation of waste.
- Skip Management Facility to be developed in coming years to reduce around 47,000 tonnes of bulky refuse which can instead be separated and processed to meet recycling targets.
- Persons who will be buying cars ‘Drive from Wheelchair’ will benefit from a subsidy of not more than 20% on the price of the car. Persons who will be purchasing a second-hand car would be able to benefit from a subsidy equivalent to 10% on the price of the car.
Immovable Property
Immovable Property
- A €10,000 grant will be given to first-time buyers who acquire property with a value of less than €500,000. Such grant will be applicable to acquisitions made on or after 1st January 2022.
- The scheme intended to help buyers pay for their mortgage deposit will be broadened to properties valued up to €225,000, up from €175,000.
- The measures relating to:
- Properties which have been built for over 20 years and have been vacant for more than 7 years; or
- Properties which are in an Urban Conservative Area (UCA); or
- Newly built traditional Maltese houses which benefit from the following:
- No capital gains tax and stamp duty implications on the first €750,000
- VAT refund of €54,000 on the first €300,000 on the restoration of such properties
- For a property located in Malta a grant of €15,000 is applicable, whilst if the property is in Gozo, the grant sets to increase to €30,000
- This scheme will be extended for the next two years.
- The reduced stamp duty rate applicable to first-time buyers, second-time buyers and individuals buying property in Gozo will be extended to a further year.
Start-ups & Businesses
Start-ups & Businesses
- Introduction to ‘Start in Malta’ a one-stop-shop aimed to encourage more start-ups setting base in our country and assist in the administrative services.
- Development of a new business incubation centre in Malta.
- Malta Enterprise to double the cash grants for all Maltese companies, self-employed and family businesses investing in digital and sustainable projects.
- A committee has been appointed aimed to facilitate loan applications with banks.
- Launch of a number of schemes to attract tourism in Gozo.
Other Measures
Other Measures
- Ongoing discussions with stakeholders to reduce traffic congestion.
- Introduction of new guidelines for companies to obtain ESG credentials.
- Consumer rights will be strengthened during the coming year by increasing the maximum amount available to €5,000.
- Malta to host Euro Pride 2023.
- Increase in time and number of physical education lessons at schools.
- Disciplined corps in service for 25 years given the opportunity to improve their pension by 23% after a further 4 years in service.
Malta Budget 2023 – Post Budget Discussion
- Date: Wednesday, 26 October 2022
- Time: 09:00 – 10:00 CET
- Format: free online webinar
- Speakers: Matthew Zampa, Mark Wirth, Markita Falzon