The MDA is pleased to note that this year’s budget was a social one, where once again no taxes were increased. The incentives that were in place were renewed and, at the initiative of the MDA, the government’s tax revenue nonetheless increased whilst the people benefited by being able to effect healthy investments even in difficult times. Liquidity increases when austerity measures are not taken and a consequence of this us an increase in investments.
In this budget, the government recognised the importance of the development and construction industry by renewing the schemes related to the purchase of property, including those assisting first and second time buyers. These schemes which had been originally proposed by the MDA in a previous legislature, have benefited people who wanted to become homeowners to the extent that the Maltese economy experienced a significant and positive impact.
The MDA has been stressing for years that incentives should be provided for investors to consider abandoned properties and give them new life, restoring them whilst respecting Maltese tradition and culture. Thus, tax relief on the sale and purchase of vacant or traditional properties, or on those held within Urban Conservation Areas, as well as the grants for those who do so when buying their first homes, have also been highly appreciated. Furthermore, the tax incentives for the restoration and refining of these types of buildings; with a grant on the value of VAT of up to a maximum of € 54,000 on the first € 300,000 have also been very well received.
These incentives are geared to prompt the beautification of our localities and give veritable assistance to those who want to invest in the actual building.
Other positive steps were the incentives on the sale of properties which were rented out at affordable rates, and the creation of a foundation between the Church and the state. The MDA had stressed that the creation of a private public partnership in this sector would indeed bear fruit.
The MDA has welcomed the government’s incentives and proposals also in the field of renewable energy and in the renewing of the green economy. It however regrets to note that its proposals to motivate sales and purchases of properties with the highest standards pertaining to the environment and to shifting towards carbon neutrality did not find their way in this year’s budget.
The MDA is of the opinion that these proposals would help Malta meet its environmental targets in a timely manner and therefore urges the government to nonetheless seriously consider adopting them by introducing relative new measures during the year. The MDA proposals in this regard were geared to reduce the tax for the buyer, not for the developer; so as to instigate the scenario wherein high environmental standards will be sought for, and demanded, directly by the buyer.
“The MDA proposals … were geared to reduce the tax for the buyer, not for the developer; so as to instigate the scenario wherein high environmental standards will be sought for, and demanded, directly by the buyer”
The MDA is also pleased to welcome the overtime pay measure with a 15% reduction on the first € 10,000 earnings. This was a proposal made by the MDA this year because workers were preferring to work part-time with a third party rather than overtime with their employers, due to the high tax they were having to pay.
The MDA finally congratulates the government in its design of this budget, which could not have been easy to present in the aftermath of a pandemic that cost the country so many millions. It feels that this is a positive and widespread budget in its distribution that will leave money in the pockets of the people.
Comment