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Budget 2024 Highlights

€320 million will be allocated by the government to keep stable the prices of energy and cereals throughout 2024.

 

BUSINESSES

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  • Obligations to submit audited accounts for tax purposes will be lightened for small businesses.

  • Malta to become centre of competence for semiconductors. Also Malta is working on new financial niches such as wealth and asset management, Real Estate Investment Trusts (REITs) and aircraft leasing.

  • Outsourcing and temping agencies to be regulated.

  • EU funded schemes for SMEs will be available. Namely €40m for business
    enchance scheme and €15m for Invest EU scheme. Other schemes falling
    under Malta Enterprise to be extended.

  • Corporate tax rules will not change for now.

  • Next year the Government will continue to offer cash opportunities with an investment of around €40 million for small and medium enterprises under the Business Enhance schemes. In addition, Malta will also be participating in the InvestEU initiative with other opportunities for enterprises.

  • Extension of reduced stamp duty rate of 1.5% for family business transferred to next generation.

 

 

EMPLOYMENT

  • Cost of living allowance for 2023 shall be of €12.81 per week. The increase
    will be given to all employees from 1st January 2024.

  • An additional COLA supplement varying from €100 to €1,500 to be given based on the household income.

  • In-work benefit to increase by €50 per child under 23 years old.

  • Minimum wage as from 1st January 2024 would be €213.54 per week.

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PERSONAL TAX

  • Tax refund cheques for workers earning up to €59,999 will range from
    €60 to €140.

  • 7.5% reduced tax for athletes and their coaches will be extended to more people in the sports sector.

  • Pensioners who continue to work will have 60% of their working income untaxed.

 

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PROPERTY RELATED MEASURES

  • Schemes for first, second-time buyers will be extended. Reduced stamp
    duty rates to buy property in Gozo will be abolished for agreements after 31December 2023, except for properties in UCA areas or vacant. Grant to buy UCA property in Gozo to increase to €40,000.

  • First residence Scheme covering vat refund on buying or fixing property
    will be updated for single persons to receive the same amount as couples.

  • Benefits to social housing beneficiaries to increase. Also a tax exemption to be given to landlords selling property to social housing beneficiaries.

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FAMILY MEASURES

  • Pensioners will be given a COLA allowance of €15 weekly, i.e. €780 per
    year. Tax ceiling for pensions will be increased so pensions are not taxed.

  • Financial incentives for workers you continue to work after reaching
    pension age. 6.5% top-up if you work for an extra year and 29% if you work for 4 more years.

  • Parents shall be given a grant of €500 when having a baby or adopting and further €1,000 in case of having the second.

  • Carer at home allowance to rise to €8,000 per year.

  • Children allowance will increase by €250 per child each year.

  • €487 increase per year to parents who quit their job to take care of a disabled child. Severe Disability benefit will increase by €12.81 per week and standard disability benefit to increase by €8.54 a week.

  • Government to fully endorse private pensions (third pillars). Government
    to discuss with social partners next year.

  • Families shall be given an additional allowance of €500 yearly for 3 years
    provided that children live at home and stay in school after the mandatory age of 16.

  • Bonus for those that don’t have enough contributions to get a pension. €500 for those with up to 4 years paid contributions and €600 for those who paid up to 9 years contributions.

  • Unemployment benefits to be apped at 175% of the minimum wage.

Image by Remi Yuan

​GREEN MEASURES

  • Malta’s second interconnector is underway, explore offshore
    windfarms, and large battery storages.

  • Government to developed hydrogen energy strategy, including
    encouraging diesel-operated large industrial processes that
    can’t go electric to switch to hydrogen.

  • Plans to reduce traffic during rush hours, including certain
    services to be paused at least until 9am. Also build more
    parking lot through private-public partnerships as a measure to
    alleviate traffic.

  • Schemes for people to invest in solar panels, heat pumps, solar
    water heaters, well restoration and water filtering systems.

  • Works being done to revamp or develop urban green spaces.

  • Tender to be issued by end of year for developing a network of
    cycling routes.

  • Incentives to buy electric cars, electric scooters to continue.

 

CAPITAL INVESTMENT

  • Gozo to benefit from €58m EU funding focused on urban
    development.

  • Government wants to increase fish farming and fishing.
    Subsidies to be issued for those employing a trainee and
    buying their first fishing vessel.

  • Investment in infrastructure projects such as Msida Creek
    and upgrading of Enemalta’s electricity infrastructure,
    enlarging reverse osmosis plants and building an incenerator.

  • Police to get a Road Policing unit which will be empowered
    to rapidly open roads following accidents.

  • Undersea dredging works underway at local ports to allow
    entry to larger ships.

  • LESA to invest in CCTV cameras to reduce crime in
    St. Julians, St. Paul’s Bay, Marsa and Paola.

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