Another set of €100 vouchers will be sent to Maltese residents aged +16 years during the year 2021, to be spent locally to the extent of 60% on accommodation and restaurants and 40% in retail outlets.
Persons born before 1962, who did not qualify for state pension due to contributions effected prior to the age of 19 years, will now have such contributions considered for pension purposes.
Reduced income tax and duty rates on the inter-vivos transfer of immovable property in Malta of 5% and 1.5% respectively for the first €400k will continue on promises of sale agreements registered by 31 March 2021.
VAT exempt threshold to increase from €20k to €30k.
Tourism regeneration strategy to be announced in coming weeks aiming to re-build the tourism industry following the effects of the COVID19 pandemic.
Low Carbon Development Strategy to be finalised by end of 2020.
A reduction of 35% on the annual licence fee of vehicles to be registered for use only during weekends and public holidays.
A tax exemption on the profits of compliant voluntary organisations with annual income of not more than €50k.
Following four consecutive years of surplus, a deficit amounting to 9.4% of the GDP is expected for 2020 as a result of the impact of Covid 19 on Government revenue’s and increased expenditure to fund the various support measures. Measures which have helped Malta maintain the unemployment rate at around 4.1% (August). During the first half of the year, GDP decreased by 7.7%, compared to that of the Eurozone rate of 9% and public debt is expected to increase to 55% of GDP. Real GDP is expected to fall by 7.4% in 2020 and recover by 5% in 2021. Inflation during September stood at 0.18% and is expected to be of 1.3% for 2021.
Hereunder are selected highlights of the budget speech: