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MALTATODAY 23 October 2018 Budget

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maltatoday | TUESDAY • 23 OCTOBER 2018 3 BUDGET 2019 MISCELLANEOUS Facial recognition CCTV roll-out in Paceville and Marsa for 'anti- social behaviour' hotspots. 13 pitches and parks in some 15 localities that were built some years ago by the MFA and which were administered by local councils who couldn't afford to repair them. Government will be fixing them itself. Female quotas in parliament: 2019 will see a Green Paper on quotas in parliament, with a proposal for a co-option mechanism for women in parliament. NGOs with an income of less than €10,000 annual will be tax-exempt. VAT refund on wedding expenses extended to €2,000. New entity to promote digital economy and disruptive technologies. Plan to enter eSports market by developing a cluster for eSport developers and eSports events. A new unit will be set up that will monitor all government concessions, past, present and future, in order to ensure that all obligations are being met. EXTENSION OF FREE BUS TRANSPORT TO THOSE AGED 14- 15 AND DISABLED Free public transport for 16-20 year-olds will be extended to 14 and 15-year-olds, as well as those over 20 who are studying full-time. Free buses for people with a disability. SCHOOLS AND EDUCATION Last year it was a policy objective that people with a disability and who genuinely can't work would have their benefits increased slowly to match the minimum wage. Clear cases of people who can't participate in the labour market last year got €140 a week. This year they will get €150 a week. Government was also criticised because it was only taking physical disabilities into consideration so government is now changing this to include non-physical disabilities. 600 more people will be qualifying for this benefit. Parents of children in private schools, who have already been given some relief through the free school transport scheme, will have a tax rebate increased by €300 per child. Parents of kindergarten students will get €1,600 per child, parents of primary school children will get €1,800 and secondary school parents will be €2,600, in a bid to cover more or less a recent increase in tuition fees owing to a salary increase for teachers. All students up until secondary school will have free access to all Heritage Malta sites for themselves and two adults. MATSEC exams to be free as of next year. Reduction of VAT rate to 5% on e-books and musical instruments purchased from Malta or from abroad. Work will also start on a national sports strategy with meetings with sports federations to take place. DISABILITY An allowance for disabled children will increase from €25 a week to €30 a week. After an increase in allowance for live-in carers who take care of their elderly parents, in 2019 there will be two new reforms: a) removal of a means test. The idea is to remove pressure from old people's homes b) if carers apply for this allowance for elderly persons over the age 85 there will be no medical test on the patients. There will be an increase in tax exemption to €2,000 for third pillar pensions. ENVIRONMENT One new tree planted for every new car imported. VAT refund for people who install reverse osmosis machines in order to reduce the use of plastic. The tender for bottle caps return scheme will be scrapped because bottlers have joined forces and they will be given the concession themselves. ROADS AND URBAN INFRASTRUCTURE €100 million for roads. A call for public private partnerships for landowners who want to release plots to be developed into undergound car parks, with landscaped gardens. Urban gardens in roads projects have also been identified as open spaces that will be turned into green zones. VAT refund on bikes and motorcycles will be retained. The mandatory registration of rental contracts is a policy objective of this year's Budget. Last year the government doubled the number of people qualifying for a rental subsidy and doubled the subsidy that was paid, upon registration of the rental contract. In reality, it did not leave an effect or affected a small segment of society. The problem to be targeted is mainly related to people who cannot buy property because they have been priced out of the real estate market. In some cases that were identified, men and women over 40 years of age have encountered problems accessing banking finance for a home loan. The problem affects people who are on permanent rental contracts, those whose salaries are not high enough to sustain loan repayments, or even those who have encountered a 'life- changing situation' that now prevents them from accessing banking finance, such as separated or divorced couples. These people don't qualify for subsidies that are usually granted for social cases or low-income earners. This housing programme will be aimed at particular people, such as couples who have separated and sold a house they bought together but which income will not give them enough to individually buy their own house. To be eligible applicants will have to be 45 years or older, and must be buying a primary residence. An agreement has already been signed with APS Bank which will allow the person to buy half the property through a mortgage, while government pays the other half together with interest. HOUSING At the end of 20 years, the person will have a right to buy the second half from the government at an agreed-upon price. If they can't afford it, they can rent it. At the end of the process, once they die or the property is inherited by their children, they can choose to buy it from the government. If they choose not to, government will buy the other half itself and use the property for social housing. OTHER INCENTIVES Government will be scrapping the means-testing on the rental subsidy, which will be replaced by benchmarks, the criteria of which will be explained in the coming months. The subsidy for single people will be increased from €1,600 to €3,600. Families with kids will see their subsidy increase from €2,000 to €5,000. Other incentives will be launched for landlords who agree on a tenancy agreement of five years at minimum, in agreement with a governmemnt authority, to fix a rental rate that is less than the market price, with an agreed rate of annual increments, in return for a cheaper capital gains tax for landlords should they wish to sell the property after it returns in their hands, possibly less than the lowest 8% tax rate. Another 1,200 units that have been described as dilapidated properties have been identified and will be used for social accommodation. Government will also be entering into a private social partnership with a number of NGOs for properties that have to be regenerated. Increase in travel reimbursement and allowances for patients who travel to Malta and accompanying people. €1.50 per week for Gozitan government employees that travel collectively through hired vans or car-pooling; private sector workers will be refunded on part of their ferry ticket. Housing subsidy for Gozitans in Malta, and entity to house students living in Maltese units. Continuation of 30% salary payback on three-year salaries for job-creators in Gozo. Gozo Tunnel – geological and seismic survey are ready and now works on design. A public consultation will be launched in the coming weeks. GOZO

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