Issue link: https://maltatoday.uberflip.com/i/1176480
BUDGET 2020 maltatoday | TUESDAY • 15 OCTOBER 2019 2 The policy will ensure that private employers do not underpay workers brought in from temping agencies, to carry out the same jobs of others. The measure is also introduced as a way to fight cheap foreign labour. COLA COLA is €3.49 for all, including anyone on benefits, while students will still be paid their COLA pro-rata on their stipends. Pensioners however are getting a total of €7 a week, an additional €3.51 €3.49 EXTRA DAY LEAVE Workers get to enjoy a third day of leave as part of Labour's manifesto pledge to remove the 2005 law that removes public holidays when they fall on weekends - this makes it the third one of five public holidays removed from the calendar. TAX REFUND ACROSS THE BOARD EQUAL PAY FOR JOBS OF EQUAL VALUE IN PRIVATE SECTOR BONUS for milk and bread price increase A one-time payment intended at covering one-off increases in the prices of milk and bread TAX ON OVERTIME at 15% Overtime will be taxed at the rate of 15% instead of the regular income tax rates, with three conditions: 1. Will apply only to the first 100 hours over a year 2. Basic salary cannot exceed €20,000 3. Must not be in a management position 27 ROLL-OVER OF SECOND-TIME BUYER SCHEME Extension of the second-home buyer scheme. This means that home-owners who are selling off their first home, and buying a second property, will benefit up to €3,000 in exempted property tax. The acquisition will have to be carried out within two years of the sale of their first home. EXTENSION OF UCA SCHEME & 2% GOZO PROPERTY TAX The grants for restoration of UCA properties once again is extended, as is the reduced 2% property tax (down from 5%) on properties acquired in Gozo. Housing benefits for those who spend over 25% of their income on rent - up to 32,000 people are expected to benefit from this benefit PENSIONS AND MEDICAL ASSISTANCE BENEFIT NO NEW TAXES OR INCREASES IN DUTIES AND EXCISE Extension of the Equity Release Facility so that pensioners who are homeowners, can use the value of their property to finance their retirement expenses on a staggered, monthly basis; the property is later released to the paying company, for example, an elderly home operator, upon the death of the owner. EQUITY RELEASE FOR PENSIONERS €7.00 COLA for pensioners This will be the largest increase in 40 years, since 1980, for pensioners, and the fifth consecutive increase for pensioners €15 €35 Single- person households All other households Property buyers of less than 40 years of age will be able to obtain an interest-free loan from the State of up to €17,000, payable over 15 years, so that they can place a deposit for their bank mortgage. INTEREST-FREE LOAN UP TO €17,000 FOR PROPERTY DEPOSIT FIRST-TIME BUYER SCHEME CAP INCREASED Maximum benefit for first- time buyers has increased to a maximum of €6,500, with property values now increased from €150,000 to €175,000. A 15% withholding tax, capped at €100,000, on the sale or transfer of airspace, ie. unbuilt airspace on property. DISCIPLINED CORPS' PENSIONS Beneficiaries of disciplined corps' pensions who take early retirement, will be eligible for a recaculate pension on the day they reach pensionable age. CHILDREN'S ALLOWANCE Childrens' allowances for widows, whether unemployed or in work, will be raised to €10 a week - raised from €9 and €5 per worker, respectively. SUPPLEMENTARY BENEFITS FOR LOW-INCOME PENSIONERS Supplementary benefits for pensions on low income will increase by €50 to €150. OLD-AGE BENEFIT FOR 80+ Existing old-age benefit of €300 given to those aged 75 years and over, will be retained, but increased to €350 per annum for those aged 80 and over. This is historically Malta's third consecutive Budget which includes no increase in personal income tax, the fifth Budget to record a consecutive surplus, in 2019 at 1.4%, the fifth Budget to increase pensions, and the eighth Budget that lowers income tax. Also there will be no new duties, excise taxes, or the customary annual increase on cigarette prices. €350 Another Labour manifesto pledge, this will be the third tranche of a general tax cut for anyone earning up to €60,000: a cheque of anything between €40 to €68 will be paid out to taxpayers, who will be paid a higher cheque the lower their salary is. The tax cut will benefit some 200,000 taxpayers, costed at around €11.5 million The tax cut will also be paid out to those on minimum wage and those whose salaries do not reach the minimum tax threshold €40-€68 each 15% TAX ON SALE OF AIRSPACE