Issue link: https://maltatoday.uberflip.com/i/1176480
maltatoday | TUESDAY • 15 OCTOBER 2019 11 BUDGET 2020 Issued by Bank of Valle a p.l.c., 58, Triq San Żakkarija, Il-Belt Valle a VLT 1130. Bank of Valle a p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta). REWARD YOURSELF AT THE POINT SHOPPING MALL Talk to us | 2131 2020 | bov.com BOV CARDS Earn points in the BOV Loyalty Rewards Programme every single me you use your BOV Premium Cards A number of housing schemes which were introduced during past budgets will carry on through into this budget. Namely, the schemes for a reduc- tion in stamp duty for first-time and second-time buyers, the scheme for vacant properties in Urban Conser- vation Areas, the scheme for proper- ties in Gozo and the home restoration scheme will all be extended for an- other year. For the first-time buyers' scheme, the exemption of stamp duty has been increased from €150,000 to now cover the first €175,000 of any contract en- tered into under the scheme. This will translate to a €6,500 saving for first- time buyers, up from €5,000. Moreover, stamp duty will be fur- ther decreased for anyone who buys a property to live in, even if they are not first-time buyers, and for those who live in a property which they didn't own and which they inherited. The amount on which a lower tax rate of 3.5% will be charged has in-creased to €175,000. Government loan Property buyers aged under 40 will be able to borrow from the govern- ment the 10% deposit amount which they need to pay on a property, up to a maximum of €17,500. This has to be paid back, interest free, over the course of 15 years. The scheme will be provided through an arrangement between the government a one or more banks, with the government paying any in- terest due itself. Increase in income cap on housing benefit The government subsidy for low-in- come earners to rent private dwellings - which was utilised by 1,000 families since coming into effect this year - will be extended, and the income cap for those eligible raised. From January, the maximum annual salary a single person can earn in or- der to benefit from the scheme will be raised from €14,500 to €19,000. The cap for couples with two children will be raised from a joint annual income of €28,600 to €32,000. The subsidy is available to those whose rent costs exceed 25% of their gross income. 1,700 additional social housing units The government will be building 1,700 new social housing units, over- and-above the 700 other units which are already being developed. This will require an additional in- vestment of €60 million. The Housing Authority will con- tinue its maintenance programme of an extra 50 blocks of social housing in different localities. The government will also continue with its regeneration of dilapidated state property which will be convert- ed to social housing. Elderly residence-sharing The Housing Authority will extend its scheme of carrying out works on two or three-bedroom apartments to enable two or three elderly persons to live together in the same dwelling. The government will also be launch- ing a pilot project for intergeneration- al living, which will see family mem- bers of different ages living together, with the goal of creating a community which better understands the needs of those within it. Building and Construction Authority in the pipeline Work is ongoing to set up a new Building and Construction Author- ity with the aim of regulating the sec- tor and introducing a Building Code which brings under one umbrella various laws. Incentives for local councils to enter into sustainable projects to improve residents' lives will continue. 15% tax on the sale of airspace From 1 January 2020, a 15% with- holding tax will be introduced on the sale of airspace, the profit or gains of which does not exceed %100,000. The tax has to be collected by the notary in the same way as the tax on property transfers. Any profit over and above €100,000 will still be taxed at 35%. Online lands register Following the establishment of a Lands Registration Agency, a new on- line system is being set up to facilitate the registration of property. Next year, investment will be made in new equipment which will make the process of transfer-ring property easier. In the future, all lands in the Maltese islands will be included in a register. THE government has reaffirmed its deter- mination to deliver a tunnel connecting Malta and Gozo, with studies on the project yet to achieve fruition. Amongst these studies are the preliminary designs for the underwater tunnel, as well as impact studies for the environment, eco- nomic and social aspects of the project. No price tags have so far been published for the cost of the tunnel. In December, a pre-information notice was issued in the Official EU Journal, and a pre-qualification questionnaire which in- cludes technical information necessary for investors to guarantee, will be published. Finance minister Edward Scicluna also hailed the leasing of a fourth ferry for Gozo as a suc-cess which had eliminated waiting times and queues. "The Gozo Channel has learnt from this experience and is now in a position to invest in the fourth ferry, which however must be preceded by the moderni- zation of its electronic ticketing. Works on the fast ferry service will also continue." A back-office operation for the Inland Revenue Department is to be extended as part of a bid to offer more employment op- portunities in Gozo. These are added to the creation of new of- fices for the financial services and consum- er af-fairs regulators in Gozo, apart from the Gozo Employment Scheme to attract more private companies to open offices on the sister island. The government will be introducing fiscal incentives on transloca- tion expenses for companies moving their operations to Gozo, as well for companies offering teleworking and back-office facili- ties from Gozo. Scicluna also said that the coming months will see the inauguration of the Research and Innovation Hub in Xewkija, as well as the Barts Medical School at the Gozo Gen- eral Hospi-tal., and the small business hub in the Hofra zone. Other ongoing prokects include the €11 million restoration of the Water Services Corpora-tion's reverse osmosis facility at Hondoq ir-Rummien, that will produce over 9 million litres of purified water daily, and reduce Gozo's dependence on the sub- marine pipeline from the Cirkewwa plant. GOZO TUNNEL HOUSING Pre-qualification questionnaire to be issued to investors Interest-free loan up to €17,000 for deposits on home purchases