Issue link: https://maltatoday.uberflip.com/i/1300699
2 maltatoday | TUESDAY • 20 OCTOBER 2020 BUDGET2021 COLA Increase of €1.75 per week. Pensioners however are getting a total of €5 a week, an additional €3.25 €1.75 EXTRA DAY LEAVE Workers get to enjoy a fourth day of leave as part of Labour's manifesto pledge to remove the 2005 law that removes public holidays when they fall on weekends. Workers will therefore have 28 days of leave a year. TAX REFUND ACROSS THE BOARD VOUCHERS PENSIONS Government will hand out €50 million worth of vouchers. Each person aged 16 and over will receive €100 in vouchers. €60 will have to be spent on restaurants and €40 on other services and goods. Pensioners will receive an increase of €3.25 per week in addition to the Cost Of Living Adjustment. This means pensions will increase by €5 per week. Tax adjustments for pensioners There will be an adjustment in the income tax brackets for pensioners with married computation to ensure more tax savings. No pension bonus The bonus for elderly people who have no pension and had at some point in their life paid some NI will increase by €50. Accredited contributions Women born before 1962 who worked at the ages of 16, 17, 18 will have NI payments for those years accredited to their names. Service pensioners Similar to previous years, the portion of any service pension which is not to be reduced from the retirement pension is being increased by a further €200. 28 0 IN-WORK BENEFIT Higher thresholds will result in 4,500 new families receiving this benefit. FOSTER CARE ALLOWANCE This will increase by €520 per year. ADOPTION FROM MALTA Couples who adopt from Malta will receive €1,000. SUPPLEMENTARY ASSISTANCE This will increase by between €70 and €108. AT-RISK-OF-POVERTY BENEFIT This existing benefit of €150 per year for those at-risk-of-poverty will also be given to those on supplementary assistance. This will benefit 29,000 people. HOME CARERS ASSISTANCE Government's assistance of €5,291 to part finance the wage of a home carer for elderly people will increase to €6,000 and the eligibility criteria will now also include people with disability. ASBESTOS COMPENSATION Shipyard workers or their heirs who got sick or died because of asbestos will be compensated. PAST INJUSTICES COMPENSATION 5,500 people from various entities will receive compensation for past injustices. This year's allocation is €9 million. NEW DISABILITY BENEFIT Parents who stop from work because of children with a disability and are currently entitled to a disability allowance will receive an additional benefit of €300 per year. BONDS 62+ Government will once again issue a tranche of bonds targeted towards those aged 62 and over to mitigate banks' low-interest environment. PRIVATE PENSIONS FISCAL BENEFIT The fiscal benefit for those who hold a private pension will increase by €1,000 to reach €3,000. PROPERTY TAX Tax reductions on the sale and purchase of properties announced in mini- budget last summer will be extended to promise of sale agreements signed until the end of March 2021, with a final contract due by end December 2021. FIRST TIME BUYERS The tax-free portion for first time property buyers will increase to €200,000 from €175,000. PROPERTY BY INHERITANCE Tax-free amount on property bequeathed to children by their parents will increase to €250,000 from €200,000. HOUSING AUTHORITY SCHEMES The Housing Authority will continue several schemes including the equity sharing and equity release schemes. FREE BUS TRAVEL The age for elderly people who can travel free on buses will be reduced to 70 from 75. BOOK ROYALTIES Royalties on the sale of books will be taxed at flat 15%. EU FUNDS EU COVID cash grant of €120 million will start coming Malta's way and this will be used to finance the wage supplement. Malta will also benefit from the EU's recovery programme to the tune of €220 million that will be project-based funds. NO NEW TAXES OR INCREASES IN DUTIES AND EXCISE €70 CHILDREN'S ALLOWANCE Means tested Children's Allowance will increase by €70 per child. Flat rate Children's Allowance will increase by €50 per child to reach €500 per year. This is historically Malta's fourth consecutive budget which includes no increase in personal income tax. VAT and excise taxes will also see no increase next year. The government's pledge to refund some tax to those earning under €60,000 will be maintained and increased. Highest refund will amount to €95 and lowest refund will be €45. Total expense will be €16 million. €45-€95 each