Issue link: https://maltatoday.uberflip.com/i/1300699
16 maltatoday | TUESDAY • 20 OCTOBER 2020 BUDGET2021 GWU: Budget gives security, stability and peace of mind Economic prudence and fiscal disci- pline over the past few years has ena- bled government to present a budget with no tax increases, the GWU said. It welcomed the extension of the COVID wage supplement, the increase in the in-work benefit and measures to help the most vulnerable, including pensioners and the disabled. The GWU also welcomed the com- pensation for former drydocks workers who got sick as a result of asbestos. MDA: Proposals 'a step forward' The Malta Developers Association has been welcoming of the budget propos- als. They praised the decision to extend the First Time Buyers scheme as well as the introduction of lower taxes for property buyers and sellers. They noted that initiatives towards higher invest- ment in sustatinable machinery and other incentives favouring the green economy as a "step forward in tune with the MDA's overall vision." "The announcements are a step for- ward so that the property market and other important sectors such as the re- newable energy section, all represented by the MDA, continue to contribute towards the sustainable development of the Maltese economy at large while giving a much needed input towards a rapid boost and increased confidence in the current difficult economic scenar- io," MDA said. FORUM: No new burdens on workers Forum Unions Maltin commended the government for not only recognizing the difficulties brought on by the pan- demic, but also for not imposing any new burdens on workers. They praised the government for building on existing initiatives, includ- ing the extension of the wage supple- ment and vouchers schemes. Among the proposals is an extra day of leave for when holidays fall on weekends, an ini- tiative originally proposed by For.U.M. However, the forum expressed their disappointment over the failure to fulfil an election promise to allow parents to utilise their sick leave when their chil- dren are ill. Malta Union of Teachers: Limited budget on education Acknowledging the less-than-normal circumstances brought on by 2020, MUT says that the government should go beyond restrictions and instead give direction to sectors and adequate re- sources to educators so that they can carry out their work. "Since the budget was limited with regards to education, the MUT will look at the detailed esti- mates and discussions from the Min- istry for Education and Employment in order to better understand what's planned," they said. MUT also urged the government to think in the long-term when addressing serious problems in education, making particular reference to the shortage of educators during the pandemic. The union further noted that one of the few services linked to literacy was stopped due to the circumstances. "The MUT hopes that next year this service, along with other services, will not get back on their feet but will be strength- ened so that educators can continue to offer these invaluable services," they said. Malta Employers Association: Wel- comes stimulus, cautious on growth projection MEA has expressed cautiou on the 5% growth projection for next year due to uncertainty on the duration of the pan- demic and the Moneyval verdict. The MEA described the budget as "a sprinkling of benefits and fiscal incen- tives targeting various sectors of soci- ety", aimed at "stimulating local de- mand." It has also welcomed the "effective" increase in pensions, the increase in VAT exempt thresholds from €20,000 to €30,000 for businesses and a renewed voucher scheme. However, the MEA shot down the increase in optional leave, which it de- scribed as a "frivolous measure" which will erode competitiveness. Malta Chamber of SMEs: Thumbs up for wage supplement but no VAT cut The Malta Chamber for SMEs ex- pressed a positive verdict on the ex- tension of wage supplements and other incentives introduced during the pan- demic. But the chamber expected more tax incentives to be included in the budget including a decrease in VAT rates, which would have served to boost new investments. MHRA: Budget that helps tourism industry survive The Malta Hotels and Restaurants As- sociation (MHRA) said government de- livered a budget which averts the worst effects in the near future being caused by the pandemic. MHRA expressed confidence that measures will be taken to speed up the recovery as soon as the pandemic subsides. The association welcomed the exten- sion of the wage subsidy to employees working across the travel, tourism, and hospitality sector till March 2021. "This is a key measure which in the circum- stances is being considered as a vital lifeline by MHRA members," the asso- ciation said. The association said the extension of the vouchers scheme was important to sustain the operations of hotels, restau- rants and other economic sectors. It also welcomed the various initia- tives aimed at improving the environ- ment and quality of life of all citizens, and the emphasis on green develop- ments and schemes to mitigate the ef- fect of climate change. The MHRA noted efforts to look at the future by setting "strong founda- tions for matters related to the creation of new economic sectors such as Es- ports", and support to boost the confer- ence and incentive business segment. MHRA commended the increase in the allocation of funds for the Malta Tour- ism Authority. It described the budget as ambitious and in the right direction. "The budget is allowing for enough space and ability to craft further action as may be neces- sary at the most appropriate time," the MHRA said. Reactions to budget speech Finance Minister Edward Scicluna