4 maltatoday | TUESDAY • 20 OCTOBER 2020
BUDGET2021
In and out: the government's income and expenditure in 2021
€1,793,000,000
€1,087,000,000
€994,000,000
€599,002,000
€381,000,000
€344,000,000
DEFICIT
€756
million
In
€5.2
billion
Total revenue
Income tax
The projection is €164 million more than what government expects to collect by the
end of 2020 despite forgoing €16 million in tax refunds to all those earning less
than €60,000. This year's tax refunds will be higher than previous years, with
the maximum pay out increasing to €95 for those on the lower rungs.
Social security
National insurance contributions will yield €73 million more
in 2021 than the revised estimates for this year, a sign of
government's positive outlook that the economy will grow
and employ more people.
Customs and excise
For the fourth budget running, the government has not
increased excise taxes. However, increased economic activity
is still expected to yield an additional €32 million over end-
of-2020 estimates.
Licenses, taxes and fines
Reduced consumption on extraordinary expenses such as cars will
yield €11 million less from motor vehicle registration tax and €4 million
less in annual road licence fees.
VAT
The general VAT rate remains unchanged at 18%. The VAT exempt threshold
will increase to €30,000. Government is projecting an increase of €184 million
on the revised estimates for 2020, indicating that consumption will pick up.
Non-tax revenue
The bulk of this revenue is made up of EU grants to the tune of €263.5
million. Government is also estimating an income of €75 million from the
IIP, an increase of €25 million over 2020.
