Issue link: https://maltatoday.uberflip.com/i/1305625
maltatoday | SUNDAY • 1 NOVEMBER 2020 BUDGET 2021 THE theme for this year's budget is "Strongly Moving Forward". While COVID-19 dealt a major blow to government finances, in- creased government spending will continue through next year to help ease the negative impact of the virus on household. The budget comes with a stimulus package of €100 million that includes €50 million in vouchers. Malta's debt-to-GDP ratio is projected at 58.1% of GDP through 2021, and will remain below 60% until 2023. The deficit is ex- pected to stand at 9.4% of GDP for this year, droopping to 5.9% in 2021. Due to the suspension of the EU's Stability and Growth Pact, Malta has plenty of legroom in terms of fiscal policy design and debt accumulation, allowing government to maintain the current tax regime for the coming years. Vouchers Finance Minister Edward Scicluna said government will be handing out €50 million worth of vouchers. The vouchers will be received by everyone aged 16 or over, and will be issued in January. A total of €100 in vouchers will be received by every individual. €60 will have to be spent at restaurants, while €40 on other ser- vices and goods. COLA The cost of living adjustment has been set at €1.75 per week. Pensioners however are getting a total of €5 a week, an additional €3.25. No new taxes or increases in excise and duty This is historically Malta's fourth consecutive budget which in- cludes no increase in personal income tax. VAT and excise taxes will also see no increase next year. In-work benefit Higher thresholds will result in 4,500 new families receiving this benefit. Property tax Tax reductions on the sale and purchase of properties an- nounced in mini-budget last summer will be extended to prom- ise 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. VAT exempt VAT exempt threshold will increase from €20,000 to €30,000. Single-use plastics Importation of single-use plastics will stop next year and retail sales will end in 2022.