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MaltaToday BUDGET SPECIAL 12 October 2021

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2 maltatoday | TUESDAY • 12 OCTOBER 2021 BUDGET2022 COLA Increase of €1.75 per week. Pensioners however are getting a total of €5 a week, an additional €3.25 €1.75 CHARGING POINTS PENSIONS 1,200 charging points will be installed around Malta. Government is increasing incentives offered for the purchase of electric and hybrid vehicles. 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. Lower tax for working pensioners Lower tax for pensioners to encourage them to continue working. Tax will be levied only on work income not pension and this will be introduced over a five-year span. Pensioners today are collectively paying €27 million in taxes. This tax burden will be reduced at 20% per year over a five-year span. Annual impact is €5 million per year. Pensioners with not enough NI Bonus for pensioners who have not accumulated enough NI will increase by €150. Widows' pension Widows' pension will be gradually adjusted and in 2022, 12,000 pensioners will benefit from an increase of up to €5, with a total expenditure of €3.3 million. 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. 0 BABY BONUS Baby allowance that is also paid to those who adopt a child, will increase by €100 to €400. Around 4,000 parents are expected to benefit and the increase will cost €500,000. CHILDREN WITH DISABILITIES Allowance for children with disability will increase by €5. 1,700 families will benefit for a total expense of €500,000. CARER ALLOWANCE Carer allowance for persons with a severe disability introduced for the first-time last year will increase by €300 to €500. Around 450 parents will benefit. VULNERABLE FAMILIES COLA mechanism for vulnerable families. PUBLIC TRANSPORT Free public transport for all next year in possession of Tal-Linja card (tourists excluded). IMWADAR PARK Afforestation of Inwadar Park. €20 million expense over a five-year span. ELECTRIC VEHICLES Assistance to buy electric and plug-in hybrid cars will increase by €3,000 from €8,000 to €11,000. This grant will increase to €12,000 if teh vehicle scrappage scheme is used when purchasing an electric vehicle. VEHICLE SCRAPPAGE SCHEME The financial grant in the case of scrapped vehicles will be raised by €1,000, to €3,000, in the case of scrapped vehicles registered in Gozo. IN-WORK BENEFIT FOR COUPLES Threshold for in-work benefit payments to couples where both work will increase from €35,000 to €50,000, while the threshold for couples where one of the spouses works will increase from €26,000 NO NEW TAXES OR INCREASES IN DUTIES AND EXCISE FREE PUBLIC TRANSPORT By October 2022, public transport will be free for all holders of a Tal-Linja card 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.

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