Issue link: https://maltatoday.uberflip.com/i/1508472
2 NEWS maltatoday | WEDNESDAY • 27 SEPTEMBER 2023 2 CONTINUED FROM PAGE 1 Enemalta and ARMS will carry out a validation ex- ercise before issuing the credit amount. Business compensation Businesses that experi- enced an interruption in the electricity supply will also be eligible for a one- time payment. Businesses with a com- mercial account will be entitled to a payment equivalent to one month's consumption calculated on the actual average con- sumption of that account in June, July and August 2022. This amount will in- crease gradually depend- ing on the number of hours impacted, and will be capped at a maximum of €10,000 per account. This scheme will be op- erated in collaboration with Malta Enterprise. Businesses that experi- enced an interruption in the power supply can apply online on electric- i t y p a y m e n t . m a l t a e n t e r - prise.com. Enemalta and ARMS will carry out a val- idation exercise here too. The application form for non-residential accounts will open on Friday, 29 September. In a statement, the ener- gy ministry said that it will be giving this payment ex gratia due to the unprec- edented heatwave that same week, which it says affected the electricity distribution system. A helpline has been set up and can be called on 80002024. Emails can also be sent to creditquery@ arms.com.mt. One-time payment will be issued after claims are verified July power cuts KURT SANSONE THE Chamber of Commerce is calling for a revision of tax bands to mitigate against wage erosion caused by higher infla- tion in its budget proposals. But it also warned that a €13 per week wage rise determined by the Cost Of Living Adjust- ment would cause labour costs to increase significantly and further fuel inflation. The Chamber said higher la- bour costs will lead to Malta's exports, including tourism and financial services, becoming less competitive. "With the persistently high inflation that we are experienc- ing, it is imperative to find ways of improving the purchasing power of lower income groups while minimising increases in labour costs to slow down the wage-inflation spiral," the Chamber said. The document published on Tuesday contains more than 250 proposals ahead of Budget 2024 that will be presented by the Finance Minister on 30 Oc- tober. In their introduction to the document, Chamber President Chris Vassallo Cesareo and CEO Marthese Portelli said the country must take "bold decisions even if they may be unpopular and challenging to implement". They highlighted structural problems in the labour market, transport, urban planning and waste management as issues that had to be tackled with "im- mediate urgency". They said the country had to address other fundamental strategic areas like the uptake of digitalisation and the transition to environmental sustainability. However, they also insisted that to achieve this Malta had to embrace good governance and ensure transparency and accountability. "For ethical businesses to keep investing, they need to be reas- sured that they are operating in a country that has an agile admin- istration that puts enforcement and integrity at the very top of everything it does," they said. Government should absorb COLA increase To mitigate against the negative impact of the COLA increase on competitiveness, the Chamber called on government to absorb part of the wage increase. It also called for a revision of the tax bands to compensate for the additional tax that will be paid on COLA increases. It said any planned tax refund cheques should be incorporated into the revisions to improve the monthly take-home pay of employed peo- ple. It also called for the correction of an anomaly in tax progres- sion that was introduced when tax bands were tapered with the introduction of the second 25% tax band with a lower subtracted amount in the tax. This anomaly, the Chamber said, had the effect of a very high marginal tax rate on pay rises that shift employees from the first to the second 25% tax bracket. Another proposal is to elim- inate the disincentive for the second spouse (often the fe- male) from taking up gainful employment by revising income tax categories such that working parents benefit from married tax rates irrespective of wheth- er their spouse is in gainful em- ployment or not. The Chamber said the exist- ing reduced tax rate on overtime hours for full-time employees should be extended to all over- time hours not just the first 100 hours. Public sector and pensions To reduce public sector expend- iture and improve efficiency the Chamber is proposing an inde- pendent audit of government job roles and responsibilities to identi- fy areas of duplication, streamline processes and eliminate unnec- essary bureaucratic layers to im- prove efficiency and reduce costs. It said any surplus personnel identified in the audit should be seconded to the private sector through incentive programmes. "A job with government cannot continue to be perceived as a cushy job for life," the Chamber said. It also called for the elimination of summer half days for public sector departments, which it said are "inconvenient for business and disincentivise people from moving to the private sector". On pensions, the Chamber is calling for an update to the cap on pensionable income, exempt all statutory pensions from taxation and allow those who retire ear- ly from full-time employment to work part-time. Cap on Third Country Nationals While reiterating its stand against businesses who unlaw- fully exploit foreign workers, the Chamber is proposing the intro- duction of a Maltese Blue Card for skilled professionals with criteria that include a minimum salary requirement of €40,000, a specified maximum residency duration, facilitation of relocation of family members and the possi- bility to change employer within the country within the same pro- fession. It also called for the introduc- tion of a cap on the percentage of Third Country Nationals a busi- ness can employ at any point un- less it is operating in healthcare or the provision of essential services such as waste management and public transport. The Chamber also proposes a monthly quota per company for TCN applications proportional to the number of employees regis- tered with Jobsplus. TCNs should be allowed to change employer freely once giv- en permission to work in Malta thus preventing abuses and im- proving retention within the la- bour market. Transport and parking The Chamber also called for the introduction of an e-mobility wal- let with government allocating an annual amount to every e-wallet for use by commuters on sustain- able and shared transport options. It called for the introduction of parking fees in central urban are- as and the conversion of on-road parking spaces to new multi-sto- rey underground parking spaces and regional underground mass parking facilities. It also called for a gradual phase out of petrol and diesel subsidies and a revision of vehicle road li- cence fees to reflect actual usage. The full report can be accessed online at the Chamber of Com- merce. Chamber of Commerce wants tax bands revised, calls on government to absorb part of COLA increase Chamber President Chris Vassallo Cesareo and CEO Marthese Portelli said the country must take "bold decisions even if they may be unpopular and challenging to implement"