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8 maltatoday | TUESDAY • 31 OCTOBER 2023 BUDGET2024 Budget reiterates commitment for 80,000sq.m of urban green spaces Stamp Duty in Gozo up from 2% to 5% ENVIRONMENT PROPERTY JAMES DEBONO AS was already the case last year, the Fi- nance Minister made reference to plans for reclaiming land from the sea without pro- viding any hints about the locations of these potentially controversial projects. In the previous year, Clyde Caruana men- tioned meetings with experts to explore "projects" aimed at enhancing the environ- ment and adding value to the country. The next step involved further studies to deter- mine the economic and financial feasibility, as well as the social and environmental im- pact of these projects. In Budget 2024, Caruana once again talked about the identification of projects that not only "respect and improve the en- vironment" but also contribute "added val- ue" to the country. Caruana mentioned that experts have been analysing potential inter- ventions for these undisclosed sites over the past months. Eventually, this will lead to the submission of several development applica- tions by the relevant authorities following a national discussion on these proposals. Land reclamation has been on the govern- ment's agenda for the past five years with leaked studies conducting by the Environ- ment and Resources Authority in 2018 identifying the coastline between Xghajra and Portomaso as the best location for such a project. The budget speech also refers to plans re- lated to the development of an airstrip in Gozo for which a planning application was presented last year. The minister also referred to local plan changes aimed at ensuring that Hondoq ir-Rummien in Gozo is protected from de- velopment. With regards to planning the budget vaguely hints at a "revision of policies relat- ed to aesthetics" aimed at protecting street- scapes and giving greater importance to design in the planning process. Regarding urban greening projects, the minister mentioned the creation of a new square next to the Msida church, which was part of an already approved application for a flyover project in the area. He also referred to various initiatives by the Project Green agency, including the regeneration or crea- tion of 80,000 square meters of green open spaces, which are expected to include 5,000 trees. These projects encompass the fami- ly park at Bengħajsa, Ġnien iż-Żgħażagħ in Gudja, a dog park in Ħal Safi, a Green Cam- pus in Mosta, the extension of San Klement garden in Ħaż-Żabbar, and the regenera- tion of Ġnien Spencer in Blata l-Bajda. Up- coming projects include the regeneration of Serenity Garden in Santa Luċija and the family park in Marsaskala. The speech also mentioned ongoing works related to the conservation of valleys, with a focus on water retention structures such as dams and the restoration of over 6,000 cu- bic meters of rubble walls in Bidnija. In terms of water conservation, the gov- ernment announced an extension of a grant scheme introduced last year to encourage families to invest in home water purifica- tion systems. This initiative also helps re- duce the use of plastic water bottles. The grant for water filtration systems covers 40% of the purchase price and installation cost, with a cap of €100. The budget reveals that Malta currently has only 372 charging points for electric cars. The Minister reiterated the commit- ment to increase the number of charging points to 1,200. A renewed scheme for large-scale solar power installations carried out by the pri- vate sector is expected to generate enough energy for 3,650 households. IN a bid to control the construc- tion frenzy in Gozo, the budget envisages the elimination of a tax incentive that would allow property buyers in Gozo to pay a reduced 2% stamp duty rate, in- stead of the standard 5% rate ap- plied to the rest of the country. This tax incentive scheme was initially introduced in the 2017 budget speech with the aim of boosting economic activity in Gozo. Although it was meant to be temporary, it has been ex- tended annually since then. The Finance Minister describes this decision to maintain Gozo as an "island of villages." But all those who sign a promise of sale agreement by the end of Decem- ber will still be eligible for the re- duced stamp duty rate. A staggering 7,447 new dwell- ings were approved in Gozo be- tween 2018 and 2022. In 2022 alone, a record-breaking 1,885 dwellings were approved, sig- nifying an average of five new dwellings approved every day. Data from the National Statis- tics Office (NSO) indicates that property transactions in Gozo more than doubled by 2019, only experiencing a minor dip during the pandemic and then steadily recovering in recent years. The proposal to eliminate this fiscal incentive was initially pre- sented by a coalition of seven organizations known as "Għal Għawdex." The Gozo Regional Development Authority (GRDA) acknowledged the scheme's suc- cess in boosting property sales but also cautioned about poten- tial unintended consequences on the island's property market and community dynamics. Despite the increase in stamp duty, property buyers in Gozo will continue to benefit from other incentives designed to pro- mote the restoration of buildings in the Urban Conservation Area and the purchase of properties built over 20 years ago, which have remained vacant for the past seven years. Furthermore, the budget will raise grants for first-time buyers of these prop- erties in Gozo from the current €30,000 to €40,000. The 2021 census data revealed that 45% of Gozo's dwellings are either sec- ondary homes or vacant proper- ties. Continuation of property incentives On a national level, the budget outlines the continuation of fis- cal incentives for both property buyers and sellers in urban con- servation areas and properties that were built over 20 years ago and have remained vacant for more than seven years. This in- itiative, introduced in 2021, of- fers first-time buyers a €15,000 grant when purchasing a prop- erty in the Urban Conservation Area (UCA). Moreover, it con- siders the complete removal of capital gains tax and stamp du- ties on the first €750,000 of the property's price in these areas. The budget also includes plans for the abolition of the tax on the sale and purchase of proper- ties used for social accommoda- tion. This tax, which is limited to the first €200,000 of the total property price, applies to prop- erties that have been rented at an affordable rate in previous years. The removal of this tax will be applicable both when the property is sold to the ten- ant and when it is sold to third parties. Vague reference to land reclamation Projects with no specific sites mentioned First time buyers of vacant properties and properties in the UCA in Gozo eligible for a €40,000 grants up from current €30,000