Issue link: https://maltatoday.uberflip.com/i/1540773
8 maltatoday | TUESDAY • 28 OCTOBER 2025 BUDGET 2026 Your next pay rise might be paid for by the government THE government will cover part of your wage increase if you have been working at the same company for more than four years. Announced during Budget 2026, the government will cover 65% of the wage increase given to employees who have been working in a company for over four years, to a maximum of €780. For companies in Gozo, the government will cover 80% of the increase, or €960 maximum. The total financial help through this mechanism, which will be administered under MicroInvest, will increase from €45,000 a year to €65,000 for Maltese companies and €80,000 for Gozo compa- nies. During his speech, Finance Minister Clyde Caruana announced changes to Malta Enterprise's MicroInvest scheme, which helps businesses expand and de- velop their operations. He said the scheme will be widened to include investments in digital solu- tions, while the tax credit will increase to €65,000, or a maximum 65% of eligible expenses. Gozo enterprises will keep their 20% ad- ditional bonus under the scheme, while the total sum of aid for specific categories will increase to a maximum of €85,000. Companies looking to invest to improve value added or general productivity, or even to start a new business, will be eli- gible for a tax credit of up to 60% of the investment value, spread over four years. The investment would have to take place within the next two years. Companies will also be able to apply for a tax benefit on AI investments. This will take the form of a 175% tax benefit on re- search and innovation investments, with an accelerated tax write-off across two years. To boost AI knowledge, the government will also offer an 'AI for all' scheme, by covering the costs of attending an accred- ited course in artificial intelligence. As part of the scheme, the government will also pay for a premium subscription to AI software such as Gemini or ChatGPT Plus. NICOLE MEILAK nmeilak@mediatoday.com.mt Under-30s to receive €25,000 over five years to give up driving licence New Sliema carpark promised • No reference to metro YOUNG people are among the main beneficiaries of the latest transport incentives. Those up to 30 years old can renounce their car licences in exchange for a grant of €5,000 per year for up to five years. The initial proposal made last year had been aimed broadly at all drivers, irrespective of age. Critics had pointed out that this approach would have mainly attracted older drivers, who are least likely to give up their cars. Additional measures encourage the use of motorcycles, including grants for purchasing motorcy- cles and incentives for switching from car to bike. Electric vehicle grants are maintained, and the scrappage scheme continues to support the replacement of old vehicles with cleaner alternatives. Emergency services will also be upgraded with specialised vehicles capable of responding to incidents in- volving electric cars. New carpark in Sliema Urban mobility and parking are being addressed through several major projects. In Sliema, work is underway on a high-quality open space with underground parking, designed to reduce con- gestion in one of Malta's busiest areas, though no specific location has been named for this project. The budget also refers to other previously announced initiatives, including the new underground parking facility in Bormla and the Pjazza tal-Assedju project in Rabat, Gozo, which will be trans- formed into a multi-story garage with capacity for around 340 ve- hicles. Traffic management strategies include off-peak service provi- sion to support a 24-hour econ- omy and discussions on off-peak waste collection and deliveries. Road safety The budget references the Vjal Kulħadd initiative, which in- cludes five projects to redesign local roads for safer, more en- vironmentally friendly use. The project is aimed to improve ac- tive mobility infrastructure for pedestrians and cyclists, while road safety campaigns such as Aħsibha Darbtejn (Think Twice) and the upcoming Road Trans- port Investigation Bureau are set to enhance overall traffic safety. Gozo road projects In Gozo, reconstruction of the main road connecting Rabat to Marsalforn is entering its final phase, while arterial works in Nadur and Qala are planned. New pedestrian walkways will link the Park and Ride facility in Ta' Xħajma, Xewkija, to the cen- tre of Rabat, and the Gozo bus fleet is slated for full electrifica- tion by 2026. A traffic and pub- lic transport study will examine ways to improve flow in Rabat's centre. Ferries Maritime transport infrastruc- ture is also being expanded. A new fast ferry terminal is includ- ed in the Marsaskala promenade regeneration, and three new sea routes—from Sliema to Buġibba and Gozo, Marsaskala to Vallet- ta, and expanded Valletta–Gozo and Ċirkewwa services—will double Gozo's connectivity. Ter- minal improvements are planned at Ċirkewwa and Mġarr, along- side environmental upgrades in the Grand Harbour under the Shore-to-Ship Supply 2 project. No metro in the budget The budget makes no mention of large-scale mass transit sys- tems such as a metro or a hybrid system in an indication that no final decision has yet been taken. JAMES DEBONO jdebono@mediatoday.com.mt