Issue link: https://maltatoday.uberflip.com/i/1547329
3 maltatoday | TUESDAY • 27 OCTOBER 2026 BUDGET 2027 super bonus in hands by March the 2027 Budget. Finance Minister Clyde Caru- ana announced that, within the first three months of 2027, government will be sending out €1,000 to workers who earned €12,000 or more in 2025. Your 2025 income and your super bonus Workers earning less than €12,000 will receive a reduced payment according to their in- come bracket. Those earning between €11,000 and €11,999 will receive €925, while those earning between €10,000 and €10,999 will receive €875. Workers earning between €9,000 and €9,999 will receive €800, while those earning between €8,000 and €8,999 will receive €725. Meanwhile, those earning be- tween €7,000 and €7,999 will re- ceive €650, dropping to €575 for those earning between €6,000 and €6,999. The lowest payment of €500 will go to those whose em- ployment income ranged be- tween €2,000 and €5,999. individuals, pensioners who continue working, and part-timers (File Photo) tion on hotel accomodation will rise to €8 per person per night for guests staying in hotels, guest- houses and other collective ac- commodation, and €10 for those staying in short-let apartments. The maximum charge will be capped at €64 per person for col- lective accommodation and €80 for short lets. The contribution will apply to people aged 18 and over, while eco-contributions on accommodation for students at- tending English-language schools will be abolished. The increase comes as Malta's tourism industry exceeds 4.5 mil- lion visitors and 28 million nights spent in accommodation. The government argues that tourists benefit directly and indirectly from public subsidies, including energy subsidies, while placing ad- ditional pressure on infrastructure and public services. In a pre-emptive response to concerns from the tourism in- dustry, the government argued that tourists already benefit from public support, noting that they "directly or indirectly benefit from energy subsidies across their broad scope". It said the eco-con- tribution was being increased in response to rising energy prices and the need to continue invest- ing in Malta's tourism product. The increase follows last year's budget decision to raise the night- ly eco-contribution from €0.50 to €1.50. The government had projected that the environmental contribution would generate €21 million in 2026, compared with an earlier estimate of €7.4 million and revenue of €6.08 million in the preceding year. The €21 million projection al- ready reflected the tripling of the nightly rate to €1.50. The new €8 hotel rate is more than five times higher, while the €10 short-let rate is more than six times higher. The measures extend beyond overnight accommodation. Cruise passengers who disembark in Malta and subsequently re-em- bark on the same cruise ship will pay a €10 eco-contribution. Pas- sengers who begin their cruise in Malta will be exempt. Visitors to Comino will face a €5 eco-contribution integrated into the Blue Lagoon's time-slot book- ing system. The charge is intended to help manage visitor numbers, preserve the island's ecosystem and fund improvements in safety, cleanliness and facilities. Tourists will also pay €3 more per trip on the fast ferry, while non-resident fares on the Gozo ferry are being increased substan- tially. The government expects the revised non-resident ferry tariffs to generate €13 million in revenue. An adult non-resident ticket will rise from €4.65 to €11, while a child's ticket will increase from €1.15 to €7. The fare for a vehicle and non-resident driver will rise from €15.70 to €22. A vehicle carrying a driver and one adult passenger will cost €33, up from €20.35, while a vehicle carrying a driver, an adult pas- senger and a child will cost €40, compared with €21.50 previ- ously. The measures are intended to reduce reliance on public subsidies for transport services used by tourists and non-resi- dents, while generating addi- tional revenue from visitors who do not contribute to the public finances through ordi- nary residence-based taxation. Tariff revisions on non-res- idents for ferry transport are expected to generate €13 mil- lion in revenue. Tourist taxes are also com- mon in competing Mediter- ranean destinations, although rates and charging systems vary. Barcelona charges €8.40 per person per night in four-star hotels and €12 in five-star ho- tels, including regional and municipal taxes. Athens levies €10 per room per night in four- star hotels and €15 in five-star hotels during April to October. Lisbon charges €4 per per- son per night, capped at sev- en nights, while Rome charges €7.50 in four-star hotels and €10 in five-star hotels, capped at ten consecutive nights. Mal- ta's new €8 nightly hotel charge would be broadly comparable to Barcelona's four-star rate. From 1 January, the eco-contribution on hotel accomodation will rise to €8 per person per night for guests staying in hotels, guesthouses and other collective accommodation, and €10 for those staying in short-let apartments THE corporate tax rate will be reduced to 25% from 35% for small to medium SMEs with a turnover of €1 million or less as long as profits are reinvested back into companies. The measure is aimed at in- centivising SMEs to upscale their companies and reinvest. However, the reduced tax rate will only apply to profits kept within the company or re- invested in the business. Profits paid out to shareholders will continue to be taxed at 35%. Finance Minister Clyde Caruana said the reduction will complement the Youth- Led Start-Up Support Scheme introduced earlier this year, encouraging young entrepre- neurs to establish their own businesses. The reduction of corporate tax for companies was pledged by the Labour Party in the 2026 general election. Lower corporate tax for companies reinvesting profits KARL AZZOPARDI kazzopardi@mediatoday.com.mt