Issue link: https://maltatoday.uberflip.com/i/417582
maltatoday, TUESDAY, 18 NOVEMBER 2014 2 Budget 2015 maltatoday, TUESDAY, 18 NOVEMBER 2014 BUDGET MEASURES How it affects you Smokers and wine lovers The rate of excise tax on cigarettes and tobacco, fuel and cement will be revised upwards, however the price of fuel will still decrease. Revision of excise tax on mobile phone lines and an excise tax on wine. Government will replace the eco-contribution on tyres, ammunition and petroleum oils with excise tax. Revision in Stamp Duties Stamp duty on insurance docu- ments and services will be revised. No changes will be made to stamp duties on life insurance policies. Revision in licences Licences on cars that pollute by more than 100g/km of Co2 will be reviewed, while those with Co2 emission rates of not more than 100g/km and registered after 2009 will not be affected. Increase in li- cences of swimming pools. Income tax The rate of personal income tax of 29.0% applicable to those who earn €60,000 or less will be reduced to 25.0%. This will apply to every com- putation: single, married and paren- tal. Income from dividends received by individuals will remain taxable at the same rate. COLA COLA at €0.58 and full amount of COLA will be granted to pension- ers. One-time bonus Annual bonus of €35 to all persons in receipt of social security benefits, all low income earners, and all those income tax payers working full-time not benefitting from the 2015 in- come tax reductions. It will also be given on a pro-rata basis to students and part-time workers. In-Work Benefit Benefit for low-to-medium income families where both spouses are in employment and have dependent children up to 23 years of age. This benefit will also apply to single par- ents in employment. Extension of Free Childcare Government committed to main- tain and expand this service. Benefits for Single Parents – Tapering Single parents on social assistance can at present retain their benefits if they are earning less than €56.94 a week. As from 1 January, 2015, this clause will be replaced with taper- ing of benefits. Single parents who become employed will retain 65.0% of social assistance for the first year, 45.0% for the second year and 25.0% on the third year. Their employers will also benefit from 25.0% of the benefit for the first three years. This means that single parents will be able to substantially improve their income if they enter employment. Youth Guarantee New claimants for social assistance benefits, under the age of 23, will be placed on Youth Guarantee. Exist- ing claimants, under the age of 23 years, will be given a time window of four months to enter Youth Guaran- tee. Single parents will be exempted until their youngest child is one year old. For 2015, 700 Traineeships and 200 Work Trials will be financed. Tapering of benefits after marriage From the start of next year, a per- son who is receiving social benefits and gets married, or forms a civil union, with a person in employment will no longer lose entitlement to so- cial benefits immediately after the union. Instead, the social assistance will be reduced gradually over a pe- riod of three years. Regularisation of benefits Persons on social benefits will have up to February 2015 to regularise their position if abusively receiv- ing benefits. Thereafter, in case of abuse, a penalty will apply. Removal of eco-tax Removal of eco-contribution on electronic and white goods classi- fied as WEEE items, by September 2015. Seed Investment Programme Income tax law will be amended to provide tax credits equivalent to in- vestment made in start-ups, up to a maximum of €250,000 per year. Family Business Act Clear definition of what consti- tutes a family business will facilitate and incentivise the transfer of busi- ness between members of the same family. Social enterprise Community Work Scheme for so- cial enterprise, with minimum wage for workers services to schools and local councils. Public-Private Initiatives – Projects Malta PPPs for enlargement of sandy beaches, breakwater between Val- letta and Sliema. Among other ben- efits, Bighi hotel, Cospicua health centre. Cruise liner casinos Cruise liners can remain in Malta overnight. They will be able to open their casinos after obtaining ap- proval from the Lotteries and Gam- ing Authority upon the payment of a fee Tax Refunds for Non-EU Residents A number of countries operate various schemes whereby visitors, coming from countries outside of the European Union (EU), can ob- tain a refund on VAT before leaving the country. During the next year, this Administration will be intro- ducing similar systems in Malta. Gaming Malta The LGA will be converted to a Malta Gaming Authority. Shop Opening Hours Rules governing shops opening days and hours will be revised. 'Sukuk' and Islamic Banking Necessary legislative changes will be made to attract and facilitate fi- nancial institutions involved in this sector to start operating in Malta. Trade Malta Joint venture between the Govern- ment, the Chamber of Commerce, Enterprise and Industry to enable Maltese enterprises to better exploit international markets. Scheme for Valletta shops A scheme for retail outlets in Val- letta will be set up, which includes the opportunity for owners to apply for the title of ground rent instead of a lease. Wi-Fi State Making Malta into 'Wi-Fi state'. Currently there are 191 hot spot ar- eas of free internet, these will be ex- tended to cover more places. Police and army New CEO for police corps and border revenue corps to fight tax evasion. Increase in university stipends Stipends will increase by the pro- rata amount of COLA and for the first time, these will be topped up by a one-time additional pro-rata bonus per week in view of the fact that students are solely dependent on COLA as the main source of in- crease to their student income. Reduction in VAT on digital books 5% on e-books instead of 18% New schools New schools in Rabat, Malta, Naxxar and Rabat, Gozo. As from next year, work will start on build- ing two new schools in Dingli and Kirkop. White Paper on School Opening Hours White Paper to initiate a process of consultation with regard to the transport of children and school opening hours. EOI on Recycling Plastic Waste An expression of interest will be is- sued to introduce recycling of plas- tic waste. Environmental Taxes Tax on feed used in fish farms Reduction in Utility Rates for Industry As promised, in 2015, utility rates for the industry will be reduced. PPP in the Health Sector Company to finance orthopae- dic specialists at Mater Dei Hospital committing them to increase the number of operations carried out during their normal working day and continue with a number of oper- ations in their spare time including weekends. The aim is to reduce the waiting list substantially. This pilot