Issue link: https://maltatoday.uberflip.com/i/417582
4 Budget 2015 maltatoday, TUESDAY, 18 NOVEMBER 2014 TRANSPORT/GAMING Tax credits for school transport, intelligent traffic system, no bus fare increase THE much-awaited new public transport system will be introduced next year, but the government is shy- ing away from giving a fixed date. Indeed, the budget speech refers specifically to the anticipation raised in the failed Arriva public transport system launch in 2011. There will be more bus routes and a better service is being promised. 23 million euros annually will be contributed as part of a public service obligation. The price of bus tickets will not change and indication of a discount- ed price for a bundle of tickets is be- ing mentioned. The government is saying that it intends to encourage more individuals to depend on the public transport system. Traffic management Addressing the issue of gridlocks, an Intelligent Management System will be introduced that will follow traffic flows in real time. The tech- nology, costing some €8 million, will be supported by cameras that will be relayed to outdoor screens that will inform drivers of on-going traffic. The aim is to avoid traffic conges- tion and gridlocks. Car-pooling A public private partnership be- tween Transport Malta and a youth group to launch a new electronic site will be developed together with a mobile application. The whole idea is aimed at promoting car- pooling in an effort to reduce the dependence and underutilisation of private cars. Vehicles which use car-pooling will be encouraged to make use of bus lanes. In the first stages of this initiative, schools des- tinations are being targeted. Private school transport and parking policy As a measure to incentivise the use of private school transport for church and private schools, the government will be offering a tax credit of €150 to all those who use this transport. A white paper is to be launched to look into changing the opening hours of private schools. No concrete measure on parking is being suggested, but a 'parking policy' will be debated with all the stakeholders. A parking lot for 370 cars will be launched in Bormla and Birgu and managed as a public private partnership. Two proposals have already been proposed, according to the budget speech. VAT refund, scrapping of old vehicles, maritime traffic The electoral promise and sec- ond tranche of payments for VAT paid for those vehicles purchased between May 1, 2004 and Decem- ber 31, 2008 will be forwarded to those eligible. The government has already paid €3.1 million in refunds. Half a million euros will be al- lotted for refunding those who scrap their old vehicle. The target is for 600 people to benefit from this scheme. Those who convert their com- mercial vehicle to 'autogas' will be given €200. To encourage the use of bikes and pedelecs the government will be refunding 15.25% of the price of the bike. In a bid to encourage the use of maritime traffic, a public private partnership will be set up for the use of transport in the port area by means of water transport. The government is looking to enter into private partnerships that will lessen the pressure on road traffic and reduce pollution. THE POWER OF LOBBIES From floating casinos to transfer of property THE 2015 budget addresses the gripes of various lobby groups. Cruise liners will now be able to operate their casinos in Maltese waters, opening up a new revenue stream for them and the Lotteries & Gaming Authority. Until now cruise liners have been banned from operating their casi- nos. Another interesting proposal is that the transfer of property will be taxed at 8% of the sales value of the property – it was formerly 12%. This measure is surely a reaction to the demands of the vociferous Malta Developers Association. The government justifies this measure by stating that it will en- sure fewer enforcement measures and smoother administration. Property agents may finally get what they have been praying for with the government appearing to be acceding to their demand by drawing up a white paper to regu- late the real estate agents sector. The GRTU's demand for the re- moval of eco-tax seems to have found a willing interlocutor with the government and the eco-tax for electronic goods will be phased out. However the removal of eco-tax from tyres will be replaced by ex- cise duty. Businesses' grievance about an A-Z compliant and enforcement agency appears to have finally sen- sitised the government, which will be looking into centralising all the enforcement agencies under one roof, that is MEPA, MTA, ETC, OHSA and others. The pensioners and disabled concerns have been addressed and especially with regard to the disabled, where government has obliged itself to realise a 1967 le- gal proviso that companies should employ disabled persons and that these should represent 2% of their workforce. This will be encouraged with tax refunds for those who comply, and with penalties for those employers who do not. A small but vocal lobby, the Val- letta retail operators will also welcome the new scheme to allow operators and not tenants to enter into a lease of the outlets that they have been operating. Investors who have had to face sour experiences with their invest- ments will be having their financial ombudsman, a reaction to the criti- cism that the MFSA failed to stand up for them. Sandy beaches are being ear- marked for three areas, which in- terest local communities and busi- ness concerns. These include Taħt iż-żiemel in Valletta, next to the reverse osmosis plant in Pembroke and then next to the aquarium in Qawra. Green NGOs are also being roped in with their involvement in creat- ing walkways in the Maltese coun- tryside and the management of na- ture sites. They will also be pleased that hunting cartridges will have an excise tax of 70c per kg, and tuna fish feed of 10c per kg. Tree huggers will also be pleased to hear that swimming pool own- ers will be paying €4.60 per m3 for domestic pools and €6.90 per m3 for commercial pools. Motorsports enthusiasts will be enticed by the decision to call for an expression of interest to set up facilities for a motorsport track. A carnival village study will be fi- nanced by a handsome €80K grant. And finally the government will be addressing the press itself by ad- dressing the issue of the antiquated press laws, and states that it will address the libel law by ref lecting on the importance of a free and dy- namic press. Cruise liners will be able to operate their casinos