Issue link: https://maltatoday.uberflip.com/i/417582
9 Budget 2015 maltatoday, TUESDAY, 18 NOVEMBER 2014 REACTIONS TO BUDGET GRTU welcomes eco-tax removal on certain items THE Malta Chamber of small and medium enterprises (GRTU) welcomed the govern- ment's budget announcement that eco-tax will be removed on certain items, such as electronic devices. "Removal of the eco-tax was one of our priority proposals for Budget 2015," the GRTU said in a statement. "Even though the measure as announced in the Budget excludes a number of products at this stage, we con- sider this as a big win following the intense pressure we put in and especially since the GRTU's proposed solution seems to have been adopted." However, they said that their optimism is only cautious fol- lowing a lack of results after the government's commitment to review the eco-tax last year. "The government has this year introduced an expiry date for this tax in ten months' time, which it considers necessary to affect the required shifts in line with the Waste Electrical and Electronic Equipment Direc- tive," the GRTU said. "We will continue following this issue closely to ensure the deadline is met and expects to partner in the actualisation. We will ensure the new system is fair and establishes a level playing- field." The GRTU also welcomed the government's commitment to tackle unfair business competi- tion and improve the access to finance for small and medium enterprises. However, the GRTU criticised the lack of a reversal of last year's increases in licences for commercial vehicles. "We will continue insisting with the Government that these increases were introduced with- out consultation and economic impact assessment," the GRTU said. "From a general overview of this year's Budget, it transpires that further increases might be foreseen. The GRTU feels these affect our enterprises` competi- tiveness very negatively and the GRTU will immediately endeav- our in addressing the issue." YOUR FIRST CLICK OF THE DAY www.maltatoday.com.mt GWU satisfied with measures against precarious work THE General Workers' Union ex- pressed satisfaction at having a number of proposals included in the 2015 Budget, especially the measures addressing precarious work. The union said that the budget incentivised work, including meas- ures encouraging the employment of women and persons with dis- ability. "The budget therefore offered something for all workers, from low income earners to the middle class and the most vulnerable people such as pensioners and people on social benefits." The GWU also noted that a number of measures compensated for the meagre COLA adjustment of 58c without piling pressure on other economic sectors. Moreover, the union said that the sustainable growth targets and the 1.6% defi- cit target create a feel-good factor which should incentivise more in- vestment and stability. The reduction in fuel and energy prices, the union said, should also lead to better working conditions. "While the 2015 Budget offers more opportunities to whoever genuinely wants to enter employ- ment, it also addresses abuse of the welfare system. The GWU is there- fore satisfied with the government's efforts to create a just society which respects honest citizens and does not deny anyone a decent standard of living." The GWU however shed doubt on what it described as increases in certain services and products which could impact the cost of living. AD says government should seek to improve minimum wage AS a post-budget reaction, Alter- nattiva Demokratika called for the introduction of a mechanism for the periodical revision of the minimum wage. "While the government's in- troduction of social measures for people on a minimum wage is commendable, working people should not be dependent on hand- outs throughout their lives," AD chairperson Arnold Cassola said. He also said that local councils will continue to struggle when it comes to providing basic services as they have been lumped with the same financial allocation. "There is also no indication on whether local councils will get funds from trading licences of shops and vendors that operate in their localit y. "As for taxes, while the income tax rate has been decreased again for those in the €19,500-€60,000 tax bracket, this has meant, as AD had predicted, an increase in a host of indirect taxes. The gov- ernment has also failed to address the issue of taxation exemptions for foreign corporations. After Luxembourg and Holland, the EU had already started investigating the fiscal incentives that Malta offers to foreign companies to set up shop in Malta. The issue of a level playing-field with regard to taxation cannot be put on the back-burner." Cassola also said that invest- ment in infrastructure is needed to make roads safe for alternative means of transport such as bicy- cles and pedelecs. "The government is contradict- ing itself when it says it wants to reduce traffic and at the same time says it wants to create more parking spaces," Cassola said. "More parking spaces generate more traffic. It is clear the govern- ment has no vision when it comes to sustainable mobilit y." However, Cassola commended the gradual weaning off social services as opposed to an abrupt cut, the additional financial aid to working parents with young chil- dren, the increase in payments for maternit y leave, the removal of eco-tax from electronic products, the enforcement of disabilit y-em- ployment laws, and the increase in direct taxation on cigarettes and spirits. "The tax incentive to busi- ness companies that donate over €2,000 to the Communit y Chest Fund is a positive measure, but it is unfair that this is limited only to business people," Cassola added. "It should be extended to all. Even donations to registered NGOs should be tax exempt." "The 15% rebate for those in- vesting in private pensions (third pillar) is also commendable, but this is meant only for those peo- ple who can afford such pensions. The government should have con- centrated on second pillar pen- sions, which are shared by the government, the employer and the employee." GWU secretary-general Tony Zarb AD chairman Arnold Cassola GRTU president Paul Abela