Issue link: https://maltatoday.uberflip.com/i/585015
10 Budget 2016 maltatoday, TUESDAY, 13 OCTOBER 2015 PROPOSALS, INCOME AND PROJECTS Pretty vacant: derelict commercial properties could be taxed IN what could be a precursor to a law reform on all vacant proper- ties, government will be launch- ing a consultation process to draft a law, which would oblige owners of commercial properties to ensure that the buildings are not kept in a derelict or hazardous state. Sanc- tions could include a poll tax on vacant commercial properties, in- cluding unused shops and show- rooms. Sale of vacant residential buildings facilitated Government has taken on board the recommendation put forward by the Building Industry Consulta- tive Council (BICC) to facilitate the sale of vacant properties held up by inheritance disagreements. Currently, vacant properties can only be sold if 75% of heirs agree to the sale of a property which has been vacant for 10 years or more. Following the reform, vacant properties could be sold after three years and only need the approval of 51% of the heirs. Withholding tax on rents extended to commercial properties The 15% final withholding tax on the gross rental income on resi- dential properties introduced last year has been extended to com- mercial properties. Moreover, the final withholding tax on the sale of renovated properties in Urban Conservation Areas will be re- duced from 8% to 5%. Stamp duty reduction in Urban Conservation Areas In a measure which could result in further gentrification of old vil- lage cores, the 5% Stamp Duty tax threshold in Urban Conservation Areas will be reduced to 2.5%. This applies to contracts signed between January and December 2016. Stamp duty waiver extended The scheme where first-time property buyers benefitted from a stamp duty exemption on the first €150,000 of the value of the im- movable property acquired is be- ing extended to the end of 2016. The scheme was already extended to July of this year and promise of sale agreements and final contracts concluded after 1 July can apply for a maximum exemption of €5,000. Vacant Property ITS to move to Smart City GOVERNMENT will invest €56 million in constructing a new premises at Smart Cit y in Kalkara for the Institute of Tourism Studies (ITS). The relocation will herald a new beginning for the institute, which is looking at becoming an international centre of ex- cellence and increase its stu- dents from 700 to 900. Government will be issuing an expression of interest for the current ITS premises in the heart of St Julian's, which will undergo regeneration. The area will be home to Malta's first six-star hotel, and will also see the redevelopment of Villa Rosa. Starting from the next scho- lastic year, ITS students will receive a €233 grant to cover educational expenses. Tourism Tourists to pay €5 eco-tax WITH Malta expected to start re- ceiving 2 million tourists annually, visitors of 18 years or more will start paying an eco-contribution of 50c a night, capped at €5. This is expected to generate around €6 million a year and the funds will go to a new entity which will replace the foundation for tourism zone development. The new public private partnership will involve the Malta Hotels and Restau- rants Association, which ironically opposes the tax. The government will top-up the fund which will be used to upgrade and maintain pub- lic areas in tourist zones. Energy efficient hotels to receive grants A new agency created through a public private partnership will be set up to issue white certificates to hotels over energy efficiency. Once these initiatives will be audited and certified, hotels will receive grants or fiscal incentives. If successful, the scheme could be extended to other sectors, including restaurants. Heavy investment in border control IN 2016, the Armed Forces of Malta will be getting a new €14 million helicopter and a third new airplane which will cost some €16 million. Moreover, the finance minister said that over the next five years, the AFM will be getting a €38 million patrol boat through the EU's Inter- nal Security Fund. This will be cou- pled with a €7 million investment to upgrade a patrol boat already in possession of the AFM. Moreover, government will be investing €500,000 in training pro- grammes for soldiers while AFM personnel will have their allowance increased by 100%. Another €1 million will be in- vested in automated border control as part of the EU's iSmart Borders project. The police force's Economic Crimes Unit will be bolstered by the employment of a number of exerts, including accountants.