Issue link: https://maltatoday.uberflip.com/i/739617
4 Budget 2017 maltatoday, TUESDAY, 18 OCTOBER 2016 BUDGET MEASURES Fiscal measures and social imbalance measures Cost of living adjustment at €1.16, which will be further adjusted to €1.75 Eco-contribution to be removed on toiletries, detergents and batteries, and substituted by ex- cise Increase in excise on cigarettes, non biodegrad- able plastic bags, non alcoholic drinks Excise on building materials used mostly for large scale projects to be redirected to environ- mental projects Shareholders to be refunded tax paid on divi- dends from companies listed on Malta Stock Exchange Stamp duty on 2017 transfers of family busi- nesses will be reduced from 5% to 1.5% First-time buyers exempted from stamp duty when buying their first property New incentives for first-time buyers buying property in need of restoration inside Ur- ban Conservation Areas, with benefits up to €100,000 Stamp duty on all property purchases in Gozo during 2017 reduced from 5% to 2% Following introduction of 15% withholding tax option on rent, now all rental contracts have to be registered In-work benefit for working families on low income to be extended to more families and to increase from €1,000 to €1,200 Single-parent supplementary income to in- crease by €50, families with one working parent by €150: 3,000 low-income families to benefit directly from tis measure 27,000 persons expected to benefit from exten- sion and increase in supplementary allowance. Minimum wage earners will get €126 increase a year through in-work benefit, supplementary allowance, COLA increase. Married pensioners on min pension to get €4weekly/€208 annual increase in measure ex- pected to benefit 2,500 Maximum social security pension of €13,000 will no longer be taxed, affecting all pensioners: two-year reform will see 22,000 pensioners ben- efiting up to €585 annually, with 9,000 no longer paying any tax while 9,500 pensioners who have only one pension will get an increased supple- mentary income Pensioners of 75 years or older and living inde- pendently will get €300 annual grant while el- derly without enough NI contributions get pen- sion increase of €50, benefiting some 12,500, mostly women 5,000 service pensioners to benefit from in- crease in €200 in amount deductible from social security pension Removal of gender discrimination to be re- moved from Social Security Act computation that will see a number of women pensioners benefiting from up to €20 weekly or €1,040 an- nual increase Carers' Allowance for those taking care of el- derly parents will no longer be means tested and increased to €140 monthly, equivalent to €1,820 annual increase. Increased Carers' Allowance to be introduced for those taking care of highly dependent persons to €90 weekly, that is, €728 increase on current levels. Pensioners to get all cost of living adjustment increase Benefit for highly dependent persons who can- not access labour market to gradually increase to minimum wage level All amputees will be eligible for disability pen- sion, while pink card benefit granting access to free medicine to be extended to more persons with disability Rental subsidy to double from €66.67-€83.33 to €133.34-€166.66 and eligibility widened so that beneficiaries double from 1,400 to 2,800 fami- lies Increase in government housing rents enacted in 2009 to be reversed and refunded Pilot project for private landlords entering into 7-year rent contracts with low-income families to be taxed at a reduced 5% rate Creation of €8 million fund to address wage anomalies over the next seven years for corps and electricity board pensioners, former steve- dores and police overtime arrears Carer at Home programme to be extended, with elderly people employing carer benefiting up to €5,200 annually Government to issue savings bonds with mar- ginally higher interest rates open exclusively to pensioners New means test for 1,000 persons, mostly pen- sioners, to qualify for pink card and to have wider access to free medicine Social fund to target students from deprived backgrounds to be set up with initial €1 million fund, two new family literacy centres and foot- ball literacy programme to be rolled out Students choosing to keep on studying but shifting to a lower qualification will now still get a stipend Energy and environment Malta expected to reach 50% of 2020 renew- able energy targets by year-end • Enemalta to give public opportunity to invest in its own so- lar farms; Water Services Corporation, GRTU, MDA agreement on private solar farms to come into effect 1,000 families to get grants to install PV panels, insulation, energy saving tools: Combined ef- fect of 440 metric tonnes CO2 emissions' reduc- tion • Grants for families to change high-energy consuming appliances together with energy au- dits for families and businesses Government to issue Solar Bonds which will be used to finance PV panel installations in public areas 7 million cubic metres of waste water will now be treated and used for agriculture and industry, while WSC community projects in Xghajra to compensate for Ta' Barkat inconvenience, and Bahrija for delayed road works Persons who bought vehicle in 2006 will get back extra tax charged by previous administra- tion. €9.5million already refunded Businesses organising transport for their em- ployees will get 150% tax deduction on their expenses, capped at €35,000 • Businesses join- ing forces to provide such a service together will benefit up to €50,000 All government entities with more than 50 em- ployees will be required to present a sustainable transport plan Young people turning 18 in 2017 will be given one year of free public transport. Initiative, val- ued at €312 per person is aimed at showing pub- lic transport is a real alternative Businesses teaming up with local councils for community projects to get 120% tax deduction on project expenditure Work to start on new public green areas in Swa- tar, Bahar ic-Caghaq, Next to Mater Dei, Wied Blandun and Bormla Upgrade of Ta' Qali picnic area and identifica- tion of new camping site €3 million to be invested in upgrading Argotti, San Filippu and Mall gardens in one botanical garden Transfer of agricultural land for farmers to be simplified, and young farmers to be offered favourable land leases Businesses to be given opportunity to regu- larise the position of retail outlets in govern- ment property Fiscal incentives for investors developing community car parks and public spaces Grants for restoration of facades of private historic buildings Fuel tanks in middle of Birzebbugia to start being dismantled next year Business Malta Development Bank to have €200 mil- lion authorised share capital, of which €30 million paid up • Malta Development Bank to work with EFSI. First earmarked project is Marsamxett breakwater Joint Enforcement Task Force to clamp down on illegal employment and unregistered rents National Economic and Social Development