The Budget 2020 in a Nutshell
by Mr Yellow
The budget speech is a much anticipated appointment on the Maltese calendar and everyone gets a little curious about the measures that will affect them directly or indirectly.
The Budget 2020 was presented on Monday 14th October and we're highlighting the most noteworthy measures included in the principal sections:
Income and Quality of Life
- A weekly Cost of Living Allowance (COLA) increase of €3.49 for all employees, pensioners and social benefits recipients. Students stipends will also be increased on a pro-rata basis.
- A one-time bonus of €15 for single person households and €35 for households with more than one person.
- An additional day of vacation leave.
- A tax refund for all individuals in employment with larger reductions planned for lower income brackets.
- A reduced tax rate of 15% on the first 100 hours of overtime for non-managerial employees with a basic salary of up to €20,000.
- A VAT exemption on the provision of education-related services.
- Free Tal-Linja Card for all senior citizens who are 75 years and over.
- An additional bonus for every newborn or adopted child.
Environment and Sustainable Development
- Additional charging points around the Maltese Islands and reduced household electricity rates for electric car owners.
- The introduction of the Beverage Container Recycling Scheme which aims to encourage the recycling of containers through deposit machines that will be installed around Malta and Gozo.
- A subsidisation scheme for the setting up of 'green corners' in grocery stores and supermarkets that encourage customers to bring their own containers and purchase food items by weight.
- A gradual ban of single use plastic leading up to a complete ban by 2022.
- VAT refunds for the purchasing of bicycles, electric bikes, motorbikes and scooters up to a maximum of €400.
- Continuation of the grant scheme that encourages local councils and companies to install bicycle racks.
- Extension of the scrappage scheme for old vehicles up to a maximum of €1,500 for new vehicles that are highly energy efficient.
- Continuation of the free transport initiative for all primary and secondary students in government, church and independent schools.
Business and Competitiveness
- Extension of the MicroInvest Scheme that helps businesses to increase their competitiveness.
- Added support for full-time farmers and fishermen.
- Continuation of the Gozo Business Scheme so as to encourage more businesses to establish their operation on the sister island.
Need a little help to gear up your business for the next year? Get in touch with these business consultants for the necessary guidance!
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