Malta Budget 2017

Finance Malta is a non-profit public-private initiative set up to promote Malta as an international financial centre, both within, as well as outside Malta. It brings together, and harnesses, the resources of the industry and government, to ensure Malta maintains a modern and effective legal, regulatory, and fiscal framework in which the financial services sector can continue to grow and prosper. The Board of Governors, together with the founding associations: The Malta Funds Asset Servicing Association, the Malta Bankers Association, the Malta Insurance Association, the Association of Insurance Brokers, the Malta Insurance Managers Association, the Institute of Financial Services Practitioners; its members and staff are all committed to promote Malta as an innovative international.

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Ministry for Finance Edward Scicluna presented Malta's Budget for 2017 on the 17th October 2016.

Malta Tax

Ministry for Finance Edward Scicluna presented Malta's Budget for 2017 on the 17th October 2016. Below are the round-ups of the budget points from various FinanceMalta members. Download the full Budget report here (Maltese language)

Salient points from the Malta Budget 2017

Taxation

Income tax on government pensions and private pensions up to €13,000 will be removed next year
A €1.75 wage increase as part of the cost of living adjustment
Low-income people will actually be getting a raise of €4 per week through improvements to the in-work benefit and the supplementary allowance
Income tax on dividends paid to investors on the Malta Stock Exchange will be waived, and the government will introduce savings bonds a special rate targeted at pensioners
The price of cigarettes will go up by some 30 cents - the same as last year
New duties on non-alcoholic drinks (excluding water) and building materials including steel rods, glass and tile
Tax credits for employers who set up occupational pension schemes

Property

€5,000 tax concession for first-time property buyers will stay in place.
Incentives for those who buy property which needs renovation in urban conservation areas
Tax on Gozo property purchases is going down to two per cent instead of five per cent
Low-income tenants will have their rent subsidy doubled. Rents on social housing will be reversed to what they were in 2013

Transport

Free tallinja bus card for a year for everyone turning 18 in 2017
Incentives for private companies which organise transport for their workers
Plans for widening of part of the Hamrun bypass and improvements to the Mosta junction near Kinds

Infrastructure

Private sector to invest in a new school for foreigners at the former Mtarfa Hospital
Plans for a new breakwater in Marsamxett, a mother-and-child hospital, and schools in Victoria, Marsascala and St Paul's Bay
New primary schools planned for St Paul's Bay, Marsascala and Victoria
Call for proposals for the design, building and operation of the Gozo tunnel will be issued next year. A contract will be awarded for a fast ferry service between Valletta and Mgarr
A new fibre-optic link will be laid between Malta and Marseille, France, to reduce dependence on a hub in Italy
A new national oil company will be set up to handle oil exploration efforts.
Pinto Wharf to be extended by 12 metres to cater for bigger cruise liners in Grand Harbour. Deep Water Quay will also be extended
A Food Manufacturing Centre will be set up at the former Dowty site in Mriehel

Social welfare

Increases in the allowances to people who care for their parents or infirm relatives at home and those who receive the in-work allowance.
€1m fund for schoolchildren with a difficult upbringing or a deprived background

Source: Times of Malta

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