Malta Budget 2020

Luca Caruana  -  14/October/2019


The following are the Malta Budget 2020 main points:

  1. No new taxes, tariffs or duties for 2020. Surplus expected as well
  2. Maltese economy has grown by 4.7% in the first 6 months of 2019
  3. The total employment rate in Malta stands at 230,000 persons
  4. 2019 saw a 5.7% increase in salaries
  5. A fiscal surplus of 1.4% is forecasted for 2020 - the fifth in a row. Debt is expected to drop to 40.4%
  6. COLA of EUR3.49 per week next year
  7. A bonus over and above the increase in cost of living. €15 for single-person households & €35 for families with 2 persons and more.
  8. Tax refund will be given for 3rd year in a row
  9. Tax rates for overtime pay will be reduced
  10. Stamp duty on transfer of business reduced to 1.5%
  11. No VAT on educational or vocational training (including distance learning courses)
  12. Pensioners to get EUR7 increase weekly (inclusive of COLA)
  13. Third Pillar pension programmes will be further incentivised
  14. Children's Allowance for children of widows/widowers to be given in full irrespective of whether they work or not
  15. Free public transport for pensioners aged 75+
  16. EUR300 Child Bonus for every new born or adopted child
  17. Persons suffering from severe disabilities will have their benefits increased by EUR11.4 per week
  18. New rent laws to be introduced in 2020 to ensure further transparency
  19. First time buyers extended to EUR175,000 instead of EUR150,000
  20. Persons under the age of 40 eligible for a home loan may benefit from an interest-free loan of up to EUR17,500 (to be repaid over 15 years)
  21. Social housing projects announced - a further 50 social housing estate blocks will be regenerated
  22. Housing Benefit widened and now includes households who spend more than 25% of income in rent - benefit to be given to households whose income is up to EUR32,000
  23. National strategy aimed at achieving carbon neutrality by 2050
  24. Lower tariffs to charge electric vehicles as from 2020
  25. Property owners who choose to sell the right to build up their property’s airspace will now be charged a 15 per cent withholding tax capped at a maximum of €100,000
  26. As from January 2021, the import and production of plastic bags, cutlery and straws will be banned
  27. Malta Enterprise to incentivise contractors to invest in environment friendly machinery that decreases pollution by granting up to a maximum of €200,000
  28. Exemption of registration tax on electric and hybrid cars
  29. Young people and students to continue benefitting from free public transport
  30. Scrappage scheme extended for 2020
  31. University of Malta qualifications on blockchain
  32. EUR 7 million to be invested in MCAST and University of Malta infrastructure
  33. EUR850 for young people who want to learn a foreign language in another country
  34. Malta Stock Exchange to promote the issue of Green Bonds as part of a strategy in favour of climate change
  35. The government will invest more in the Internet of Things, Fintech and Artificial Intelligence in 2020
  36. MicroInvest, Business Start and other programmes will continue by Malta Enterprise
  37. Malta Enterprise schemes to assist enterprises to recruit more persons with disabilities
  38. More investment in Esports and international competitive gaming events in 2020
  39. The government will aim to commercialise the space sector as from 2020
  40. 2.7 million tourists in 2019 (+4.5% increase on 2018)
  41. A new agency will fight financial crimes and will be known as the Financial Organised Crimes Agency
  42. Economic growth in Gozo has proportionally been larger than Malta.
  43. Film Fund in Gozo to attract new cinematographic productions and new fund in 2020 for Gozo to be attractive for conferences, meetings and other events
  44. Progress in the Aviation sector: Masterplan for the airport area, including a plan for drones
  45. A new agency will fight financial crimes and will be known as the Financial Organised Crimes Agency
  46. Limit of EUR10,000 for payment by means of cash on the purchase of propertyboatsyachtsdiamondsart and motor vehicles to fight money laundering

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