Budget 2003
The Malta budget 2011
Highlights
The Finance Minister's 2011 Budget speech outlined the main priority areas for government and gave a review of the performance of the Maltese economy. He laid on the Table of the House of Representatives a copy of the Economic Survey 2010 and a copy of the Budgetary Estimates.
Government shall be working on achieving economic growth while reducing the public sector deficit to below 3% and investing further in education, health, job creation, the environment and the social welfare system.
He proposed a total expenditure of 2.9 billion Euros, of which 340 million Euros will be invested in education and training, 378 million Euros in health, 858 million in pensions and social welfare, and 440 million in capital projects.
Government revenue is expected to reach 2,791 million Euros, recurrent expenditure is expected to reach 2.547 million Euros, while capital expenditure is expected to reach 440 million Euros. The deficit is estimated to reach 195 million Euros by the end of 2011. The deficit-to-GDP ratio is expected to be 2.8% at the end of end of next year.
Fiscal Messaures:
A weekly wage increase of €1.16 to compensate for the increase in the
cost of living with full compensation applicable also for pensioners.
Further sustaining of schemes currently offered by the Employment
Training Corporation (ETC) including Training Aid Framework,
Employment Aid Programme, Apprenticeship Scheme and Work
Trial Scheme.
Allowance of €25 per week for individuals who earn minimum wage
and enrol themselves for a special training scheme to be offered by
ETC (details to be announced).
Part of the income from part-time work earned by women whom
their spouses benefit from a form of social benefit, would not be
taken into account in the means test applicable to determine the level
of social benefits receivable by that family. The exempt portion will
be the result of the difference between the minimum weekly wage
and the full rate of social benefit applicable in the case of a couple.
Option for self-employed women to select a pro-rata rate of 15%
national insurance contributions in lieu of the current minimum rate
of €26.37 per week.
Government's participation in the EU Fund "Eurostarts" to enable
local small and medium-sized enterprises engage into joint projects
with foreign EU companies in the research and development sector.
Extension of 7 days to the filing due date of the VAT return if this is
filed through the VAT Department's on-line service facilities.
Persons, whose turnover does not exceed €7,000 per annum, would
not be required to register for VAT.
Set-up of fund for Entrepreneurial Training to be managed by the
educational Colleges for the financing of education programmes
related to finance.
Centralisation of common surveying by Government Departments
to avoid local enterprises providing the same data more than once to
different departments.
Soft loan schemes for hotel and restaurant establishments to
encourage investment in cleaner technologies.
Rebate of 15.25% of the value of the new motor vehicle (up to a
maximum of €2,000) if the old vehicle is scrapped. If the old vehicle
is not scrapped, the benefit entitlement would amount only to
7.625%. Scheme effective from 15th November 2010 for one year.
Registration tax attributable to carbon dioxide portion for hybrid
motor vehicles will decrease from 30% to 20%.
Persons investing in electric vehicle would be eligible for the "Gridconnected
renewable energy sources subsidy" with a maximum of
€5,000. Companies investing in electric vehicles would earn a tax
rebate of 125% of the value of the vehicle. These schemes are being
offered in addition to the scrap benefit listed above.
Annual motor vehicle license for electric motor vehicles will decrease
from €75 to €10.
Grants on training to incentivise technical personnel providing
maintenance service on electric vehicles.
Introduction of depreciation element (made up of age and mileage)
in the registration tax formula of commercial motor vehicles.
Increase in excise tax of €0.03 per litre on all fuels with immediate
effect.
Removal of excise tax exemptions on mineral oils to encourage the
consumption of renewable fuel such as biodiesel.
Increase in income tax rebate for parents sending their children
to private schools to €1,200 for primary/kindergarten schools and
€1,600 for secondary schools.
Refund of 15.2% of qualifying expenditure relating to new school
buildings by private school entities.
Proposed funding for collaboration between Government, employers
and tertiary education institutions to financially assist promising
sport athletes in their sports training.
Grants of 15.25% of the value of new sports equipment acquired by
non-profit making sports organisations recognised by the Malta
Sports Council.
Refund scheme of 15.25% (with a maximum of €150) on purchases of
new bicycles.
Removal of 6.5% registration tax for motor sport vehicles wholly
and exclusively used on racing tracks or other authorised areas by
Transport Malta.
Grants in total amounting to €250,000 in assistance to local sports
organisations utilised in the attraction of sports tourism in Malta.
The introduction of a scheme whereby credits of €15 are given
to students at secondary level for artistic, cultural and historical
activities.
Exemption for families with more than one disabled person when
purchasing one wheelchair accessible vehicle. Exemption is also
extended to families with one disabled person when purchasing the
second wheelchair accessible vehicle.
Removal of license payable on wheelchair accessible vehicles.
Increase in excise tax on beer by less than €0.01 per 25cl bottle.
Introduction of excise tax of €9 per tonne on construction cement.
Full-time farmers will benefit from a reduction in their payment of
Social Security Contributions from 15% to 12%.
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