[LIVE] Income tax cuts for lower income earners, increase in pensions

Gozo permanent link feasibility done: Prime Minister says tunnel more feasible than bridge

Finance Minister Edward Scicluna (Photo: Ray Attard)
Finance Minister Edward Scicluna (Photo: Ray Attard)
It's Budget time!
It's Budget time!
21:23 Budget speech soon over ... stay with us for the press conference by the two political leaders. Miriam Dalli
21:22 Rapturous clapping as the Finance Minister says the government is moving forward in the right direction. He reiterates that the government had a clear vision for the country, “the complete opposite of the bailout claimed by the PN”. Miriam Dalli
21:21 200 or so people each owed up to €50,000 in compensation for expropriated land will be paid in full. Miriam Dalli
21:20 Miriam Dalli
21:19 Miriam Dalli
21:18 The Housing Authority will undertake maintenance and beautification programmes on social housing estates in Hamrun, Ta’ Giorni and Pembroke. €50 million will be invested into the development of new social housing blocks.

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21:15 A new hub will be set up for people with a disability, so as to promote their inclusion and participation in communities. The hub will include private residences, a hostel, a respite centre, shops, a pool, a day centre, and an underground parking space. Miriam Dalli
21:15 Miriam Dalli
21:13 Miriam Dalli
21:10 MHRA’s reaction to the ‘environment contribution’: “If managed well should not adversely impact tourists’ numbers to Malta.” Miriam Dalli
21:06 Environment and agriculture

A Spatial and Mapping Service project will be set up to analyse sites of national importance.

The Maltese seas will be monitored for pollution.

MEPA will be split up into two separate authorities – one focused on the environment and the other focused on planning.

Government will launch a public consultation over the possibility of designing a new law that will regulate food waste, particularly from large establishments such as supermarkets.

The Floriana Botanical Gardens will be beautified and converted into “a centre of environmental recreation”.

Studies on a new system for the management of farm waste will continue. The animal cemetery will be extended.

Identification chips will be installed on Pitkali crates, so as to render them traceable.

Miriam Dalli
21:04 Leave from work will be granted to couples, for a number of days after IVF treatment. Miriam Dalli
21:00 Health

A PPP will be set up to reduce waiting lists for people who require hip and knee replacements.

A new block at Mater Dei will add 68 new beds to the national hospital, medical tourism facilities will be set up at the Gozo General Hospital, and the Karen Grech hospital will be developed into a hospital for the elderly.

A new dermatology centre will be built, with 12 beds for inpatients.

St. Luke’s will be developed into a hospital for medical tourism, a project that is projected to create 1,000 new jobs.

A pilot project will be launched that will see medicines delivered directly to people’s homes.

A request for proposals will be issued for the operation of the Hal-Kirkop medical centre.

A specialised paediatric emergency service will be introduced for children. A plan for the upgrading of Mount Carmel will be launched in the coming months.

New medicines to treat diabetes will be added to the government’s formulary list.

The monthly vouchers handed out to coeliacs will increase from €30.

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20:59 Miriam Dalli
20:59

Scicluna has promised to publish a copy of the report.

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20:57 Miriam Dalli
20:56 The Hal Kirkop sporting complex will be upgraded and the Cottonera Sports Complex will be extended.

The Marsa horse-racing track and Marsa sports complex will also be upgraded.

A White Paper will be launched aimed at finding means through which sports organisations can attract further investment in their facilities.

Sports facilities will be built at the Gudja Youth Village.

Miriam Dalli
20:55 If you're interested in downloading a copy of the Budget... Miriam Dalli
20:53 Miriam Dalli
20:50 A request for proposals will be issued for the restoration of the southern part of Fort St. Elmo. Miriam Dalli
20:50 Tax incentives for donations to the arts: People who donate money to the arts will see their taxes slashed by 150% of the value of their donation.

Miriam Dalli
20:49 The allowance for Malta Armed Forces members will be doubled. The AFM will purchase two new helicopters with a combined value of €29 million, as well as new equipment valued at €2.5 million.

Works will begin on relocating the military academy to the Pembroke Barracks, and €0.5 million will be spent on the training of soldiers.

Investment through the EU’s 2014-2020 internal security fund will commence – including €38 million on a new offshore patrol vessel, €7 million on the upgrade of the P 61 vessel, and €1.5 million on the purchase of a robot and van for the Explosive Ordinance Disposal.

The Economic Crimes Unit will be expanded – both through the allocation of police officers and through the employment of non-police professionals.

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20:47 The annual allowance for Gozitan students studying in Malta will increase by €300. Miriam Dalli
20:46 Every Gozitan business that hires an employee on a minimum three-year contract will receive a refund of 20% of the average wage, capped at €5,000 per business. Miriam Dalli
20:46 Opposition comments that the feasibility study is being presented "three years later". Lots of off-mics comments, but PN doesn't look impressed. Miriam Dalli
20:44 Study on a Malta-Gozo tunnel

Technical and geological studies will be commissioned on the creation of a tunnel that will link Malta and Gozo. The proposal for a bridge linking the two islands has been scrapped, as a tunnel potentially financed by the private sector has been deemed more feasible.

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20:42 Miriam Dalli
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20:40 Miriam Dalli
20:39 The Opposition's take on Budget 2016?

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20:38 Relocation of ITS to Smart City: €56 million will be invested in relocating the Institute of Tourism Studies to Smart City. An expression of interest will be issued for the regeneration of the tourism school’s current Pembroke premises.

A St George’s Bay Regeneration Cooperation will be set up to synergise private development works around the popular St. Julian’s bay.

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20:37 A PPP will hand out white certificates to hotels that invest in sustainable energy, certificates that they will then be able to exchange for grants or other fiscal incentives. Miriam Dalli
20:36 Miriam Dalli
20:36 Miriam Dalli
20:36 The government will launch a regeneration project for Marsaxlokk, that will initially focus on converting Triq Xatt is-Sajjieda into a pedestrian zone. Miriam Dalli
20:36 Construction work will commence on the ‘American University of Malta’ campuses at Zonqor and Cospicua. Miriam Dalli
20:35 On Air Malta, Scicluna said the government will keep working to reached the objectives of the restructuring plan agreed to “by the previous administration” with the European Commission.

He says, little action was taken by the previous government while the Labour government had completed a number of main initiatives. Miriam Dalli

20:33 Out-of-court mediation The government will launch initiatives aimed at encouraging people to resolve their disputes through mediation, rather than through the Civil Courts.

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20:31 The government will launch two PPP pilot projects to identify new parking zones, preferably underground, in Mosta and Wied il-Ghajn. Miriam Dalli
20:31 Low-emission vehicles

The government will re-introduce a scheme to encourage people to dispose of vehicles over ten years old and to purchase vehicles with lower emissions. People who scrap an old vehicle and purchase a new electric one will be eligible for a €7,000 grant, people who purchase an electric vehicle without scrapping an old one will be eligible for a €4,000 grant, and people who purchase an electric quadricycle will be eligible for a €2,000 grant.

Owners of hybrid vehicles with carbon dioxide emissions between 50 and 65g/km will be eligible for a €2,000 grant. Owners of plug-in hybrids with CO2 emissions between 1 and 50g/km will be eligible for a €3,000 grant.

Owners of vehicles with CO2 emissions lower than 100g/km will be entitled to a €900 grant, while owners of vehicles with CO2 emissions between 101 and 130g/km will be eligible for a €700 grant.

Hybrid and electric vehicles will be exempted from Valletta’s Controlled Vehicular Access parking scheme.

Businesses that purchase hybrid or electric vehicles will be entitled to a one-off tax return of 50% of the purchase price of the vehicle.

Cars that have clocked up over 160,000km will be obliged to undergo an annual Vehicle Roadworthiness Test.

Motorcycle licenses

License fees for small 125cc motorcycles will be slashed to €10 per years. Registration tax will be removed for electric motorcycles.

Road discipline

Higher fines will be dished out to drink-drivers and people caught using their mobile phones while driving.

New laws will clamp down on people with unregistered foreign cars.

Miriam Dalli
20:24 The bicycle suggestion goes down well with the Opposition - Busuttil's video cycling to work had been mocked by the government. Miriam Dalli
20:22 The government will reintroduce a scheme, whereby people who purchase bicycles or pedelecs will receive a grant of 15.25% on the purchase price of the bicycle. The maximum grant will be increased from €150 to €250. Two new funds will be set up - to encourage businesses to invest in bicycle racks, and to encourage local councils to promote the use of bicycles.

Miriam Dalli
20:20 Whoopsie ... the Speaker caught yawning [clearly not impressed by Scicluna's statement that the public transport is still 'work-in-progress'] Miriam Dalli
20:19 Miriam Dalli
20:19 Traffic: “This is on our agenda”, Scicluna reassures the Speaker as the Opposition boos and Simon Busuttil shakes his head. Transport Malta will launch a public consultation over potential solutions for Malta’s traffic problem.

€13 million on roadworks

Transport Malta will invest €13 million in roadworks, €3 million more than it invested in 2015. Works will commence on Vjal ix-Xarolla in Zurrieq and on Triq Patri Pelagju and Triq Anthony Aquilina in Haz-Zebbug. A tidal system pilot project will be introduced in a number of roads.

Miriam Dalli
20:15 New PPPs – Education Malta, Property Malta, Malta Marittima Three new public-private partnerships will be set up – Education Malta to promote Malta as an educational hub, Property Malta to promote Malta as an island of high-quality property, and Malta Marittima to coordinate government maritime policies.

‘Masterplan’ for Mriehel

A ‘masterplan’ will be announced to regenerate the Mriehel Industrial Estate into a business hub.

Miriam Dalli
20:14 More cheering as Scicluna confirms €75 million income through the IIP: “These funds will be used to improve the lives of Maltese and Gozitans,” Scicluna said to loud clapping. Miriam Dalli
20:13

Investment in Identity Malta

A new system will be set up to improve the research of lands, contracts and other legal documents within the Lands Registry of Identity Malta. Software will be updated and more investment will be poured into the Single-Permit Front Office.

This measure attracts the attention of the Opposition, as some lift up their heads to look at each other and ‘joke’ over the recent happenings involving the entity, including the visa racket.

Miriam Dalli
20:10 Logistics policy A logistics policy will be launched to encourage businesses in the storage and shipping sectors to invest in Malta.

Decision on shop-opening hours

New laws regulating shop opening hours will be announced before the end of the year.

Miriam Dalli
20:06 Less bureaucracy, more financial assistance for start-ups: The bureaucratic procedure faced by start-ups wishing to open up in Malta will be reduced to a one-week average, down from the current three weeks. Malta Enterprise will launch fresh schemes to fund start-ups and companies that attempt to generate funds through crowdfunding.

Tax credits for businesses that employ doctorate holders

Businesses that employ people who hold or are reading for a doctorate in science, IT or engineering will be given a maximum €10,000 tax credit.

Financial assistance to SMEs in manufacturing sector

SMEs that rent out space from the private sector for manufacturing purposes will be granted a maximum €10,000 in financial compensation over a two-year period.

Tax credits for female-controlled companies

Self-employed women and businesses in which women enjoy a majority equity will be granted a maximum €50,000 tax credit.

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20:06 Miriam Dalli
20:03 Miriam Dalli
20:01 Miriam Dalli
19:59 The Opposition is mostly quiet – analysing the figures and the speech – but some murmuring could be heard as Scicluna spoke of the Chinese investment in Enemalta and the government’s work to switch to gas whilst addressing the company’s debts. Miriam Dalli
19:57 Alternative energy incentives: Families can invest in ‘communal’ solar farm, allowing persons who can’t have their own PV panels on their roof.

Rehabilitation of reservoirs

A plan will be set up to rehabilitate water reservoirs across the island, with the aim of making better use of rainwater and reducing flood-related dangers.

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19:56 Miriam Dalli
19:51 Stipends for mature students: Mature students in full-time courses at MCAST or University will receive a stipend.

One-tablet-per-child

Tablets to be launched in October 2016; teachers will meanwhile receive training and technical infrastructure will be strengthened.

Schools

St Paul’s Bay to get a new school while the Mariam Al Battol to receive financial support to construct a new floor. A new residential and community centre for the University of Malta; works for Gozo campus to start soon.

Childcare centres

Three new childcare centres will be opened on Haz-Zebbug, St Julian’s and Floriana.

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19:47 Miriam Dalli
19:46 Miriam Dalli
19:45 Persons with disability and employment: The fine for employers who don’t comply with legislation in connection with disabled persons will double, reaching €1,600.

Regularisation of irregular migrants’ work

A consultation process will be launched for the setting up of an Immigration Work Office. The system will be managed through a PPP and will regularise the employment of irregular migrants.

Miriam Dalli
19:42 Cigarettes price hike: A packet of cigarettes will now cost an average of €0.30 more [couldn’t find a tweet about this one] Miriam Dalli
19:39 €0.50 environmental contribution

Tourists aged 18+ to pay €0.50c per day, capped at €5. This will also include Maltese citizens travelling to Gozo.

Looks like the measure didn’t go down well with a number of MPs from the Opposition benches, while the Opposition leader commented “they [government MPs] didn’t clap” – the government MPs then clapped.

Scicluna says the measure would generate €6 million and would go into the tourism foundation, in PPP with the MHRA. The aim is to use the funds to regenerate main tourist areas.

Miriam Dalli
19:35 Fuel pricesMore cheering in parliament as Minister announces price reduction … while Opposition MPs shake their hands and exclaim “Ooooo!” in unison.

Petrol and diesel prices to decrease as from January 2016. Price of petrol to decrease by 3c while diesel to decrease by 4c. The decrease includes duty raise. LPG prices to remain unchanged until April.

Miriam Dalli
19:32 Vehicle registration tax refund: Government to distribute VAT refund for cars registered during 2005. Miriam Dalli
19:31 First-time buyers

First-time buyers to save up to €5,000 for their first home, backdated to 1 July 2015.

Withholding tax

15% withholding tax on residential rents extended to commercial properties.

Final withholding tax on property in urban conservation areas down to 5%.

Vacant properties

The litigation period of heirs caught in a dispute over the selling of inherited property to be reduced from 10 to 3 years. Therefore, if 51% of the heirs are in agreement, the property can be sold after 3 years.

Property registration tax

Registration tax on property bought in an urban conservation area to be halved (2.5%). Contracts must be finalised between 1 January 2016 and 31 December 2016.

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19:29 Abandoned commercial property

Government to launch consultation on vacant commercial premises and what sanctions should be introduced.

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19:27 Miriam Dalli
19:26 Live-in carer

Government to subsidise the salary of a carer employed to take care of an elderly at home, currently on a waiting list. The subsidy will be equivalent to up to half of the minimum wage.

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19:25 Miriam Dalli
19:21 Pensions

12,000 pensioners on minimum pension to receive an increase of between €4.15 and €8.92 per week, the highest receivers being those aged over 75.

Married couples on minimum pension not affected by the measure to receive a weekly increase of €4.15 per week over and above COLA adjustment.

Additional €300 for elderly aged 75 and over.

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19:19 In-work benefit

Earners with an income of €6,600 up to €15,000 to receive €1,200 for every child. Working couples earning between €10,000 and €20,000 to receive up to €1,000 per child. The same benefit will be given to second parent joining the workforce.

Families with one working person earning between €6,600 and €12,700 to receive up to €150 per child.

Miriam Dalli
19:17 VAT cuts on sports

7% VAT on sports activities including gym memberships, fitness centres, football nurseries. Coaches and professional sportsmen to benefit from a 7.5% income tax rate.

Extra duty carried out by police officers to be taxed separately at a 15% rate.

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19:16 Miriam Dalli
19:14 Income tax cuts

Single declarations up to €9,100, joint declarations up to €12,700, and parent declarations up to €10,500 won’t be taxed.

Single declaration up to €19,5000 to benefit from an annual €90 tax cut; €105 tax cut for a parent with single declaration up to €21,200; €120 tax cut for €28,700 couple’s joint declaration;

Working married couple with single computation can save up to €180; Working married couple each earning up to €21,000 can save up to €210;

Minimum wage earners will not be taxed.

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19:13 Miriam Dalli
19:12 The cost of living adjustment will be at €1.75 per week, granted to all workers, pensioners and those on social benefits. Students’ stipends to increase pro-rata. Miriam Dalli
19:12 Former PN finance minister disagrees with Scicluna.

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19:11 Cost of living adjustment at €1.75

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19:10 Economic growth reached 5.3% in the second quarter of this year, marking a growth rate four times that registered in the Euro area.

Growth, he says, was also registered in manufacturing; full-time work has incrased by almost 13,450 jobs. The proportion of jobs in the public sector is 26.1% of total full-time jobs. The rate under the previous administration was of 26.7%.

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19:06 Miriam Dalli
19:05 Miriam Dalli
19:04 Second priority, he says, is for the country to have the least tax burden while third priority remains attracting investment, especially foreign direct investment. Environment, he says, is the fifth priority (out of eight).

Miriam Dalli
19:01 Scicluna reiterates that the first priority remains strengthening public finances, not spending more than it can. Some murmuring and smirks from the Opposition benches as the finance minister accuses the previous administration of having adopted a “money no problem” policy. Miriam Dalli
18:59 Scicluna recalls the previous budgets, the first focusing on creating a stable environment, the second to encourage hard workers and this year’s was to increase incentives to discourage dependence on social benefits.

The government side claps as Scicluna says the Labour administration was the first to curb social benefits abuse.

He lists the work carried out to encourage more women and persons with disability to join the workforce.

His introduction is setting the tone for tonight’s speech. The government is on track for a 1.6% deficit by end of year.

Miriam Dalli
18:53 Scicluna takes the floor … this is the Labour government’s third budget and the fourth one presented by this administration. Miriam Dalli
18:48 The Finance Minister is in the House. Miriam Dalli
18:37 Parliament suspended pending the arrival of Scicluna and Speaker Anglu Farrugia. Miriam Dalli
18:36 Looks like the Finance Minister is running behind schedule ... President still signing budget documents. Speech was scheduled to start at 6.30pm. Miriam Dalli
18:30 The Prime Minister is opening the Twitter discussion…#chooseyourtag

Miriam Dalli
18:24 PN MP Jason Azzopardi is tweeting about a PQ he raised to home affairs minister Carmelo Abela.

The question revealed that 38 of 53 visas issued to North Korean citizens were issued for employment purposes while 15 others for commercial reasons.

Miriam Dalli
18:12 For those who have already tuned in to follow parliament and you’re wondering why seven minutes have passed and they're still stuck on the first question, well, this is normal.

PN MP Paula Mifsud Bonnici has taken umbrage at the Family Minister's refusal to provide the complete list of consultancies/direct order awarded by his ministry.

Michael Farrugia claims that this was "a waste of time and resources". He insists that he has no problem in providing any specific information but “he won’t waste time and money going through every single file”. Miriam Dalli

18:00 Journalists have already been briefed by the Minister on the key measures of the budget; all we can say so far is that Scicluna is "happy" with the budget. Miriam Dalli
17:53 MPs are slowly gathering in the Chamber for the regular parliamentary questions time while the Finance Minister, along with Speaker Anglu Farrugia, are heading towards the parliament building.

Today also happens to be Edward Scicluna's birthday. Miriam Dalli

17:48 Welcome to our live-blog! Proceedings are expected to start at 6pm. Send us your thoughts on Twitter on #maltabudget Miriam Dalli