SME Chamber wants corporate tax cut in Budget 2026

The Malta Chamber of SMEs wants the government to reduce the corporate tax rate from 35% to 25% on the first €250,000 of profit as part of its recommendations for the 2026 Budget.

The proposals, unveiled yesterday, were shaped by the chamber’s quarterly SME Barometer, which gathers feedback from more than 400 businesses, alongside direct input from members and focus group discussions.

The chamber is also recommending an update to the MicroInvest scheme to provide stronger backing for self-employed workers and small businesses.

On governance, the SME Chamber is pushing for the creation of a public procurement watchdog to ensure fair and equal access to government tenders. It also wants simpler tendering processes and stronger enforcement to tackle unfair competition from undeclared goods.

In the energy sector, the proposals include equal access to grid connection fees as well as the introduction of new schemes for large-scale renewable energy storage.

Meanwhile, in terms of digital and environmental change, the chamber called for a dedicated Taskforce on the Future of Work to help SMEs adapt to technological and sustainability challenges.

It is also urging government to cut unnecessary bureaucracy, incentivise firms to carry out ESG reviews, and improve access to EU and green funding streams.

Transport is another area singled out for action. The chamber has proposed grants and vouchers to encourage cleaner commuting practices such as cycling, walking and carpooling for employers and employees alike. It also wants to see Gozo’s transport routes expanded and the development of new delivery hubs.

The organisation said that its recommendations are aligned with Malta’s 2050 vision for a safe, resilient and forward-looking economy. It will now present the proposals in more detail during meetings with the prime minister, government officials, the Opposition and other stakeholders.