Budget 2025: Reduced excise for low-alcohol beer and wine produced in Malta

The government will reduce the excise duty on low-alcohol beer produced by small and independent breweries in Malta with the aim of creating a level playing field on the market.

The change in how excise on beer is calculated will change from degree Plato to ABV%.

Excise duty on small wine producers will also be significantly reduced, in a bid to boost the sector and lead to better returns for farmers.

A Food Safety Authority will be set up in 2025 to establish a single regulator in the area of agriculture and fisheries, while having a responsible authority to ensure food security in case of a crisis.

In order to reduce food waste, a tax incentive will be given to food producers and retailers whose products approaching their expiry date are given for social needs or sold at a reduced price.

A €4 million EU-funded project will strengthen digitalisation in the fisheries and aquaculture sectors. “Having set up the first research agency for fisheries and aquaculture, we will be implementing a number of projects also through international collaborations, launching the process for a new aquaculture centre,” finance minister Clyde Caruana said.

2024 marked the start to a reform on arable lands’ rentals with the setting-up of the agency responsible for agricultural land, registering agricultural leases and removing inheritance tax on leased land.

“We will give incentives to non-commercial farmers who have agricultural land leased to them by the government to enter into arrangements with commercial farmers willing to farm that land. This will be complemented by a pilot project where agricultural land is offered for lease to new entrants or farmers on the concept of fair price and categorisation of farmers. We will also be preparing a national plan for irrigation water management and exploring mechanisms to address climate risks faced by farmers, farmers and fishermen,” Caruana said.