The Gozo Business Chamber in its reaction to Budget 2026, said that it “believes that while this Budget will undoubtedly have a strong positive economic and social impact, Gozo must now move toward regional structures that can determine spending priorities and strategic projects independently.”
It also stressed that “economically, there must be an active effort to establish value-added niches in Gozo, to ensure that the level of development that is being spurred at a national level also takes place in Gozo.”
It noted with “satisfaction” that this year’s Budget is a socially oriented one, but which also continues to incentivise businesses to move forward.
The GBC added that social measures, such as income tax brackets that ease the burden on families, are welcome initiatives that support a better quality of life. “A strong economy must go hand in hand with the well-being of society.”
The Chamber also noted the “measured approach” being taken by the Government regarding the private sector’s contribution to occupational pensions, as well as maternity, paternity, and parental leave. The Chamber said it believes that this approach fosters a “comprehensive discussion, where decisions on how to introduce new measures are made without placing excessive burdens on the private sector or increasing disparities with the public sector.”
In its reaction, The Gozo Business Chamber highlighted the following points:
The Start-Up Framework
• The Gozo Business Chamber welcomes the emphasis on start-ups, particularly in high value-added sectors. However, the Chamber calls for a clear commitment to ensure that this start-up framework is also implemented in Gozo, particularly in fields such as med- tech, clean tech, and green tech. Gozo needs a fully developed start-up ecosystem, centred around the Gozo Innovation Hub, which is currently not being utilised to its full potential. Given Gozo’s current lack of economic diversification, this is an essential step to establish value-added niches on the island.
• The Chamber also welcomes the Government’s commitment to make the opening of a bank account a legal right. This is a significant development, considering past cases where companies – especially those which were foreign-owned – faced major difficulties in opening bank accounts.
• The legal amendments being proposed to allow young people aged 16 to 18 to become entrepreneurs in a regulated manner are also an important step forward. Family Businesses and the Self-Employed
• The Chamber also welcomes the extension of succession benefit schemes for family businesses.
• The Chamber notes that self-employed individuals will now also be entitled to Bereavement Leave and Miscarriage Leave. This is an important step toward greater equity in a sector that is crucial for Malta’s economy.
• The new Micro Invest mechanism, which will offer support of up to 80% (max €960/year) for employees who have worked for more than four years with the same company in Gozo, is another positive step for Gozitan businesses. The same applies for the new thresholds for Gozitan businesses which will now cover a maximum expenditure of up to € 85,000.
Tourism
• As tourism continues to grow, the increase in the eco-contribution from €0.50 to €1.50 per night is an important measure to help strengthen infrastructure in the tourism sector. However, the Chamber believes that the funds generated in Gozo should be ring-fenced, so they are spent on tourism-related projects on the island itself.
Health Sector
• The Chamber positively notes the investment in equipment and care at the Gozo General Hospital, and the Government’s clear commitment to the implementation of the Health Care Campus Masterplan. The Chamber reiterates that a new hospital is essential both for the Gozitan community and for the Queen Mary Malta University Campus in Gozo.
Public Transport
• The Chamber welcomes the measure that will see Gozo’s entire bus fleet electrified by 2026. It believes this should be accompanied by a more frequent and better-structured service that reaches more localities across Gozo in a strategic manner.
Transport and Maritime Infrastructure in Gozo
• The Chamber welcomes the planned extension of the fast ferry service to include Ta’ Xbiex and Bugibba. However, it also calls for a long-term strategic plan for Mgarr Harbour and the development of a second port in Gozo.
• In this regard, the Chamber welcomes the establishment of a task force to analyse how Mgarr Harbour can be better utilised. The Chamber also notes the clear commitment for investment in both Cirkewwa and Mgarr terminals.
• The Chamber maintains that no meaningful improvements can occur without strong infrastructural and strategic investment in the Port of Mgarr, which has become too small for the island’s needs. Therefore, the land reclamation being considered for the Freeport area in Malta should also be considered for Gozo.
• The Chamber also welcomes the investment plan for roads in Gozo and the commitment to initiate works on the rural airfield. The Chamber believes that this project has significant potential to create new economic niches on the island.
• The Victoria Park in Rabat, is also a much-needed project which needs significant attention. Adequate parking in Rabat has been a longstanding concern which needs to be addressed.
Education
• The Chamber welcomes the measure to provide a €280 monthly allowance to Gozitan students pursuing post-secondary or tertiary education in Malta, as a continued incentive to support their educational journey.
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