Budget 2016 presented to the House by Finance Minister Edward Scicluna

by Gozo News · October 12, 2015

Finance Minister Prof. Edward Scicluna, presented the Budget 2016 in The House of Representatives this evening.

Some of the main highlights that have been announced in Budget 2016 are as follows:

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. The Minister said that the Government has three priorities he says, to strengthen public finances, reduce tax burden and attract investment.

Economic growth reached 5.3% in the second quarter of this year, marking a growth rate four times that registered in the Euro area, with inflation on track to go below 1.6% by the end of the year.

No tax for minimum wage earners 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

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

VAT to be cut on sports and 7% VAT on sports activities

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

Those on earning an income of €6,600 and 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 who becomes employed.

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

12,000 pensioners on minimum pension to receive an increase of between €4.15 and €8.92 per week, the highest amount going to 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.

One million euros for subsidy fund for carers.

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

Government to distribute VAT refund for cars registered during 2005.

Cigarettes up on average 30 cents per packet – Petrol and diesel to go down in price from January, petrol down 3c diesel by 4c. Gas prices are to stay the same during winter period.

Tourists will pay 50c per night, this is to be used to help in regeneration of tourist areas.

There are to be better conditions for workers with precarious contracts.

Employers who don’t comply with the legislation in connection with disabled persons will see fines double, to €1,600.

Stipend to be paid to mature students in full-time courses at MCAST or University.

Free child care programme to continue; the Government is to open 3 new child care centres.

There will be new regulations announced by the end of the year on shop opening hours.

75 Million euros from Citizen Investment Programme for improving living for Maltese and Gozitans.

€13 million to be invested by Transport Malta in roadworks.

Study on link between Malta and Gozo show that tunnel would be more feasible than a bridge, further studies to be undertaken next year.

Preparatory works ongoing with regards to the green airfeld in Gozo which will further improve the physical accessibility of Gozo.

Allowance for Gozitan students working in Malta to go up by €300.

Employers who take on workers in Gozo on minimum three-year contract will receive refund equivalent to 20% of the average wage.