Budget Overview, 2017

Professor Edward Scicluna, Minister of Finance, presented the legislature's fifth budget in parliament. He started off by giving an overview of the country’s economic performance over the year followed by a series of measures and initiatives that the Government will be implementing in the forthcoming year.

The salient points and incentives that were proposed in the Budget include the following:

  • Improvements and extensions to current social benefits;
  • The cost of living increase amounting to €1.75 per week;
  • The setting up of the Joint Enforcement Task Force to combat tax evasion;
  • Reduction in the rate of stamp duty payable on the transfer of a business, for  1st time buyers and for persons acquiring property in Gozo
  • Tax credits for employers organizing transport for employees and setting up private pensions
  • Pensioners aged 61 years and over shall be exempt from tax on the first €13,000; and
  • The possibility for group companies to be taxed as one entity;
  • Tax Credits and exemption on investment in companies listed on the Malta Stock Exchange;
  • Tax credits for start ups and operators in the tourism industry;
  • Changes to eco tax and excise taxes will be introduced;
  • Tax refunds for shareholders receiving dividends from companies quoted on the local stock exchange;
  • Reduced tax rate on judicial sale by auction of inherited properties;
  • Registration of rental contracts with the Inland Revenue Department;
  • The use of free public transport for 18 years olds, in the year they turn 18;
  • Reduced social security contribution rate for self employed under the age of 24, who are also full time students;
  • The introduction of a scheme for grants for residents who wish to install photovoltaic panels in their properties 

A more detailed overview of the salient points in the budget 2017 can be downloaded below.

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