Economic Recovery Measures
The Government yesterday announced a strong set of measures that will be implemented in the coming months to boost the recovery of Maltese economic activity.
Revised COVID wage supplement
- Annex A wage supplement will be extended till September for businesses operating in: tourist accommodation, travel agencies, language schools, organisers of mass events and air transport. The supplement will continue to be €800/month for full timers and €500/month for part timers.
- From July till September, personal services and other businesses/self-employed who depend on local consumption will be fall to annex B supplement i.e. €160/month for full timers and €100/month for part timers.
- From July till September other sectors who currently are receiving the full supplement will be shifted to a reduced supplement of €600/month for full timers and €375 for part timers.
- The supplement will now be available to pensioners and students who are employed in eligible sectors. Such measure is effective between July and September.
Rent & Electricity Refunds
- Businesses that fall under the wage supplement annex A & annex B will receive a cash grant up to €2,500 for the rental cost between July-September.
- The sectors listed in wage supplement annex A & annex B will also receive a 50% subsidy on their electricity bill during July-September. The subsidy is limited to €1,500 per applicant.
- The current scheme will be extended till September. The deferred taxes repayments will then be required to be settled over a period of 12 months. As from July, dues in respect of FSS and NI withheld from wages needs to be settled on time.
Property & construction
- Reduction of stamp duty to 1.5% on property purchases. This scheme is applicable for property value up to €400,000 and contracts should be signed up till 31 March 2021.
- Final withholding tax will be reduced from 8% to 5% on sale of property (value up to €400,000) for all contracts signed by 31 March 2021.
- First time Buyers scheme will be modified to ease the eligibility.
- A grant up to €200,000 for businesses in the construction industry to upgrade their machinery and equipment.
Other assistance to businesses
- MTA and trade licences is being waived for this year to businesses that were mostly impacted by COVID. Hotels, restaurants, bars, hawkers, and shop owners should be those who will benefit most from this measure.
- 30% up to €2,000 of any available Microinvest tax credit can be converted to a cash grant. The maximum amount will increase to €2,500 for businesses operating in Gozo or run by female entrepreneurs.
- Grant up to €5,000 for business re-engineering consultancy.
- Refund of 33% of port charges and 10% in container discharge fees incurred between June and December 2020 on import and export of goods. The aid does not include transhipment activities.
- An allocation of €10 million for an Export credit guarantee scheme, in order to encourage investment towards exports to new markets like Africa, the Middle East and Latin America.
- Assistance of 50% (up to €10,000) for costs incurred by businesses to invest in promotional campaigns aimed for the foreign markets.
- Up to 80% refund of the costs incurred by businesses participating in international fairs which have been cancelled due to COVID.
- Malta Enterprise will allocate €5 million to the Skills Development Scheme for businesses employing less than 50 employees.
- Assistance to nursing homes with an allocation of €2 million.
- When there is roll-over of bonds, the Malta Investment Bank will guarantee to underwrite the balance of any unsubscribed bonds.
- The government will invest €400 million to improve the industrial infrastructure of the country. The investment will include new and modern factories and manufacturing spaces and complements the long-term vision to attract more foreign investment.
Assistance to Households
- The price of petrol and diesel will decrease by 7 cents per litre as from 15 June.
- Residents in Malta & Gozo over 16 years of age will receive worth of €100 vouchers. €80 can be redeemed in services from hotels, restaurants, and bars while €20 can be used in shops that were closed in COVID period.
- To encourage parents to go to work, the maximum in-work benefit will increase to €1,400 per child (both parents works) or €630 (one parent works or single parent). A one-off supplementary benefit of €250 will be given to each family that already benefits from this scheme.
- To relief the burden to couples who had to postpone their wedding because of COVID, the government will refund up to €2,000 on additional expenses incurred.
The implementation guidelines and legislation of most of the measures will be issued at a later stage. 3a Malta will be following closely any developments and will provide further updates.