Malta | Government Budget 2018

Malta | Government Budget 2018

The Maltese Government’s Budget 2018 – 9th October 2017 (evening sitting 6:00PM)

Click image for budget speech 2018

Relevant government budget 2018 measures:

  • Cost of Living Allowance (COLA) – increase of €1.75 per week commencing January 2018 – view 2018 COLA
  • Bonus and weekly allowance to remain fixed as in 2017 – view bonuses for March, June, September and December
  • Malta resident status tax rates for 2018 – view 2018 resident status tax rates
  • Pensioners receiving contributory and noncontributory pensions to receive €2 per week increase in their pensions
  • Service pension shall increase by €200 and shall be deducted from the social security pension
  • Working pensioners aged 62 – 65 who pay their social security contributions will have their pensions revised at age 65
  • Pensioners who have not yet reached the age of 65 and work part-time may opt to pay a social security contribution of 15% on their income rather than the minimum contribution
  • Pensioners aged 75 years and over shall retain the annual €300 grant on the condition that they live in their own home
  • Tax ceiling for pensioners will increase to €13,200
  • All persons earning less than €60,000 per annum will receive a tax refund of between €40 and €68
  • Employee vacation leave in 2018 is to increase by from 192 hours to 200 hours per annum, in compensation of public holidays falling on an employee’s day of rest
  • First-time buyers scheme on residential property to be retained in 2018
  • Second-time buyers scheme on the purchase of the second residential property (on condition that the first residential property is sold) shall be introduced; new owners to receive a refund on the transfer duty paid up to a maximum of €3,000 (€5,000 in case of persons with disability)
  • Free school transport to be introduced for children attending government, church and independent schools for 2018/2019 after study is undertaken
  • Children of ages 16 to 20 will get a free 1 year bus pass
  • MATSEC and SEC exam fees will be halved in 2018 and removed altogether in 2019
  • Fiscal incentives shall be offered to persons who have read a Masters or a Ph.D. as of the academic year 2017/2018, yet this scheme shall not be available for persons who have already benefitted from study related schemes
  • Ex-gratia payments shall be paid to persons who registered their motor vehicles in 2007
  • VAT exempt thresholds to increase from €14,000 to €20,000
  • Fines on tax evasion shall be increased
  • In-Work benefit schemes to be revised upwards
  • Employees working in the Community Worker Scheme shall receive an extra €200 per month
  • Carer allowance shall increase by €8.15 per week
  • Child adoption reimbursement shall reach a maximum of €10,000
  • Orphans allowance shall be paid to all children aged 21 and under irrespective of whether they are in gainful employment or not
  • Foster care allowance to increase from €70 to €100 per week
  • Persons receiving a contributory pension on the demise of their spouse and who still have a dependent child under the age of 23 shall start receiving sickness benefits
  • Alimony received by the spouse and/or children shall not be considered as income for calculations based on means testing
  • Drug and alcohol abusers shall receive an allowance of €40 per week (an increase of €10 per week)
  • In-Work maximum benefit for one working parent with dependent children below the age of 23 earning between €6,600 to €16,500 in 2018 shall be from €450 to €75 per child (2017 – €350 to €52)
  • Private property owners shall be offered a maximum of €25,000 to rehabilitate unused properties on the condition that the property is rented to the Housing Authority for a period of 10 years for social housing purposes
  • Special incentives available to persons in social housing who to move to a care home and who give up their housing accomodation
  • Government shall be issuing a White Paper on affordable housing which will look at regulating the rent legislation including facilitation of eviction procedures and a Deposit Retention Scheme
  • The refund scheme on the VAT paid on the purchase price of a bicycle and electric bicycle shall remain in force
  • Cash refunds shall be granted on the purchase of motorcycles, scooters and electric bicycles up to a maximum of €400
  • Electric bicycles shall be exempted from VAT
  • Rental of bicycles shall attract VAT at 7% rather than the current 18%
  • Electric and hybrid vehicles shall be exempt from road licence for a period of 5 years (certain conditions apply) up to a maximum of €200,000 for businesses
  • Purchase of wheelchair accessible taxis shall benefit from a maximum grant of €10,000
  • MicroInvest tax credit scheme to be increased from €30,000 to €50,000 for businesses based in Malta; tax credit scheme of up to €70,000 for businesses based in Gozo and businesses whose owners are women
  • The MicroInvest tax credit scheme shall be available to businesses with more than 50 employees
  • Gozitan businesses employing persons under contract for a minimum of 3 years shall be offered a grant of 30% of the average pay, up to a maximum of €6,000
  • Offsetting of amounts payable and amounts receivable between businesses and government
  • Online submissions of FSS forms shall be extended to businesses employing 10 employees and over
  • No increase in excise duty on cigarettes, tobacco and alcohol

 

Downloads:
  Government Budget document 2018
  Government Pre-budget document 2018
  Draft Financial Estimates 2018
  Economic Survey 2017

Links:
  Tax Rebate on Pensions explained
  Relevant Government budget measures 2017
  Relevant Government Budget 2017 measures affecting pensioners
  Relevant Government Budget 2017 measures affecting 1st time buyers

2017-10-12-22-08-27

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