The Malta Budget 2023 was delivered by the Minister of Finance on the 24th of October 2022.
The main highlights of the 2023 Budget as follows:
Cost of Living Allowance (COLA)
The cost-of-living adjustments will be Eur9.90 per week.
Low-income earners that amount to around 80,000 people will receive an average of Eur300 as a grant to reflect the price increase.
COLA for pensioners will be Eur12.50 per week.
The new ceiling for non-taxable income will be Eur14,968.
Fifty-six thousand pensioners will receive cost-of-living bonuses of up to Eur1.50 per week.
Service pensions are to get €200 added to their social security exemption capping. It will now stand at €3,266 a year.
Increases for pensions for widows and widowers will increase up to Eur3.54 per week.
Social security payments for mental health issues
Anyone aged 18-30 who misses up to two years of work due to mental health issues will get those two years of social security payments covered by the state.
An increase of Eur50 will be given to those who do not qualify for a contributory pension. Those with fewer than five years of contributions will receive €450 a year and those between five and ten years will get €550.
This will increase by Eur90 per child.
Carers’ grant increases
Carers’ will now receive €4,500 a year, divided into four payments.
The government will grant a €200 credit each year to parents for every child with a disability. The government will also introduce subsidies for cars equipped for wheelchair users.
First-time buyers will be given €10,000 grant provided their property costs under €500,000 and will be backdated to January 1 of this year.
A scheme intended to help buyers pay for their mortgage deposit is to be broadened to properties valued up to €225,000, up from €175,000.
Last year proposals for buying property in UCA and stamp duty for the first- and second-time buyers will be extended.
Tax Refund Cheques
The tax refund cheques will range from €60 and €140.
There will be an increase from 20% to 40% for the income earned, which will not be taxed for those pensioners still working.
Tax benefits for writers
Tax on book royalties will be reduced to authors from 15% to 7.5%.
Research and Development
A €5 million investment in a ‘Technology Extension Support’ scheme will be launched to rope in private investors.
A start-up initiative
A one-stop shop will be set up to attract more start-ups.
Digitisation of businesses
A scheme entitled ‘Business Enhance’ will offer SMEs €40 million worth of cash grants. Local businesses that invest in digital projects will get up to 50% of their investment back, up to €100,000.
A company set up in Gozo will also get an additional 10% as a tax credit, which can rise to 20% if the investment reduces its carbon footprint.
A rent subsidy offered to local businesses will increase to €50,000 for the first three years of assistance.
For households there will be increase in rent subsidy from €400 to €500 per month for one-bedroom, from €500 to €600 per month for two-bedroom, and from €600 to €700 per month for three-bedroom.
For further information, please contact:
Franco Falzon C.P.A. LL.M (Managing Director)
T: +356 2010 7771 (office)
M: +356 9989 5679 (mobile)
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