NO NEW TAXES or tax increases
• COLA increase is €1.75 per week
• One extra day of leave
• 200,000 to get tax refund
• Minimum wage to increase by minimum €3
• €2 weekly pension increase
• White Paper on rent market
• Introduction of 2nd time buyers’ scheme
• All school transport to become free
• Free public transport for youths aged 16-20
• Launch of Roads Agency and roads programme
• SEC exams to become free by 2019
• Construction of four new schools
• Separation of waste to go nationwide
• 2017 surplus to reach 0.5% of GDP
Prime Minister Joseph Muscat yesterday evening hinted at the need for an expedited system for cases dealing with tenants who don’t pay rent.
He was delivering a press conference following the budget speech.
He said that a White Paper the government will release regarding rent is not intended to be a form of rent control. He said that owners who do not register will not be protected at law. “How this will occur will be subject to a public consultation.”
He said that at the same time there are people who do not pay rent, and the court process is lengthy and sometimes unfair. “We need an expedited system, and we will propose certain amendments where such cases could be dealt with in a matter of months.”
The White Paper will introduce a number of safeguards for tenants, such as a minimum term of rent.
He said that the government is adopting a carrot and stick approach to bring landlords evading tax in line.
Muscat said that the budget gives back to families who put their trust in government over the past four years. He said that it is thanks to the government’s strategy, to strengthen the economy, that the government was able to introduce such measures. “We are getting Malta ready for the future.”
The surplus, he said, is going into the peoples’ pockets, while adding that the budget did not include any new taxes.
He went on to mention a number of budgetary measures, including the extra day of leave to be added on for workers next year, a tax refund for everyone earning under €60,000 the continuation of the first-time buyers scheme and the introduction of the second-time buyers scheme, etc.
He spoke about traffic and transport, where all youths between 16 and 20 will be able to use public transport for free next year, and that all children attending independent and Church schools will have free school transport.
He spoke of a new agency focused on roads, adding that the budget for roads more than doubled.
“This budget ensures a second surplus, and aims for a third, so that the weight of the debt will be reduced.”
Finance Minister Edward Scicluna said that every budget presented by this government has been a responsible one, and that government is ensuring not to exceed capacity. “That is the secret to reaching aims and reducing debt.”
“The budget focuses on three challenges – road congestion, property and waste management. These are three challenges that the government shows it understands, knows are not short-term, and commits to taking decisions on as of today.”
Asked about pensions, Muscat said that instead of giving a large raise to a small section of pensioners, the government opted to give a raise to all pensioners.
Asked about Deborah Schembri being given two jobs with the government, the Prime Minister said that Schembri was the person who drafted the planning law and the lands law. “It would be irresponsible of us if we don’t use the capacities of a person who was involved from the top down. It could have been whoever it was.” He said that people involved with the PN were given consultancies. “If they are the best people for the job they will be given the job. Schembri was the best person in this case.”
Asked about new economic sectors the government plans to attract, the Prime Minister mentioned the ongoing work in the health tourism and education tourism sectors, as well as the establishment of the Blockchain laboratory.
Asked about fuel prices, he said that Malta enjoyed low prices over the years, and said that being criticised for not reducing the price, instead of raising it, shows that it is a strong budget.