Government suspends tax dues for March, April to help private industry, self-employed – PM

Prime Minister Robert Abela yesterday announced a series of measures aimed at sustaining business and industry at a time when it is being adversely affected by the spread of coronavirus, while insisting that, at this stage, a lockdown advocated by unions would be counter-productive.

Abela revealed that taxes will be suspended for the months of March and April – provisional tax, VAT and social security contributions which businesses are due to pay will be suspended, but it is not yet known till when, with the government saying that it would deal with the matter one step at a time in light of constant developments.

The government will also be speeding up its payments to the private industry, such as VAT refunds. This is to help the financial liquidity of employers and self-employed, he declared.

He appealed once more for calm and noted that the situation is under control. “I appeal for calm and for everyone to do their part. I have full faith in the health authorities, who know what they are doing. We are prepared for any situation. We are working endlessly to safeguard our health, and we are listening to stakeholders, their questions and queries,” said Abela. “The priority is health, but the economy needs to be safeguarded too.”

Abela stated that the decisions were taken after discussions were held with all the stakeholders.

The package, he said, is aimed mostly at sectors that have been hit the hardest by the coronavirus spread, which has led to measures such as the cancellation of flights from several countries and the introduction of mandatory quarantine to all travellers coming to Malta. This includes the tourism, hospitality, entertainment, transport and manufacturing sectors, Abela noted.

Asked about calls from unions for an immediate lockdown, Abela maintained that health experts are, so far, suggesting otherwise. A lockdown would mean house arrest, with people only allowed to leave their homes to buy food or medicines, he said. It would be counterproductive to do it now, he added.

“It is impossible to expect a zero rate of cases. Malta is not different from the rest of the world,” he said. “The secret of the success is to control the peak incidence, limiting as much as possible the spike in the numbers to keep it as low as possible,” the Prime Minister added.

Abela asserted that Malta is prepared for all eventualities, even when the number of confirmed cases go up.

“It is important that people are not selfish. It is known that in 80% of the cases, the symptoms are minimal. But then there are people who are more vulnerable and whose immunity to disease is lower; who might be affected badly by the disease. This is why precautions need to be taken and people need to obey quarantine instructions,” he said.

Economy Minister Silvio Schembri said that companies which have invested in teleworking systems would be eligible for a 45% refund, up to €500, for each worker. He said that the measures would effectively allow businesses to hold onto the equivalent of one-third of each worker’s salary to reinvest. “With these measures, businesses do not need to sack workers,” Schembri stated.

The new measures have been taken after numerous discussions were held with stakeholders, the Chamber of Commerce, SMEs, the Malta Hotels and Restaurants Association and other associations. Abela remarked that the economic package is mainly for businesses in tourism and hospitality, recreational services, transport and industries in manufacturing.

“Whilst our priority is to safeguard our health, the economy needs to be safeguarded too,” said Abela.

Finance Minister Edward Scicluna stated that the government is putting together a ‘mini-budget’ which will readjust financial targets and allocations to suit the situation Malta is currently in. He said that Malta’s finances are at a peak along with GDP growth. Scicluna added that banking associations have promised to do all they can to ensure liquidity for businesses.

“Lockdown will effectively be house arrest”

Prime Minister Abela warned that ordering a complete lockdown will only cause more harm. “I have said it time and time again; I have full faith in our health authorities, who suggest that in this current period of time, we do not need a lockdown.” Abela stressed that a lockdown would mean house arrest, as it would only allow people to leave their homes to buy food or medicine. This, he said, would be counter-productive.

Numerous unions have been calling for a pre-emptive lockdown. Whilst the island has closed all schools, and cancelled public events and gatherings, the unions are stressing that this is not enough to contain the spread of the virus.

Abela asserted that, at this stage, there are no confirmed cases of local transmissions and that the government has been implementing new measures every day to ensure that the virus is contained and controlled.

“I don’t want people to suffer. Lockdown means house arrests, and this will only cause more suffering. I want people to remain calm, and the length of a lockdown might not only last for three weeks.”

Abela stated that the government is in constant discussion with public health experts and if they believe the extreme measure needs to be taken, that is when the government will call for a lockdown. “Lockdown is not a subject to be taken lightly and we are making the best of effort to ensure that we remain in control of the situation.”