Chamber of SMEs says budget extends safety net for businesses

The Malta Chamber of SMEs said it is pleased to see a number of its Budget proposals taken up and welcomes the extension of the most important COVID Support measures.

The SME Chamber welcomes the extension of the wage supplement, as proposed, till end of March. It is apparent also that a fairer system will be adopted that ensures that all enterprises requiring help will be receiving this assistance. A positive development will also be the possibility to integrate new employees on this assistance, something that was causing great practical difficulties to business owners.

Another positive is the fresh round of vouchers that is announced to be released. The Malta Chamber of SMEs appreciates the fairer distribution of the allocation of the vouchers between sectors, which is another proposal that came from the SME Chamber and was taken up.

This measure will be essential to re-energise consumption with immediate effect to guarantee the best outcome for the fast approaching most important business period for many sectors.

Tax incentives and the lowering of VAT rates would have boosted businesses’ ability to invest. A step that many other EU countries have taken, which is absent in Malta’s 2020 Budget. On the other hand, the SME Chamber positively notes the widening of the bracket for tax exempt businesses from Euro 20,000 to Euro 30,000.

Another necessary pillar for investment is the Banks. The Malta Chamber of SMEs believes that the Banks are still not delivering in being the protagonists they should be in the current situation. The banks must pull up their sleeves and see how they can ensure business survival and be catalysts for investment. All too often business owners are reporting failures in terms of banking support for SMEs.