MaltaMedia.com

The government announced various incentives in the Budget presented on Monday evening by Finance Minister Edward Scicluna:

* 25% reduction in power tariffs, reduction in water tariffs.

* Cost of cigarette packets up by 30c, slightly higher prices also for beer, alcohol, bunkering and cement.

* Seven-year programme for the refund of VAT paid on the registration of cars between 2004-2008.

* New vehicle scrappage scheme and grant for car conversions to autogas.

* Cost of living increase in salaries and stipends.

* Top rate of income tax reduced to 29% from 32%.

* Parents to have first €9,800 of their income tax-free, up from current €9,300.

* Part-time workers will pay 15% tax on the first €10,000 of their income, up from €7,000.

* Footballers’ income to be taxed at 7.5%

* People aged over 45 unemployed for a minimum of two years will retain part of their unemployment benefit on finding a job.

* First-time property buyers will have duty waived next year.

* New Malta Oil and Gas Corporation to handle oil exploration work.

* Free childcare centres from April in project with the private sector.

* Married women aged over 40 unemployed for five years to get tax benefits when they go out to work.

* Benefits for single parents who follow courses.

* White Papers on shop opening hours, a ban on circus animals, the wardens system and the procurement of medicines.

* Heavy vehicles and horses to be banned form roads during the rush hour.

* More medicines to be made available free of charge.

* Incentives to encourage people to take out private pension.

Prime Minister Joseph Muscat said that the Budget was a surprise for those who thought that the Government would not keep its electoral promises. He said this was a Budget which treated people as humans, a Budget which had started the implementation of Labour’s roadmap.

Opposition leader Simon Busuttil said that no new announcement on job-creation had been made in the Budget. He also said that the Budget would increase taxation by €170 million or €400 per person in Malta. The reduction in the utility rates, costing €25 million, would be more than recouped by this increase in taxation. He added that the Budget failed to address rising unemployment.