June 10, 2020
With Covid-19 behind, Malta is now looking at stimulating the economy to bring it back to December 2019 levels. A massive boost has been announced by the Government yesterday evening launching a myriad of incentives, tax cuts, tax refunds and grants.
The most significant is the one time property purchase tax of 5%, which has been reduced to 1.5%. But this is not the only substantial incentive: fuel prices have gone down, vouchers are being handed out to be used in restaurants and hotel breaks, bank interest and businesses’ rents are being subsidized, wage subsidies are being extended till September and more generous benefits are being handed out to workers.
Meanwhile, utility prices for businesses have been slashed by 50% for the months of July, August and September.
During the press conference, Prime Minister Robert Abela stated: “Every day counts. We are announcing these measures now to instill confidence in the future. People know where they stand, everybody is getting something”.
With this package Malta is expected to record a deficit of 7% , which will financed by local borrowing.
“Since the start of the year, people and commercial entities have amassed €900 million more in bank deposits. This money is idle in the banks, earning no interest. We want to entice people to invest that money in government bonds, which will go to finance the recovery” the Government said in a statement.
Experts say that this recovery plan is expected to springboard Malta into a full economic recovery by summer of 2021.