The Prime Minister announcing the economic regeneration measures together with Economy Minister Silvio Schembri and Finance Minister Prof. Edward Scicluna.
In a press conference on 9th June, the Prime Minister Dr. Robert Abela, Minister for Economy, Investment and Small Businesses Silvio Schembri and Finance Minister Prof. Edward Scicluna jointly announced the new economic recovery package as Malta transitions into a COVID-19 exit strategy. Aimed primarily at gearing Malta’s economic wheel, the 900 million euro package rests on providing direct support to local business through various subsidies, grants and incentives that stimulate domestic consumption. A condensed list of the mentioned schemes follows hereunder:
Subsidies, Supplements and Grants
- Extension of the Wage Supplement Scheme together with the addition of students and pensioners now also eligible for the supplement, until the end of September
- Rent Subsidies of up to €2500 for businesses listed under Annex A and B
- 50% Electricity Consumption, capped at €1500 to be subsidised to Annex A and B listed business for the months of July, August and September
- Support for consultancy services within business re-engineering of up to €5000
- Skills Development Schemes for businesses employing 50 people or less
- Assistance to enterprises within digital promotion in new niches capped at €10,000
- Grants of up to €200,000 for modernised construction equipment
- In-work benefit grants of €250 to beneficiary families
- €5 million promotion assistance to businesses launching and promoting products
- €2 million grant to elderly homes in recognition of their COVID-19 effort and dedication
Tax Measures
- Reduction in property transfer tax from 8% to 5% and immovable property acquisition tax reduction from 5% to 1.5% for the first €400,000 on deeds entered into over 9th June till 31st March 2021
- Up to 30% of Microinvest tax credit to be refunded in cash, capped at €2000 for Malta-based enterprises and €2500 for those based in Gozo or led by women
- Extension of Tax Deferral Scheme untill end of August 2020
Refunds
- 33% Refund on port charges and 10% refund on container discharging fees
- Refunding of commercial licenses paid for 2020
- Up to €2000 cash grants on forfeited deposits for postponement of weddings due to COVID-19
- Refund of up to 80% on expenses incurred for participation in international fairs cancelled due to COVID-19.
- Tax refund payable to employees falling under the €60,000 and tax free bracket
Additional Measures
- €100 vouchers for every Maltese and Gozitan citizen over the age of 16 redeemable by end of September 2020. €80 of which is to be spent on any MTA licensed hotels, restaurants and bars. The remaining €20 will be spent on any outlets that had been forced to close by the Superintendent of Public Health
- Fuel price cuts of 7c per litre on diesel and petrol in effect from 15 June 2020
- Underwriting of corporate bonds maturing in 2020 by Malta Development Bank
- €3 million in assistance to NGOs due to COVID-19 financial impact
- Legal Framework to allow SME’s to publish non-reporting environmental, social and good corporate governance considerations to attract investment
- €400 million investment in capital and infrastructural projects spread over the next 8 years