Budget 2023

On the 24^th October 2022, the Minister of Finance introduced the country’s Budget for the year 2023. It is highlighted that the Budget deficit of the country is of €1.142 billion (that is 7.8% GDP) in 2021 and the deficit forecast for 2022 is of €948 billion (that is 5.8% of GDP).

Salient features of the measures announced include:

Tax:

1. Tax refunds between €60 to €140 shall be granted again this year to all taxpayers earning less than €60,000;
2. Tax on royalties derived by authors and co-authors will be reduced from 15% to 7.5%;
3. The reduced rate of 1.5% stamp duty on inter vivos transfer of family business property and securities introduced last year shall be extended for another year;
4. Grants, tax and duty exemptions granted last year shall be extended further:
5. exemption from tax and stamp duty on the €750,000 of the value of the immovable property when purchasing an immovable property that has been built for over 20 years and has been vacant for at least 7 years and which is in an Urban Conservation Area and a typical Maltese built immovable property;
6. a grant of €10,000 given to first time buyers;
7. grant of €12,000 on purchasing a new electric car.
8. Non-taxable pension income threshold will increase in terms of COLA to €14,968;
9. An annual €200 tax credit for parents of children with special needs paying for therapy;.
10. An increase to €300 on tax rebate to parents of children under 16 years that attend sports, arts and cultural activities.

Social Measures:

• Cost of living increase shall amount to €9.90 per week;
• Pensions shall increase by €12.50 per week includes COLA;
• Children’s’ Allowance shall also be increased by €90 per child;
• Free public transport for all Maltese nationals and residents was implemented this month;
• Last year the government increased the grant for parents who have to stop working to care for a disabled child to €500, this was now increased to €4,500 per annum;
• Careers grants are to be increased to €4,500 per annum.

Other Measures

• Schemes will be introduced to encourage businesses in the fields of digitalisation and sustainable projects;
• One-stop-shop for startups called Start in Malta will be launched in 2023 and shall be administered by the Malta Enterprise;
• Investment in electric buses;
• More charging points for electric vehicles shall be installed;
• Measures will be introduced to enhance health services;
• Incentives to enhance sustainable development;
• Encouraging a green economy.