COVID-19 | €900m Post-COVID Recovery Plan Announced
9 June 2020
The Government has announced a recovery plan for Malta amounting to €900 million. This aims to help the economy recover after the COVID-19 pandemic, which brought several businesses to a standstill.
Benefits for Families
Reduction of fuel price – Petrol and diesel excise tax will decrease by 7c each, coming into force on Monday 15th June.
€100 Retail Vouchers – €100 vouchers will be given out to every person aged over 16. These are to be used in the HORECA industry and other retail outlets that were forcefully closed during the pandemic. €34 million have been allocated to this measure.
Capital Gains Tax Cut – Tax for buyers will be cut from 5% to 1.5%, while the tax for sellers will be cut from 8% to 5% on a capital value of up €400,000. €32 million have been allocated to this measure.
First Time Buyers – First time buyers shall now be allowed to benefit from specific rates even if they already have a property to their name.
- Wedding Expense Refunds – Up to a maximum of €2,000 will be refunded to couples who had to postpone their weddings as a result of the pandemic.
Cash Boost for Low Income Households – Low income families receiving the in-work benefit will be given a one-off grant of €250.
Students and Elderly to Receive Wage Supplements – Although initially denied the wage supplement afforded to other workers, students and pensioners working part-time will be able to claim this benefit until the end of September.
- Tax Refunds – €11.5 million in income tax refunds will be given to approximately 210,000 workers over the coming days.
Benefits for Businesses
Tapering Off of the Wage Supplement – Businesses will be receiving €800 per month per employee until the end of September. The wage supplement will be decreased to €600 for businesses who have started with difficulty.
Electricity Subsidy – €30 million have been allocated to subsidising 50% of the electricity cost, up to €1,500, of businesses that were on Annex A and Annex B.
Rent Subsidy –€50 million have been allocated to subsidising rental obligations, up to €2,500, of businesses that were on Annex A and Annex B.
Tax Deferrals – National insurance, income tax, and maternity contributions will start to be paid from the 1st July.
- Commercial Licenses – Licenses paid to the Malta Tourism Authority and the Commerce department for 2020 will be waived. If anyone has paid their licenses already, they shall be waived next year. €5 million have been allocated to this measure.
Tax Credits to Grants – 30% of credits from Malta Enterprise’s Micro Invest Scheme shall be transformed into grants. A cap of €2,000 for Maltese businesses and €2,500 for Gozitan businesses has been set. €5 million have been allocated to this measure.
Re-modelling Business Fund – A fund of €2.5 million will be set up by the Malta Enterprise which is intended for businesses to re-engineer their business model. A maximum of €5,000 will be given to every eligible business.
- Higher Budget for Skills Scheme – €5 million have been allocated too increase the budget of the Malta Enterprise scheme which helps with the financing of in-house employee training.
- Development Bank Underwriter – Where bond roll-overs are due, peace of mind is afforded to companies as the Malta Development Bank shall act as an underwriter
- Port Charges Refund – 33% of port charges shall be refunded by the Government for 6 months.
- Export Promotion – Trade Malta shall refund 50% of expenses, up to €10,000, incurred by companies for the digital promotion of their products. €400,000 have been allocated to this measure.
- Cancelled International Fairs Refunds – 80% of expenses incurred by companies that were going to attend international fairs which got cancelled because of COVID-10 shall be refunded.
- Export Credit Guarantee – An export credit guarantee of up to €10 million will be provided to companies who wish to export their products in developing markets.
- Modernising Construction Industry – €4 million shall be added to the budget which helps to finance the modernisation of the equipment used by the construction industry.
- Advertising Fund – A fund of €5 million shall be created for Maltese companies which wish to advertise their products locally or abroad.
Want to know which measures you or your business can benefit from?
Our team of specialists can advise you and guide you through any application process. Want to know more? Get in touch today!
+356 2095 8200
