How Budget 2022 will impact Malta’s Economy

Budget 2022 continues in the tradition of previous Labour Government Budgets in that it provides an excellent environment to generate economic growth.

Besides the direct positive impact on domestic demand that will be generated by the substantial social policy measures and the improved income to workers, the Budget includes several very significant measures:

 

  • Companies that invest part of their retained profits will be granted tax credits if this investment is conducted in the next 2 years.
  • Tax credits which could not be used because firms made a loss during the pandemic can be shifted to other companies within the same group of companies rather than be lost.
  • To help lower the impact of transportation costs, the rent subsidy scheme will be extended to cover warehouses.
  • Stamp duty for transfer of family firms will be cut from 5% to 1%.
  • Government will be studying lowering corporate taxation.
  • The Malta Development Bank’s SME Tailored Facility will be extended to cover green and sustainable projects.

Budget 2022 provides an excellent environment to generate economic growth.

  • A Training Fund will be established by Jobsplus to support technical training conducted by firms.
  • Government will introduce an exclusive economic zone which will create new opportunities particularly for renewable energy generation purposes.
  • Malta Enterprise will establish a Blue Med Hub.
  • Investment in the new industrial infrastructure will accelerate.
  • Schemes such as Change to Grow and Smart & Sustainable Investment will provide support to innovative investments.
  • Apprenticeship schemes will be enhanced.
  • Go to Market scheme will commercialise research projects developed locally.
  • Identity Malta will introduce more online services to help reduce bureaucracy for foreign workers.
  • An incubator will be set up for digital games and exports.
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