MaltaMedia.com

In his budget speech the Finance Minister Tonio Fenech noted that the Maltese economy is expected to grow by 1.2% this year. On the contrary the EU economy is expected to shrink by 0.4%.

During 2012, a number of economic sectors experienced a growth in value added, including financial services, ICT, professional, technical and scientific services, together with arts, entertainment and leisure.

Malta is experiencing very positive results in tourism while a number of factories have announced expansions. This is being translated into the creation of new jobs. At 6.5%, malta has the fifth lowest unemployment rate in Europe, the Minister said.

The main points of the Budget Speech are:

Cost of Living Adjustement of €4.08 per week
The top rate of income tax will, as from next year, go down from 35% to 32% for those on a single computation earning between €19,501 and €60,000; those on a joint computation earning between €28,701 and €60,000 and those on a parents’ computation earning between €21,201 and €60,000.
Children’s allowance increases from €350 to €450, and to €527 for families dependent on a minimum wage
Support to Enemalta (€25 m) is provided again for 2013 to ensure tariff stability
Extension of Solar Water Heater rebate (40% up to max. €400 )
15.25% rebate up to €1,000 on double glazing and roof insulation
Increase in excise duty on fuel consumption of 2c per litre on petrol and diesel and 5 euro per tonne on cement
Euro 5 car registration tax is reduced by a maximum of 30%
Euro 4 car registration tax is increased by an average of 10%
Tax rate on commercial vehicles is reduced by 12.5% to incentive purchase of new cars
500 euro scrappage scheme for new private or commercial cars on scrappage of older vehicle
Removal of registration tax on motorcycles with 250cc engine and 25% reduction on other engine capacities
Removal of registration tax on classic cars aged 50 years and over
Classic care definition is lowered from 35 to 30 years.
Removal of annual circulation licence for classic cars. Replaced by administrative fee of €8
Rebate scheme of €200 for conversion of cars to autogas
Education budget is increased by €12 million to €390.7 million
Construction of new Secondary schools in Ħal Kirkop, Raħal Ġdid, Sta Venera and Pembroke
Continuation of works on 20,600 square metre site of the former Pace Grasso football ground in Paola to be converted in a Secondary school, resource centre for persons with a disability, a health centre and a parking
A further increase in health expenditure of €38 million, to a total of €465 million
Increase in 6% on excise duty on cigarettes and 8% on tobacco
Expenditure on social benefits increases to €787 million, an increase of €37 million
All social benefits will increase by the COLA amount, ensuring that around 112,000 persons do not lose out on any benefits
€300 allowance announced last year for persons aged 80+ is extended to those aged 78+ and eventually to those aged 75+. 1.5 million euro vote per year
Full COLA increase to the elderly

Liquigas also announced that the price of gas is to rise with the 12kg cylinder, which is the mostly widely used, costing €20.60, an increase of €1.00 since the last increase, also of €1.00, in September.