Budget will offer fiscal advantages and grants to incentivise investment

Discussions on a possible reduction in VAT are still ongoing

The budget for 2021 will be presented in Parliament on Monday
The budget for 2021 will be presented in Parliament on Monday

The 2021 budget that the government will be presenting on Monday will incentivise investment, offering grants and fiscal advantages to businesses that invest in their growth, BusinessToday has learned.

Sources within the Office of the Prime Minister said that the budget will reward companies and individuals who choose to invest their money.

“People and businesses have money saved up and in bank accounts,” the sources said. “The buget will include fiscal incentives and specific grants to incentivise growth.”

The aim of the budget measures is to create a stimulus for businesses and individuals to invest in new projects.

And discussions on a possible reduction of VAT rates in various sectors are still ongoing, the sources said.

Other measures, such as the vouchers issued earlier this year to help prop up the tourism industry and the retail sector, will also feature in the budget, as the government aims to alleviate the impact of COVID-19 on Maltese businesses.

This confirms what economy minister Silvio Schembri had previously told BusinessToday. Schembri said that the budget would include measures to  continue to assist businesses - and families - to weather the economic fallout forced upon them by coronavirus.

He said that as it had done during the first wave of the coronavirus, the government would continue to assist Maltee businesses as they struggle under a prolonged period of uncertainty due to COVID-19.

“Malta was amongst the first countries in the EU that immediately started to disimburse financial aid to protect businesses and most importantly safeguard jobs.” he said.

Compared to other countries, Malta offered a holistic phased economic plan aimed at mitigating as much as possible the economic impact brought about by the pandemic followed then by a robust regeneration economic plan.

“At all times as a Government we made sure to stand shoulder to shoulder with our businesses. Our stance and approach was even lauded by the recent S&P report which black on white said that if we hadn’t taken such approach the results would have been catastrophic on our economy,” Schembri said. “Having said that discussions pursued with all stakeholders and the upcoming budget will continue to assist families and businesses.”

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