Malta Budget 2016
- Environmental contribution by tourists
- Excise tax on tobacco and cement
- Reduction in company registration fees
- In-work benefit
- Scrappage scheme
Environmental contribution by tourists
As from 1 April 2016, all tourists aged 18 and over will be required to pay an environmental contribution of €0.50 for every night spent in Malta, capped at a maximum of €5 per visit.
Excise duty on tobacco and cement
Excise duty on cigarettes and tobacco has been increased, resulting in an average increase of €0.30 on every packet of cigarettes. Excise duty on cement has also been increased from €35 to €40 per 1,000 kgs.
Reduction in company registration fees
Registration fees for companies that are incorporated with an authorised share capital of €1,500 or less shall be reduced from €250 to €100.
Currently, where both parents are gainfully occupied and their combined annual income is between €10,000 and €20,000, they are entitled to an ‘in-work benefit’ amounting to a maximum of €1,000 per child per year. In the case of a single parent who earns between €6,600 and €15,000 per year, the ‘in-work benefit’ amounts to a maximum of €1,200 per child per year.
The ‘in-work benefit’ will now be extended to families with dependent children who are younger than 23 years. Where only one of the parents is employed and his/her annual income is between €6,600 and €12,700, the family will be entitled to an ‘in-work benefit’ of a maximum of €150 per child per year.
The Government will introduce a scrappage scheme applicable to cars which are more than ten years old and which are scrapped and replaced with a new motor vehicle.
The benefit is in the form of a €7,000 grant, given to a person who scraps a previously owned car and buys a new electric car. When a new electric car is purchased without an old car being scrapped, the grant will amount to €4,000. A €2,000 grant will be given when a new electric quadricycle is purchased.
Also, various grants ranging from €700 to €3,000 will be granted for the purchase of a number of hybrid vehicles with low emissions.
The annual licence for small motorcycles (less than 125cc) will be reduced to a nominal amount of €10. Furthermore, the tax imposed on the registration of an electric motorcycle will be removed.
With effect from 1 January 2016, unleaded petrol prices will be reduced by €0.03 per litre and diesel prices will be reduced by €0.04 per litre. Both reductions are inclusive of a €0.03 per litre increase in excise duty.