Here are some relevant highlights from the Budget 2020 presented in parliament on Monday 14 October 2019.
Property
> New scheme for people under 40 who cannot cover the 10% deposit to buy a house will be eligible for a government interest-free loan up to maximum of €17,000, paid back over 15 years
> First time buyers scheme will apply on property value of €175,000, an increase from €150,000, and the maximum benefit will increase to €6,500 from €5,000
> Schemes for property purchases in Gozo, urban conservation areas, second time buyers and equity sharing will be retained
> A 15% withholding tax will be introduced on the sale of air space
> Housing benefit will be extended for those who spend more than 25% of their income on rent
> The new rent law will be introduced next year
Economy and finance
> Economy expected to grow in real terms at 4.3%
> The surplus for 2020 is projected at 1.4%
> This will be the fifth consecutive year that public finances will record a surplus
> The country would still register a surplus even without the IIP funds
> The debt-to-GDP ratio in 2020 is slated to drop to 40.4%
> For the third year running, the budget has no tax increases
> Budget will cost more than €5 billion
> Economy will grow to €14 billion
Photo credit: One News
Other areas
Several other measures are being introduced in other areas, including:
> Cost of Living Adjustment increase of €3.49 per week
> Special one-off bonus to make up for milk and bread price increases with single person households getting €15 and other households getting €35
> One day added to leave entitlement
> Tax refund of €40 to €68 will be paid out to anyone who has worked. This effects 200,000 workers and will cost the government €11.5 million
> First 100 hours of overtime for those with basic salary under €200,000 to be taxed at 15%
> Pensioners will receive a total increase of €7 per week in their pensions
> Parents will receive €300 bonus for every child born or adopted
> The grant to cover VAT expense on the purchase of equipment for the disabled will increase from €400 to €1,000
> More medicines will be added onto the free formulary for oncology, heart disease, skin, and rare diseases
> Electric car owners to pay special tariff of 12.98 cents
> Single-use plastic will be banned in phases starting from a ban on importation in 2021 and distribution in 2022
> VAT will be removed on educational and vocational services, including distance learning
