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MDA President Sandro Chetcuti, who headed a delegation of Council members, augured that the Prime Minister and his Government would continue to achieve further progress and success in its endeavours to take the country to the next level. He praised Government’s initiatives that have truly brought the best of times in terms of employment and a booming economy.

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Sunday, September 10th, 2017

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MDA Reaction to 2012 Budget

 PRESS RELEASE

MDA REACTIONS to 2012 budget

 

Appeal to Government to widen incentives on properties in urban schemes

The Malta Developers Association (MDA) notes that in the Budget speech, the Minister of Finance has announced a scheme for the granting of several fiscal incentives in the case of the restoration and rehabilitation of scheduled properties and properties sited within urban centres.

MDA also notes that the Government has partially adopted a suggestion it made on the rental market in the case of taxation of rents received from tenants who qualify for rent subsidies. MDA had asked Government to introduce a system of withholding tax for all income from rents with a less onerous consideration in the case of rents subsidised by the state for social reasons. The small step announced by government will not help the rental market to grow and become stronger.

While it appreciates that the Budget exercise involves a lot of considerations, MDA regrets that the government ignored many of its suggestions aimed at provoking a recovery of the property market, among them the need for a revision of the Capital Gains Tax system on the sale of property as the 12% tax on the sale price is serving as an unjust weight in the present circumstances when property prices are going down as well as the exaggerated valuations carried out by the responsible Government department after contracts are published.

MDA also notes the announced increase on the duty on cement, a step that will continue to increase the cost of construction at a time when the construction industry is facing a downturn.

The announced scheme on urban centres was one of several suggestions the MDA made this year for consideration by Government first in an informal manner during a meeting with the Prime Minister on 29 April and then formally through a letter to the Minister of Finance dated 20 June that was followed by a meeting with the Minister when MDA’s suggestions were discussed with him. This is not an idea that occurred to MDA on the eve of Budget day. 

However, MDA feels that the condition restricting the scheme only in the case of a property being restored or rehabilitated and not if the property is demolished and reconstructed is restrictive and will not lead to the fulfilment of the scheme’s aims since in these urban centres one finds buildings that cannot be adapted for residential or commercial use with the facilities one expects to find nowadays. MDA has always insisted that reconstruction in urban centres should respect the characteristics of the area where the works are carried out and should not result in an increase in development density. If these principles are observed, the restriction in the scheme is not justified.

Apart from this, the maximum €5,000 in the refund on cost or restoration works renders this refund negligible and this measure will surely not serve as an incentive for this work to be carried out.

In the circumstances, MDA appeals to government to widen the scope of the announced scheme by removing the said restriction.

14 November, 2011

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PRESS RELEASE

 

REAZZJONIJIET TAL-MDA GĦAL budget 2012

 

Appell lill-Gvern biex iwessa l-inċentivi

għal propjetajiet fi skemi urbani

Il-Malta Developers Association (MDA) tinnota li fid-diskors tal-Budget il-Ministru tal-Finanzi ħabbar skema li permezz tagħha se jingħataw diversi inċentivi fiskali fil-każ ta’ restawr u rinnovazzjoni ta’ proprjetajiet skedati u dawk f’ċentri urbani.

L-MDA innotat ukoll li l-Gvern adotta wkoll parti minn suġġeriment tagħha dwar is-suq tal-kera fil-każ ta’ tassazzjoni ta’ kirjiet meta l-kerrej jikkwalifika għal sussidju fuq il-kera. L-MDA kienet talbet lill-gvern biex jintroduċi sistema ta’ withholding tax għal dħul mill-kirjiet kollha, b’konsiderazzjoni anqas oneruża fil-każ ta’ kirjiet sussidjati mill-istat gżal raġunijiet soċjali. Il-pass żgħir imħabbar mill-Gvern mhux se jwassal biex is-suq tal-kera jikber u jissaħħaħ.

Filwaqt li tapprezza li l-eżerċizzju tal-Budget jinvolvi ħafna konsiderazzjonijiet, l-MDA jiddispjaċiha illi ġew skartati ħafna suġġerimenti oħra tagħha immirati biex is-suq tal-proprjetà f’Malta jirpilja, fosthom il-bżonn ta’ reviżjoni tas-sistema tal-Capital Gains Tax fuq il-bejgħ tal-proprjetà billi it-taxxa ta’ 12% fuq il-prezz tal-bejgħ qed tkun piż inġust fiċ-ċirkostanzi attwali meta l-prezzijiet tal-proprjetà qed jinżlu kif ukoll il-valutazzjonijiet esagerati li jsiru mid-Dipartiment tal-Gvern responsabbli wara l-publikazzjoni tal-kuntratti.

L-MDA innotat ukoll li tħabbret żieda fid-dazju fuq is-siment, pass li jkompli jgħolli l-prezz tal-kostruzzjoni f’mument meta l-industrija tal-kostruzzjoni qed tiffaċċja nuqqas ta’ xogħol.

L-iskema imhabbra għal centri urbani kienet waħda minn diversi suġġerimenti li l-MDA din is-sena ressqet għal konsiderazzjoni tal-Gvern b’mod informali f’laqgħa mal-Prim Ministru li saret fid-29 ta’ April u b’mod aktar formali permezz ta’ ittra lill-Ministru tal-Finanzi datata 20 ta’ Ġunju segwita minn laqgħa fejn is-suggerimenti tal-MDA kienu diskussi mal-Ministru. Din mhix xi ħaġa li l-MDA ħolmot biha lejliet il-Budget.

Madankollu l-MDA jidrilha illi l-kundizzjoni li tirrestrinġi l-iskema biss meta l-proprjetà tiġi restawrata u rinnovata, u mhux jekk titwaqqa’ biex tinbena mill-ġdid hija waħda restrittiva ħafna, tant illi mhix se twassal biex l-iskop tal-iskema jintlaħaq u dan ghax f’dawn iċ-ċentri urbani jeżisti ħafna bini li diffiċli jkun adatatt għal użu residenzjali jew kummerċjali bil-faċilitajiet li wieħed jistenna llum il-ġurnata. Kif dejjem saħħqet l-MDA, l-bini mill-ġdid f’ċentri urbani dejjem għandu jirrispetta l-karatteristiċi tal-inħawi fejn isir u ma għandux iwassal għal żieda fid-densità tal-izvilupp. Meta dawn il-prinċipji jkunu osservati, r-restrizzjoni fl-iskema mhix ġustifikata.

Barra minn hekk, il-massimu ta’ €5,000 fir-rifużjoni fuq l-ispejjeż ta’ restawr jirrendu din ir-rifuzjoni waħda negliġibbli u żgur li din il-miżura ma hi se sservi għal ebda inċentiv biex isir dan ix-xogħol. 

Fiċ-ċirkostanzi, l-MDA tappella lill-Gvern biex iwessa l-iskema dwar proprjetajiet fiċ-ċentri urbani billi jneħħi r-restrizzjoni imsemmija.

14 ta’ Novembru 2011

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