Following the release of Budget 2025, the Malta Chamber of SMEs voiced disappointment, describing it as a “Budget of continuity” that largely overlooks critical needs of the business sector. While it welcomed the extension of energy subsidies essential for business sustainability and applauded the new work-life balance measures for the self-employed, the Chamber expressed frustration that its specific proposals were largely ignored, with minimal reference to business support in the budget document.
The Chamber praised the expansion of the tax bracket for lower-income earners but emphasized the unmet promise of reducing the business tax rate from 35% to 25%, as pledged in the electoral manifesto. This tax rate gap, it argues, places Maltese businesses at a disadvantage compared to foreign-owned enterprises that enjoy an effective tax rate as low as 5%.
While acknowledging the continued subsidy for electric vehicles, the Chamber expressed concern over the subsidy reduction from €11,000 to €8,000, stating that Malta needs stronger incentives to promote green transportation.
Beyond these measures, the Chamber noted several pressing challenges facing businesses that were barely addressed. Critical employment issues like the job-skill mismatch, recruitment hurdles, excessive bureaucracy, and infrastructure inadequacies were cited as significant productivity constraints, requiring urgent, comprehensive solutions.
The Chamber reiterated its call for more robust policies to tackle these challenges, stressing that strategic investment in these areas is crucial to sustain business growth and economic resilience.
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