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The Minister of Finance has delivered the 2023 Budget Speech. Government forecasts that the Maltese economy will grow by 6% in real terms in 2022, this being driven primarily by domestic demand. Employment figures are also expected to remain buoyant with a 4% increase being forecast, unemployment rates remaining among the lowest in the EU at 3.1%. Inflation is expected to hit 5.7% this year, with heightened inflationary pressures expected in 2023. Government is also forecasting a 5.5% deficit, a slight decline from the 5.8% deficit originally forecast for end 2022.
In line with the Government’s undertaking in this regard, taxes are not being raised. In addition, Government is proposing the introduction of various measures, fiscal, social and otherwise. Please refer to the attached prepared by the Tax Compliance Team at the firm’s associated trust and corporate services group, Fenlex Corporate Services Ltd., for a brief overview of the various measures announced by Government.
For any information as to the impact of these measures on your business going forward, please reach out to Rosanne Bonnici, Tax Partner of the firm.