Grants for walking commuters and business tax breaks among SME budget proposals

Reduced corporation tax, more equal access to government public procurement and grants for commuters walking, cycling or carpooling to work are among the proposals for the 2026 budget from the chamber of SMEs.

In a statement Saturday, the chamber said its proposals for next year’s budget were aimed at “making it easier for self-employed, small and medium-sized businesses to operate, grow, and remain competitive”.

The proposals were developed from the results of a quarterly SMEs barometer, which surveyed over 400 respondents, alongside direct member feedback and focus group discussions, the chamber said.

“This comprehensive approach ensures that the proposals truly reflect the day-to-day challenges faced by SMEs and the priorities highlighted”, it said.

The chamber wants to see corporate tax on a business’ first €250,000 profit reduced from a rate of 35% to 25%, a move it said was “in line with the electoral manifesto”.

It also wants to see the MicroInvest scheme – which allows companies to benefit from tax credit certificates for investment costs – updated “to provide stronger backing for self-employed and SMEs”.

A ‘public procurement watchdog’ should be established “to ensure fair and equal access to government public procurement”, while the tendering process for small businesses should be simplified. Enforcement should be strengthened to “tackle unfair competition from undeclared goods”.

The chamber wants to see electricity grid connection fees amended to facilitate “equal access” and new schemes launched to provide large-scale renewable energy storage.

Commuters walking to work, carpooling or cycling should be rewarded with grants and vouchers, while Gozo transport routes should be expanded and “delivery hubs” developed, it said.

The chamber would also like the government to establish a “taskforce on the future of work” focused on digital and green transformation, cutting red tape, incentivising SMEs to conduct a review aimed at sustainable business practices and improving access to EU and green funding.

" The SME Chamber ensured that the proposals are aligned with Malta’s 2050 vision for a safe, resilient, and forward-looking economy”, the chamber said, adding it would officially present its proposals in meetings with the Prime Minister, government and Opposition.