Small- and medium-sized enterprises are the backbone of our economy. In tough times, of which we have had many in the last decade, they have proved their resilience. It’s time for them be rewarded for their efforts, resilience and their can-do attitude. Above all, it’s time to encourage them to invest further in Malta’s economy, and create more and better paid jobs.
The Nationalist Party is determined to simplify bureaucracy for businesses and alleviate the financial burden that consumers have to shoulder. More and more employees, and self-employed are going through difficult times as their takehome pay and income continues to be squeezed by a rapid increase in the cost of living.
Thousands of small businesses earn slightly more than €30,000. Recently, Opposition leader Bernard Grech announced that a new PN government would extend this bracket to €60,000, meaning that they would no longer have to collect VAT from their clients to pass it on to the government. This follows several meetings that the Nationalist Party had, and continues to have, with small businesses.
Our proposal is the result of these meetings – we are, as a government-in-waiting, taking up their call. It’s time. They deserve it. Our country would be better off with less bureaucracy and more incentives for small businesses. Excessive bureaucracy, which Labour, then in opposition, pledged to simplify but did not deliver, leads to excessive financial burdens which small businesses cannot afford.
They have a catastrophic impact on their livelihood and causes added financial burdens on consumers who have to pay a high price for excessive bureaucracy.
The Nationalist Party is also calling for a suspension of the government’s seven per cent charge on tourist properties in view of industry’s uncertainty caused by the spread of COVID-19. In addition to this, the Nationalist Party has proposed lowering the VAT rate for hotel services and restaurants to seven from 18 per cent. This is one of our main proposals from among 100 contained in the document ‘2 + 8. A way forward to tourism recovery’.
In Mellieħa, where I serve as PN minority leader, and where I am a general election candidate in the 12th district, I am in constant contact with small businesses and tourism operators. There exists a consensus among them that they need robust government help and incentives if they are to remain financially viable and attractive to local, and foreign consumers. Excessive bureaucracy is stifling their economic activity. They have reached out to the government to curb excessive bureaucracy but found little if any help.
Our country would be better off with less bureaucracy and more incentives for small businesses- Ivan Castillo
Admittedly, the government COVID wage supplement helped both small businesses and tourism operators, but that alone is not enough to see them through, and it certainly does not go a long way in ensuring that their business remains viable in the years to come. Further stimulus and incentives are needed.
The Nationalist Party stepped in to ensure that they have a better tomorrow.
As an opposition party, we could have opted for the easy way out: criticising government’s lack of action to curb bureaucracy, and its inability to curtail the ever-increasing cost of living. Instead, we launched a huge number of proposals hoping that the government picks them up and implements them without further delay. Short of that, we shall implement them as soon as we are in government.
The government needs to step off its high horse and realise that there are thousands of small businesses struggling to make ends meet.
Besides the economic blow caused by the pandemic which, of course, is not the government’s fault, Malta has been greylisted – which is the Labour government’s own doing.
The effects of greylisting could be devastating. Its effect is already being felt, but things will only get worse unless the Robert Abela administration bites the bullet and brings to justice certain people with whom Abela, and his colleagues, rubbed shoulders with since Labour stepped into office in 2013.
Small- and medium-sized businesses, and the people at large, are now expected to pick up the pieces after Labour’s wrongdoing.
The Nationalist Party is determined to take Malta off the grey list within the first few months that we are in government, and we have a clear and precise plan how to boost local businesses, make them feel valued, and encouraged to invest further and earn a better living. It’s time.
Ivan Castillo is president, Solidarjetà Ħaddiema Partit Nazzjonalista, and PN candidate.