The Malta Chamber of SMEs on Wednesday presented a list of 15 proposals it said would promote economic activity, as its members worried about a prolonged economic slump.

It said that although a decision to reopen non-essential shops and businesses was welcome, it had not kickstarted the economy back into gear.

There was very little economic movement and it was clear that economic activity would not be restored on its own, the Chamber noted. 

It is proposing: 

1. The revision of income tax brackets so that income not exceeding €100,000 in profits are taxed up to 20%. 

2. The removal of excise from consumer goods such as shampoos, perfumes and beauty products as well as other products such as tires to reduce their prices and remove the significant bureaucratic burden on the businesses involved, with the exception of alcohol and tobacco products. 

3. The introduction of a special scheme that would tackle the rent problems being faced by shops. It proposed a shared burden for the payment of rents by the landlord, the government and the tenant until business activity improved. 

4. The conversion of the existing MicroInvest tax credits into cash grants to inject liquidity into businesses. 

5. A re-employment subsidy scheme for people who lost their job due to COVID-19 by covering €500 of their wage for one year upon engagement. 

6. Targeted aid for people experiencing problems in affordability through an incentivised spending mechanism through a grant covering up to 50% of costs, capped at €3,000 against VAT receipts, for tangible investments in existing properties. 

7. Revisiting the legal framework to have measures available in times of crisis. 

8. A campaign incentivising local production and purchases to decrease dependence on imports and encourage consumers to support and prioritise local businesses. 

9. Incentives for businesses to continue investing in refining their online presence and adapting their business models to modern technology. 

10. Lowering bank charges and interest rates for businesses and consumers to limit loss of funds through such services at a time when investment and spending should be encouraged. Support to smaller banks to be able to compete would also help the situation, the chamber said. 

11. The setting up an immediate, medium and long term plan for Malta’s tourism strategy. The chamber said it agreed with tourism corridors between Covid-19 safe countries and also with Covid-19 tests for travelling tourists. 

12. Incentives for the green economy to generate sustainable green jobs with a stronger concerted effort towards climate change. 

13. Special incentives for Gozo to generate more local tourism and investment across the islands. 

14. The earmarking of investment opportunities the country needed for businesses to shift and diversify interests, to add value to the Maltese economy. 

15. The need for the country to adapt to living with Covid-19 or future similar situations. This included adaptation to long-term strategies for higher sanitisation and hygiene standards, remote-working, measures to increase productivity levels and sustainable business strategies. 

The chamber said it understood that once the three weeks following the reversal of some measures elapsed, Malta would be able to take stock of developments on the health front and consolidate a plan for the reopening of the economy.

Certain businesses depended entirely on this information to be able to plan their re-entry into the market and get their business going, it said.