Fiscal incentives, accessibility and infrastructure are the focus of proposals for the forthcoming Budget being made by the Gozo Business Chamber.

In a statement, the chamber said these proposals did not diminish from the importance of other areas and, strategically, Gozo’s drive to achieve net carbon neutrality prior to Malta should continue.

Gozo should also be the driving force for the nation in the energy sector, the chamber added.

It said its long-term proposal of having a specialised institute on research which would test and deploy sustainable technologies on the island is “very valid”. The same applied to its proposal for the creation of specific incentives to attract enterprises to the Gozo Innovation Hub in Xewkija, it said.

“The success of specific Gozitan-based enterprises in areas such as information technology shows that the establishment of such enterprises on the island is not impossible.

“While government has invested significantly in the hub, and the second fibre optic link between the two islands (providing the required underlying infrastructure), enterprises need to be attracted to the hub in order to reach its full potential.”

Its proposals, the chamber said, addressed urgent issues related to the impact of certain measures on the environment, the competitiveness of Gozitan-based enterprises, and also long-term measures which will see Gozo progressing in the right direction in a sustainable manner.

“We can only be competitive by being distinctive. Nonetheless it is important that we delineate exactly where we want to achieve this distinctiveness. To this end while economic growth is important this cannot be achieved at all costs or in sectors, which will cause long-term harm to the island,” the chamber said.

Some of the chamber's proposals follow: 

Targeted fiscal incentives

• Align incentives in the property sector to Gozo’s socio-economic and environmental needs;
• Incentivise the finishing of the existing supply of property, whereby the end customer would be able to recoup part of the VAT paid if the property is finished within a two year time frame. If the property finishings are done in such a manner that the property would be rendered more sustainable, the part of the VAT to be recouped would be greater;
• Incentivise the transfer between property co-owners. This can take the form of reduced capital gains tax or stamp duty tax. By providing a financial benefit to co-owners who engage in these transactions, the government encourages the preservation of long-term property relationships and the maintenance of a property's intrinsic qualities. This approach recognises the value of fostering sustainable property management practices and creating incentives for owners to prioritize preservation over short-term financial gains.

Combating problems related to accessibility

• Support the wholesale/import and retail sector through a scheme which would assist them to cover the added transportation costs (inlcuding the cost of labour) to provide their services on the main island of Malta;
• Assist Gozitan artisans to participate in artisan fairs being held in Malta.

Infrastructure

• Set up an ecological green park in Victoria with a multistory underground car park underneath;
• Build a new hospital for Gozo.