Budget 2023 is out of the red box. Some measures are common sense such as incentives for first-time buyers and properties in urban conservation areas.

However, the scheme for the reduction of stamp duty in Gozo from the standard five per cent to two per cent  of a property’s value payable by buyers, which was originally introduced in 2017 for the duration of one year, has been again extended. This is one of the tax measures that distorts the market and incentivises the uglification of Gozo. It must be scrapped.

Gozo has come a long way in terms of development and improved living conditions for residents. It is true that average disposable income is still only 85 per cent of the Malta average but the lower level of economic intensity has protected Gozo’s identity.

Malta is a high-density conurbation where towns, villages and suburbs have largely merged in many part of the main island. While Malta has turned into an extended urban area with all the issues associated with it, Gozo has remained an island made up of villages. Villages surrounded by a good quality natural environment: that is the simple basis of Gozo’s identity, heritage and culture.

Gozo is on the verge of losing its distinctive character if we do not change course. The survey conducted by the Gozo Development Regional Authority (GDRA) this year shows that more than 80 per cent of people are very happy to live in Gozo with the main positive aspects being tranquillity (48 per cent) and natural environment (20 per cent) but “excessive development” was cited by 56 per cent of respondents as the main negative aspect.

In a 2022 survey by the Gozo Tourism Association, all of the establishments surveyed stated that Gozo is losing its charm and characteristics as a result of overdevelopment. Last year, Gozo’s mayors called on ministers to scrap planning rules that allow excessive height developments. Gozo Minister Clint Camilleri acknowledged in September the need to rethink some of the planning rules for the island to tackle design issues.

Everyone agrees Gozo is threatened by overdevelopment and poor quality projects- Stéphane Croce

Everyone seems to agree the island is threatened by overdevelopment and poor quality projects. In fact, we are in the unique situation where we have a large consensus among Gozitans about this.

In an outlook note published in September, the GRDA made a 2023 pre-budget recommendation to scrap the scheme for reduced two per cent stamp duty in Gozo because of the “undesirable outcome from a society point of view” and “doubtful value for money”.

These ‘taxpayers funded subsidies’ are creating an artificial demand for low cost properties that Gozo probably would not need to build in the first place. The GRDA pre-budget recommendation was therefore highly sensible but was ignored by the government.

Din l-Art Ħelwa supports the cancellation of the scheme and wonders why the government should wait another year to remove this unnecessary Gozo specific tax scheme.

Where we need a Gozo specific approach is in terms of planning rules or we will repeat the same mistakes made in Malta.

Gozo is an island of villages and nature. The general vision of its residents is to keep it this way. This is not just a nostalgic position but also a solid economic one since the tourism industry, a significant mainstay of the local economy, requires this characteristic of Gozo.

So, it needs planning rules fit for purpose, starting with abolishing the DC15 policy in Gozo. Much damage has already been done by this policy, which turns our villages into sprawling clusters of faceless apartment blocks. Various stakeholders have asked the government to withdraw DC15 but to no avail.

Din l-Art Ħelwa, together with local NGOs Għawdix and Wirt Għawdex, have decided to legally challenge the Planning Authority document DC15 in court, which allows the development of more floors than permitted in the local plans. We contend that the policy is illegal and must be struck down. One way or the other, we must rid Gozo of DC15.

Moving forward, we will need to define specific Gozo rules for planning and building guidelines. Simple changes have been already explored and discussed in the past, such as designating all of Gozo as a design priority area. This change of designation would ensure that facades and finishes of both residential and commercial properties across the island would have to abide by same regulations as in urban conservation areas.

Some quick wins can be achieved if all Gozitans (from authorities, mayors, NGOs to tourism actors and local developers) agree on a set of sensible specific rules for Gozo and speak with one voice to get the Maltese government and the authorities to finally implement them.

At the end of the day, it is the only way to keep Gozo’s unique identity: an island of villages.  And that’s the bedrock of the local residents’ well-being and of the marketing model of the Gozo tourism and construction industries.

Stéphane Croce is a council member of Din L-Art Ħelwa.