ME Chamber urges shift toward tech-driven growth and tax reform<\/p>\n
The Malta Chamber of SMEs has issued a strategic call to action ahead of the 2026 General Election, urging political parties to move away from a labour-heavy economic model reliant on Third Country National recruitment. Instead, the chamber is advocating for a productivity-driven economy bolstered by government-funded “Tech Kit Grants” and incentives for employee wellbeing.<\/p>\n
While a “One-Stop Shop” is proposed to streamline the hiring process for foreign workers, the chamber emphasizes that the current reliance on manual labor is straining Malta’s infrastructure, housing, and public services. Data from the Q1 2026 SME Barometer highlights that employee shortages remain the top concern for 41.8% of businesses, followed by unfair competition at 21.5%.<\/p>\n
To ensure long-term resilience, President Paul Abela has called for a “Think Small First” approach, insisting that all future legislation undergo a mandatory SME test to prevent disproportionate regulatory burdens on micro-enterprises. The chamber expressed concern over electoral promises made without consulting social partners, warning that such pledges could undermine investor confidence and harm the livelihoods of small business owners.<\/p>\n
To level the playing field, the chamber is proposing significant fiscal reforms, including slashing the corporate tax rate from 35% to 25%, offering a 15% deferred tax rate for reinvested profits, and removing audit requirements for micro-businesses with turnovers under €250,000.<\/p>\n
Beyond tax cuts, the chamber suggested a Business Investment Scheme to encourage the public to lend from the €27.4 billion held in resident deposits directly to local SMEs. To protect family-run operations, they are calling for the total removal of succession taxes and document duties on internal business transfers, treating the family unit as a single economic entity.<\/p>\n
Addressing regional disparities, the chamber highlighted that Gozo’s GDP per capita is significantly lower than the national average and proposed extending Mgarr Harbour to help diversify the sister island’s economy. The chamber remains open to discussing these proposals with all stakeholders to ensure Malta remains competitive and sustainable.<\/p>\n