SME Chamber pushes 25% corporate tax rate and cross-party taskforce in 40-point Budget 2027 wishlist

The Malta Chamber of SMEs has handed Prime Minister Robert Abela and Finance Minister Clyde Caruana a 40-proposal document for Budget 2027, with a corporate tax cut and a cross-party taskforce at the centre of its demands.

The overarching message is that Malta must shift from a growth model built on more people, more journeys and more resources to one that extracts more value from every hour worked, every euro invested and every unit of energy and land used.

The Chamber wants a cross-party taskforce on long-term priorities to depoliticise difficult decisions. It argues that without such a mechanism, fear of electoral backlash will paralyse necessary reforms, allowing government and opposition to confront hard choices without any party gaining an advantage.

The proposals are grouped into five pillars. On tax, the Chamber calls for the corporate tax rate to be reduced to 25% and a 15% deferred rate on retained and reinvested SME profits, alongside measures that reward businesses that stay compliant and invest in growth, technology and their workforce.

On governance, it demands stronger enforcement against unfair competition, greater SME access to public procurement, independent procurement oversight and regulation that reflects the size and capacity of smaller businesses.

Productivity measures include a mandatory SME Test, a regulatory stocktake, a digital Business Account under the Once-Only principle, a one-stop shop for TCN recruitment and a Productivity Tech Kit to help SMEs digitalise and automate.

The energy pillar proposes turning audits into investment, supporting commercial energy storage, improving grid access, establishing a renewable-energy one-stop shop and reintroducing an ESG Grant.

Transport proposals target the productivity cost of congestion through smarter mobility incentives, off-peak vehicle registration, more efficient waste collection and stronger freight connectivity for Gozo.

The Chamber will present the same package to the opposition in the coming weeks. For Maltese businesses, the outcome of these proposals will determine whether Budget 2027 eases cost pressures or deepens them.