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Malta BudgetGuide

Forecast / target

Hypothetical energy-subsidy removal stress test

The speech reports a simulation of removing energy subsidies, not an announced policy or expected outcome.

Budget 2027Announced

Amount

Hypothetical scenario—not a prediction

Previous

No direct comparator

Effective from

Awaiting guidance

What it means

Scenario assumptions: electricity +70%, fuel +65%. Relative to baseline, real GDP is 0.9% lower in year one and 2.2% lower in year three; real household disposable income is 3.2% and 6.4% lower respectively; first-year CPI is 4.9% higher; unemployment is about 2,600 higher by year three. Scenario COLA is €18.05/week, not the announced €6.41. These values must never replace published forecasts or actual calculator rules.

Affects: Residents, Companies & SMEs, Economy.

Sources

  • Diskors tal-Budget 2027, Ministry for Finance (Malta), 2026-10-26. Printed p. 16 (PDF p. 20)

Related measures

Budget 2027Rules pendingBudget measure

Additional COLA support payments 2027

The additional COLA mechanism runs again, paying €200 to €1,500 a year depending on disposable income and household size. Over 100,000 households are expected to benefit.

€200 to €1,500 per year

Speech printed p. 22 · PDF p. 26

Budget 2027AnnouncedBudget measure

Free public transport eligibility 2027

From 2027 free public transport is restricted to Maltese and Gozitan residents, resident EU nationals and long-term residents.

Speech printed p. 30 · PDF p. 34

Budget 2027Rules pendingProposed reform

Small company 25% tax on retained profit

A 25% tax rate on retained or reinvested profit is announced for qualifying companies with turnover not above €1 million, compared with 35% on distributed profit.

25% on retained profit

Proposed rules; implementation not confirmed.

Speech printed p. 34 · PDF p. 38