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Maltese Companies To Receive Energy Efficiency Investment Subsidies, by Lorys Charalambous, Tax-News.com, Cyprus
Tuesday, February 10, 2009

Maltese Finance Minister Tonio Fenech has this week announced the launch of a EUR10m fund to subsidise enterprises in the purchase of energy efficient equipment. The scheme is co-financed by the EU European Regional and Development Fund.

Fenech explained that these funds, available to all enterprises, including retailers and the tourism industry, are meant primarily to improve energy efficiency, an important element in ensuring environmental protection as well as a key component in business sustainability.

Through this scheme, two types of investments will be supported: investment in energy saving measures, such as the installation of intelligent lighting systems, solar heating, thermal insulation, building management systems and energy saving lighting; and investments in alternative energy sources, such as the installation of energy generating solutions based on the use of solar power and wind power. The subsidies will be allocated by Malta Enterprise.

Projects benefiting from this incentive should be completed within eighteen months and have a minimum project value of EUR25,000.

Minister Fenech also mentioned the recently launched Energy Audits through which enterprises can identify effective ways of reducing costs through reducing energy consumption. Likewise this initiative can be accessed by contacting Malta Enterprise.

This week’s subsidies correlate with Malta’s ethos and budget, whereby companies who enforce eco-friendly policies shoulder less tax burden. Prime Minister Lawrence Gonzi in his 2009 budget introduced several new tax measures to encourage the launch of environmental projects and improve energy-efficiency, all reinforcing Malta as an ‘eco-island’. Taxes contained within his November budget included tax on traditional lightbulbs, a comprehensive taxation system for cars, with more economical cars bearing less tax, and a significant tax on plastic bags.

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