In the past days, I accompanied Minister Tonio Fenech for the presentation of the first MicroINVEST tax credit certificate to RPJ Ltd, a small company in Mġarr.

This company specialises in the sale and related services of the tyre business. Thanks to the MicroINVEST scheme, the company invested heavily in its venture, going into a brand new niche of its market and improving its efficiency and profitability. It purchased new machinery and equipment, and refurbished the shop, as it also invested in a new commercial vehicle that will enable it to reach a wider spread of the market.

RPJ Ltd in fact is a fine example of the perfect combination of the Maltese entrepreneur’s initiative and drive, together with government’s constant and concrete support through schemes and incentives. RPJ Ltd invested €25,000 which thanks to the MicroINVEST scheme, it will now benefit from a €10,000 tax credit certificate – that means €10,000 tax less to be paid by the company, up to 2014.

RPJ Ltd however is just one of 660 micro companies and self-employed who are taking up the endless possibilities of this scheme, and investing in their ventures. €12.3 million have been invested thanks to this scheme by small businesses, which will result in a tax credit of €5.2 million for them. Out of the invested €12 million, €2.3 million have been directly related to the creation of new jobs, as MicroINVEST also allows the declaration of the employment of new skills and employees with the companies as investment, which is eligible for the tax credit. This means that thanks to the MicroINVEST, government has helped directly in the creation of 276 new work places in the micro and self-employed sector.

This scheme is having the desired effect, as several businesses are realising that now is the time to invest and make the quality leap for their business. Many companies are purchasing equipment which is allowing them to venture into new areas of their business, helping them be more efficient and productive. Others are investing in alternative energy-generating equipment helping them save money on their utility bills. Companies are bringing in new skills, developing new niches, introducing new services, and generally being more competitive. This is concretely creating many new jobs. Others are refurbishing their establishments, attracting a new clientele.

Based on this investment, the companies will receive a tax credit of 40% of their investments. Out of the 660 applications received by Malta Enterprise which is administering the scheme, 205 were made by Gozo-based companies.

Thanks to this scheme, government has once again proved its sound economic policy and clear vision for the small business sector in Malta. In the past days we celebrated and started reaping the fruits of a concrete initiative, from which hundreds of self-employed and small business owners are benefiting in tax credits and enhanced liquidity.

Dr Jason Azzopardi is parliamentary secretary in the Finance Ministry