ACT No. II of 2005 AN ACT to implement various budget measures and other administrative measures.

I assent.

(L.S.)

E DWARD F ENECH A DAMI

President

1st March, 2005

ACT No. II of 2005

AN ACT to implement various budget measures and other

administrative measures.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

The short title of this Act is the Budget Measures Short title.

Implementation Act, 2005.

PART I

MANUFACTURED TOBACCO

Description of excise goods

Rate of Excise Duty

Cigarettes

The provisions of this Part shall be deemed to have come Coming into

force of this

into effect on the 1st January, 2005.

Part.

ENERGY PRODUCTS

Description of excise goods

Rate of Excise Duty

Leaded petrol falling within CN Codes 2710.11.31,

2710.11.51 and 2710.11.59.

Lm 154 per 1000 litres

Unleaded petrol falling within CN Codes 2710.11.41,

2710.11.45 and 2710.11.49.

Lm 133 per 1000 litres

Gas oil falling within CN Codes 2710.19.41 to

2710.19.49.

Lm 105.40 per 1000 litres

If used in the following maritime commercial activities: Lm 61 per 1000 litres

- Bunkering operations

- Conveyance of passengers and goods between shore

and ocean-going vessels

- Dredging operations

- Harbour Cruises

- Inland Navigation between Malta and Gozo by ves-

sels of a tonnage less than 3,500 tons

- Sea farming activities

- Tugging activities

If used in the following maritime commercial activity

- Inland Navigation between Malta and Gozo by ves-

sels of a tonnage of 3,500 tons or more

Lm 10.40 per 1000 litres

If used for electric power generation

If used for fishing purposes as laid down by Depart-

ment of Fisheries

If used by private pleasure seacraft for outbound voy-

ages

Biodiesel (a mixture of biomass and gas oil)

Lm 105.40 per 1000 litres

Heavy fuel oil falling within CN Codes 2710.19.61 to

2710.19.69.

Lm 6 per 1000 Kgs

If used for electric power generation

Natural gas falling within CN Codes 2711.11.00 and

2711.21.00

If used as a motor fuel

If used for heating purposes

Lm 0.06 per 1 gigajoule,

gross calorific value

Liquid petroleum gas falling within CN Codes 2711.12

to 2711.13.

Lm 15 per 1000 Kgs

Methane falling within CN Codes 2711.29.00.

Lm 15 per 1000 Kgs

Kerosene falling within CN Codes 2710.19.21 and

2710.19.25

Lm 105.40 per 1000 litres

Lm 31 per 1000 litres

If used for air navigation between Malta and Gozo

If used by private pleasure aircraft for outbound voy-

ages

Electricity falling under CN Code 2716

Lm 0.10 per MWh

Coal and Coke falling within CN Codes 2701, 2702 and Lm 0.06 per 1 gigajoule,

gross calorific value

The term 'energy products' shall cover

(a) products falling within CN Codes 1507 to 1518,

if these are intended for use as heating fuel or

motor fuel;

(b) products falling within CN Codes 2701, 2702

and 2704 to 2715;

(c) products falling within CN Codes 2901 and

2902;

(d) products falling within CN Code 2905.11.00,

which are not of synthetic origin, if these are

intended for use as heating fuel or motor fuel;

(e) products falling within CN Code 3403;

(f) products falling within CN Code 3811;

(g) products falling within CN Code 3817;

(h) products falling within CN Code 3824.90.99 if

these are intended for use as heating fuel or

motor fuel;

(i) electricity falling within CN Code 2716.

Energy products other than those for which a level of duty

is specified above shall be subject to excise duty if

intended for use, offered for sale or used as motor fuel.

The rate of duty to be charged shall be fixed at the rate for

the equivalent motor fuel.

In addition to the taxable products listed above, any

product intended for use, offered for sale or used as motor

fuel, or as additive or extender in motor fuels, shall be

taxed as motor fuel.

In addition to the taxable products listed above, any other

hydrocarbon, except for peat, intended for use, offered for

sale or used for heating purposes, shall be taxed as motor

fuel.

EXEMPTIONS

Energy products used for purposes other than as motor

fuels or as heating fuels are exempt from the payment of

excise duty under such conditions which the Minister may

prescribe for the purpose of ensuring the correct and

straightforward application of such exemptions and of

preventing any evasion, avoidance or abuse.

The biomass content (i.e. the percentage element) in

Biodiesel is exempted from the payment of excise duty

under fiscal control where such energy products are

made up of, or contain, one or more of the following

products

-

products falling within CN Codes 1507 to 1518;

-

products falling within CN Codes 3824.90.55 and

3824.90.80 to 3824.90.99 for their components

produced from biomass;

-

products falling within CN Codes 2207.20.00 and

2905 11 00 which are not of synthetic origin;

-

products produced from biomass, including prod-

ucts falling within CN Codes 4401 and 4402;

-

products which contain water (CN Codes 2201 and

2851.00.10).

"Biomass" shall mean the biodegradable fraction of

products, waste and residues from agriculture (including

vegetal and animal substances), forestry and related

industries, as well as the biodegradable fraction of

industrial and municipal waste.".

39. The Fifth Schedule to the principal Act shall be

renumbered as the Sixth Schedule.

40. Immediately after the Fourth Schedule to the principal Act,

as substituted by this Act, there shall be added the following new

"FIFTH SCHEDULE

MOBILE TELEPHONY SERVICES

Description of excise goods

Rate of Excise Duty

Mobile Telephony Services (Leasing of lines and Top-up

3%".

41. Immediately after Part F in the Sixth Schedule to the

principal Act, as renumbered by this Act, there shall added the

following new Part

"PART G

Mobile Telephony Services Regulations

1. The title of these regulations is the Mobile

Telephony Services Regulations.

2. These regulations shall apply to all revenues

generated by mobile telephony services as provided

for in regulation 4.

3. Mobile telephony operators shall register with

the Comptroller in terms of the Excise Duty Act,

hereinafter referred to as "the Act".

4. Excise duty shall be assessed on all the

charges levied by mobile operators from their

services including subscriptions and top-up vouchers

Provided that the term "operator" has the

same meaning as defined in article 2 of the Electronic

Communications (Regulation) Act

Provided also that no excise duty shall be due

on the following services

(a)

inbound roaming;

(b) interconnection revenues;

(c)

donations of a pecuniary nature

transferred from the donor to the donee via

services offered by the mobile telephony

operator;

(d) free airtime.

5. The person, firm, partnership or company

who is duly registered with the Comptroller shall be

responsible for the payment of excise duty as

specified in article 3 of the Act at the time payment of

excise duty becomes due.

6. (1) The records of the revenues generated by

the services which are subject to excise duty by virtue

of these regulations shall be made available to the

Comptroller for any necessary verifications.

(2) A periodic statement which gives details of

revenues generated by the services subject to excise

duty by virtue of these regulations shall be provided

to the Comptroller for any period that may be

determined by the Comptroller.

(3) The term of an accounting period shall be

three months or such longer period as the Comptroller

may allow or as otherwise be prescribed and a return

shall reach the Comptroller within thirty days after

the end of each accounting period being reported

upon.

(4) Any person who fails to comply with the

provisions of these regulations shall be guilty of an

offence and shall be liable on conviction to a fine

(multa) not exceeding five hundred liri.".

PART X

42. (1) This Part amends the Gaming Act, and it shall be Amendment of

read and construed as one with the Gaming Act, hereinafter in this the

Part referred to as "the principal Act".

(2) The provisions of this Part shall come into force on such

date as the Minister responsible for finance may by notice in the

Gazette establish.

43. Article 2 of the principal Act shall be amended as follows

(a)

the present provision shall be renumbered as

subarticle (1) thereof; and

(b) immediately after subarticle (1) thereof there shall

be added the following new subarticle

"(2) In this Act and in any regulation made

thereunder, if there is any conflict between the English and

the Maltese texts, the English text shall prevail.".

44. Article 11 of the principal Act shall be amended as

(a)

in subarticle (1) thereof -

(i) in sub-paragraph (ii) of paragraph (f) thereof,

for the words "of his duties; and" there shall be substituted

the words "of his duties;";

(ii) in paragraph (g) thereof, for the words

"identification documents." there shall be substituted the

words "identification documents; and"; and

(iii) immediately after paragraph (g) thereof there

shall be added the following new paragraph

"(h) observe the operations of the casino

offsite through any of the systems referred to in

article 23."; and

(b) for subarticle (3) thereof there shall be substituted

the following new subarticle

"(3) An inspector may be present at the opening

and closing of any gaming table, when any adjustment is

made to the table float, when the count of money and

tokens is undertaken, and at the opening and closing of any

gaming machine and to verify jackpot wins.".

45. In the English version only, in subarticle (4) of article 15 of

the principal Act for the words "The casino licence shall be in a

form approved by the Board and -" there shall be substituted the

words "The casino licence shall be in a form approved by the

Authority and -".

46. For subarticle (3) of article 16 of the principal Act there

shall be substituted the following new subarticle

"(3) Determinations under subarticle (1) shall not be

made at intervals of less than twelve months.".

47. Article 23 of the principal Act shall be substituted by the Substitution of

article 23 of the

following new article

principal Act.

"23. (1) The casino licensee shall, for the purpose of

ensuring security within the premises of the casino and for the

purpose of enabling the Authority to observe the operations of

the casino in any manner whatsoever, install and keep in good

working order such camera, audio and other systems required

by the Authority, in such manner, numbers and locations, and

which shall be observed by such number of persons adequately

trained to be employed as professional security staff as may be

approved by the Authority

Provided that the Authority may require the casino

licensee to give it access to the systems mentioned in this article

for the purpose of observing the operations of the casino, and to

be put in possession of any information collected and processed

by such systems.

(2) The casino licensee shall, for the purposes

mentioned in subarticle (1) submit for approval any procedures

used within the casino, required by the Authority

Provided that the Authority may amend the procedures

submitted after consultation with the casino licensee, and the

casino licensee shall implement any amended or new

procedures within the casino as determined by the Authority in

its sole discretion.".

48. Article 50 of the principal Act shall be amended as Amendment of

article 50 of the

follows

principal Act.

(a)

paragraphs (f) and (g) thereof shall be renumbered

as paragraphs (g) and (h) respectively; and

(b) immediately after paragraph (e) thereof there shall be

added the following new paragraph

"(f) prescribe in relation to the systems referred to

in article 23;".

PART XI

49. (1) This Part amends the Cultural Heritage Act and shall Amendment of

be read and construed as one with the Cultural Heritage Act, the

Heritage Act,

hereinafter in this Part referred to as "the principal Act".

(2) The provisions of this Part shall come into force on such

date as the Minister responsible for culture may by notice in the

Gazette establish.

50. Subarticle (3) of article 10 of the principal Act shall be

substituted by the following

"(3) The Centre shall be governed by a Board of

Directors consisting of not less than five and not more than nine

members appointed by the Minister, one of whom shall be the

Chairperson and another the Deputy Chairperson.".

PART XII

51. The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2005.

For the purpose of this Part, "revenue" has the same Interpretation.

meaning as is assigned to it in article 2 of the Financial Cap. 174.

Administration and Audit Act, but does not include proceeds from

loans.

(1) Subject to the provisions of this Act, the Authority to

Government of Malta may raise in Malta, by way of loan, a sum of raise loan.

money not exceeding one hundred and fifty million Maltese liri.

(2) For the purpose of raising the aforesaid loan the Minister

responsible for finance is hereby authorised to issue stock in Malta

under the provisions of the Local Loans (Registered Stock and Cap. 161.

Securities) Ordinance on such terms and conditions as the said

Minister may approve.

Any money borrowed under the authority of this Part shall

be appropriated and applied for the purpose of meeting excess

expenditure over revenue incurred in the Consolidated Fund during

the year 2004 and that projected to be or may otherwise be, incurred

during the year 2005 or during subsequent years.

PART II

(1) This Part amends the Income Tax Act, and shall be

read and construed as one with the Income Tax Act, hereinafter in this

Part referred to as "the principal Act".

(2) (a)

The provisions of articles 8, 9 and 10 shall be

deemed to be applicable in respect of the relevant investment income

referred to in article 41 of the principal Act received as from the 1st

January, 2003.

(b) The provisions of articles 7, 13 and 14 shall come

into force as from the year of assessment 2006.

(c)

The provisions of article 11 shall come into force as

from the year of assessment 2007.

Article 14B of the principal Act shall be amended as

(a)

the present provisions of the article, excluding the

proviso thereof, shall be renumbered as subarticle (1); and

(b) immediately after subarticle (1) thereof there shall

be added the following new subarticle

"(2) Any individual qualifying under the

provisions of subarticle (1) who proves to the satisfaction

of the Commissioner that in the said year he has paid fees

to the named school in respect of his child with special

needs for the services of a facilitator, shall be allowed as a

deduction against his income the fees so paid up to a

maximum of four thousand liri, provided that advice shall

have been given by a board established for the purpose by

the Minister responsible for education to the effect that the

said facilitator is necessary for that child.".

Article 33 of the principal Act shall be amended as

(a)

in subarticle (1) thereof, for the words "such

payment." there shall be substituted the words "such payment:"

and immediately thereafter there shall be inserted the following

new proviso

"Provided that where the recipient is an individual

who derives investment income referred to in article

41(a)(viii), tax shall be deducted at the rate specified in

article 56(6)."; and

(b) immediately after subarticle (4) thereof, there shall

be inserted the following new subarticle

"(5) For the purposes of the investment income

provisions, tax shall be deducted on the amount of the

investment income before deducting any foreign tax,

whether charged directly or by way of witholding.".

In subarticle (2) of article 40 of the principal Act, for the Amendment of

words "article 41(a)(iv) and 41(a)(vii)" there shall be substituted the article

principal Act.

words "article 41(a)(iv), 41(a)(vii) and 41(a)(viii)".

Immediately after article 41(a)(vii) of the principal Act, Amendment of

article 41 of the

there shall be inserted the following new subparagraph

principal Act.

"(viii) profits distributed by a company that is not resident

in Malta (and that is not a collective investment scheme) and

where such profits are paid through the services of an authorised

financial intermediary to an individual who is resident in Malta

provided that such distributed profits constitute income in the

hands of such individual that is derived from shares in such

company, each share being a qualifying asset as defined in the

provisions of article 9B;".

Subarticle (17) of article 56 of the principal Act shall be Amendment of

article 56 of the

amended as follows

principal Act.

(a)

for the words "during the carrying out of such work

or duties -" there shall be substituted the words "during the

carrying out of such work or duties, notwithstanding anything to

the contrary contained in this Act, such income shall be deemed

to constitute the last part of that individual’s total income for

that year and shall be charged to tax at 15 cents on every lira.";

and

(b)

paragraphs (a), (b), (c) and (d) thereof shall be

deleted.

Immediately after subarticle (5) of article 67A of the

principal Act, there shall be inserted the following new subarticles

"(6) An equalisation reserve shall form part of the

distributable profits of a collective investment scheme.

(7) For the purposes of this Act, in the case of a

collective investment scheme

"equalisation reserve" means an allocation of

income, whether annual or interim, made in respect of

units created or issued or sold during an accounting period,

whether annual or interim, representing the best estimate

of the relevant management company or of the scheme, of

the amount of income included in the price by reference to

which the issue or selling price of such units were

determined;

"dividend" includes amounts distributed out of an

equalisation reserve.".

In subarticle (9) of article 90A of the principal Act, for the

words "where such spouse" there shall be substituted the words

"where at least one of the spouses" and for the words "and has other

income from part-time work" there shall be substituted the words

"and either or each of the spouses has other income from part-time

Immediately after subarticle (2) of article 96 of the

principal Act there shall be added the following new subarticle

"(3) The Minister responsible for finance may make

rules prescribing tax credits and may also by such rules

determine the class of persons to whom such tax credits shall

apply and the method of calculating or estimating such tax

credits and the amounts thereof.".

PART III

(1) This Part amends and shall be read and construed as

one with the External Transactions Act, hereinafter referred to as "the

principal Act".

(2) The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2005.

For subarticle (1) of article 9 of the principal Act, there

shall be substituted the following

"(1) Except for the purpose of any prosecution for an

offence against the Act, no information which can be related to

an identifiable person and which is obtained under this Act shall

be disseminated, shown or communicated to any person or body

without the written consent of the individual or his

representative.".

PART IV

This Part amends the National Holidays and Other Public Amendment of

Holidays Act, and it shall be read and construed as one with the the

Holidays and

National Holidays and Other Public Holidays Act hereinafter in this Other Public

Holidays Act,

Part referred to as "the principal Act".

Article 6 of the principal Act shall be amended as follows

Amendment of

article 6 of the

principal Act.

(a)

for the words "or in any other instrument

whatsoever," there shall be substituted the words "or in any

other instrument whatsoever:";

(b) the words "where under the conditions of service

applicable to a person such person is, or but for the provisions

of this Act would have been, entitled to a holiday on any day

which ceases to be a public holiday by virtue of this Act, such

person shall cease to be entitled to a holiday on any such day as

aforesaid, but shall become entitled to a holiday on any day

which is a public holiday after the commencement of this Act

and was not a public holiday before that date;" shall be lettered

as paragraph (a) of article 6;

(c)

immediately after the said paragraph (a) there shall

be added the following paragraph (b)

"(b) with effect from 1st January, 2005 when a

National Holiday or a Public Holiday listed in the

Schedule to this Act falls on a Saturday or on a Sunday, it

shall not be deemed to be a public holiday for the purposes

of entitling any person to an additional day of vacation

leave;"; and

(d) the words "and any such other law, contract or

instrument as aforesaid shall have effect accordingly." shall

follow at the end of article 6 as applying to the whole article 6.

PART V

(1) This Part amends the Education Act, and it shall be

read and construed as one with the Education Act, hereinafter in this

Part referred to as "the principal Act".

(2) The provisions of this Part shall come into force on the

date of publication of this Act in the Gazette.

Subarticle (3) of article 43 of the principal Act shall be

renumbered as subarticle (4) thereof and immediately after subarticle

(2) there shall be added the following new subarticle

"(3) When giving his permission in accordance with

subarticle (2) hereof, the Minister may impose such conditions

requiring the minor to attend such alternative educational or

training programmes as may be prescribed, and any such

permission shall be considered immediately withdrawn if any of

the conditions imposed in such permission are not observed.".

PART VI

(1) This Part amends the Employment and Training

Services Act, and it shall be read and construed as one with the

Employment and Training Services Act, hereinafter in this Part

referred to as "the principal Act".

(2) The provisions of this Part shall come into force on the

date of publication of this Act in the Gazette.

Article 11 of the principal Act shall be amended as

(a)

for subarticle (2) thereof, there shall be substituted

the following

"(2) The Register shall consist of such separate

parts: Part One, for the registration of persons who are

unemployed; Part Two, for the registration of persons who,

without a good and sufficient cause, terminate employment

or reject an opportunity of employment or training, or who

otherwise refuse or fail to participate in any employment

or training measure or scheme of the Corporation; Part

Three, for persons in gainful occupation who are seeking

alternative employment; such other Part for any category

of persons or purposes as may be prescribed after

consultation with the Corporation."; and

(b) in subarticle (3) thereof, for the words "For the

purpose of" there shall be substituted the words "Subject to such

provisions as may from time to time be otherwise prescribed,

for the purpose of".

Article 13 of the principal Act shall be amended as Amendment of

article 13 of the

principal Act.

(a)

in subarticle (1) -

(i) in subparagraph (i) of paragraph (a) for the

words "as to age, former" there shall be substituted the

words "as to former";

(ii) in the proviso immediately after paragraph

(b) for the words "the Corporation shall" there shall be

substituted the words "the Corporation shall, unless

otherwise prescribed," and for the words "Part Two and

Three" there shall be substituted the words "any other

Part";

(b) in subarticle (2) immediately after the words

"employment or training" there shall be inserted the words "or

of any other assistance or service";

(c)

subarticle (3) shall be renumbered as subarticle (5);

(d) immediately after subarticle (2) there shall be

inserted the following new subarticles

"(3) Any person who, whilst registered in Part

One or Part Two of the Register, is engaged in a gainful

occupation or who, without the prior permission of the

Corporation, is engaged in any occupation consisting in the

provision to any person of services that are normally

remunerated, shall forfeit his right to registration under

article 12 or to referral for employment under this article.

(4) Any person who forfeits his right to

registration or to referral under article 12 or this article

shall not be entitled to be registered in Part One or Part

Two of the Register or to referral for employment unless

such person proves to the satisfaction of the Corporation

that after having forfeited such rights as aforesaid he had

been gainfully occupied for a continuous period of six

months and has ceased to be gainfully occupied for reasons

that are deemed to be good and sufficient.".

Article 15 of the principal Act shall be amended as

(a)

in subarticle (2) the words "may deem appropriate."

shall be substituted by the words "may deem appropriate:"; and

(b) immediately thereafter there shall be inserted the

following proviso

"Provided that any employee who is employed by

the Government of Malta or by any body corporate or

company referred to in article 110(6) of the Constitution

from amongst persons who already are public officers or

are employees of any other body corporate or company

referred to in article 110(6) of the Constitution, then such

employee shall be deemed to have been employed through

the recruitment service provided by the Corporation.".

In subarticle (1) of article 46 of the principal Act,

immediately after the words "or of the Corporation" there shall be

added the words "or any other person.".

PART VII

(1) This Part amends the Duty on Documents and

Transfers Act, and shall be read and construed as one with the Duty

on Documents and Transfers Act, hereinafter in this Part referred to

as "the principal Act".

(2) The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2005.

In the second proviso of article 27 of the principal Act, for

the words "reduced to fifty per centum of the amount of premium so

payable:" there shall be substituted the words "reduced to ten per

centum of the amount of premium so payable:".

Immediately after article 41 of the principal Act, there

shall be inserted the following new article 41A

No duty shall be chargeable upon a

''Exemption on

certain company

division of a company where the ultimate individual

beneficial shareholders in the recipient companies

remain the same shareholders of the company to be

divided and each such shareholder shall have the

same proportion of shares in each of the recipient

companies as he held in the company to be divided.".

29. In paragraph (c) of subarticle (1) of article 42 of the Amendment of

principal Act, for the words "article 45:" there shall be substituted the article

principal Act.

words "article 45." and the proviso immediately thereafter shall be

PART VIII

30. This Part amends the Income Tax Management Act and it Amendment of

shall be read and construed as one with the Income Tax Management the

Management

Act,

Act, hereinafter in this Part referred to as "the principal Act".

31. Article 10A of the principal Act shall be amended as Amendment of

article 10A of

the principal

Act.

(a)

the present provision thereof shall be renumbered as

subarticle 10A(1);

(b) immediately after subarticle (1) thereof as

renumbered, there shall be inserted the following new

subarticles

"(2) Where the Commissioner is satisfied that a

request for information made by a foreign tax authority

under an arrangement referred to in subarticle (1) of this

article concerns a tax fraud, or a serious suspicion of a tax

fraud, the provisions of subarticle (1) of this article shall

apply even if the Commissioner could not collect the

relevant information for the purposes of the Income Tax

Acts. The provisions of this subarticle shall have effect in

respect of any person, entity or scheme referred to in

article 17 of this Act notwithstanding any obligation to

secrecy or confidentiality, or to any other restriction

relating to the disclosure of information imposed by any

enactment (including the Income Tax Acts) or imposed in

any other way.

(3) For the purposes of subarticle (4) of this

article, "tax" means any tax covered by a relevant

arrangement as referred to in subarticle (1) of this article.

(4) For the purposes of subarticle (2) of this

article, "tax fraud" means any of the following acts

affecting a tax when committed knowingly -

(a) failure to comply with record-keeping

duties laid down by law including the preparation or

use of false or incomplete records, the non-

production of records, the destruction of records and

the preparation and, or use of forged documents;

(b) failure to comply with information

reporting duties laid down by law including the

failure to file a tax return or any other official

document upon which a tax liability is based;

(c) the inclusion of false or misleading

information, including the omission of information,

in an official document that leads to reduction in an

amount of tax otherwise payable;

(d) the arrangement of a tax avoidance scheme

for the purpose of artificially or fictitiously reducing

an amount of tax otherwise payable;

(e) the organisation of insolvency for the

purpose of obstructing the collection of tax;

(f) the making of false claims to repayments or

other entitlements;

(g) the failure to comply with tax obligations

resulting or intended to result in a reduction of tax

revenue which otherwise would not have been

allowed.".

32. Article 16 of the principal Act shall be amended as

(a)

for the words "in respect of a person or persons

specified by him" there shall be substituted the words "in

respect of any matter";

(b)

the first proviso thereto shall be deleted;

(c)

in the second proviso thereto the word "further"

shall be deleted; and immediately after the words "duty of

professional secrecy." there shall be added the following words

"Where any information is protected by professional secrecy for

the benefit of any person, nothing in this proviso shall preclude

the giving of such information in respect of any other person,

excluding therefrom the name of the person in whose interest

such protection is given.".

33. In subarticle (1) of article 20 of the principal Act, for the

words "serving such purposes in order to observe and record" there

shall be substituted the words "serving such purposes in order to

inspect any books, documents, accounts and returns or to observe and

34. Immediately after article 24B of the principal Act there Addition of new

shall be added the following new article

24C. For the purpose of ensuring compliance

with the provisions of the Income Tax Acts, the

Commissioner may

(a)

demand and request from any

person the production of information which, in

the opinion of the Commissioner, relates to the

income or the economic activities of any other

person or class of persons;

(b) inspect and request the production

of any books, records or documents or a copy

or extract thereof, which, in the opinion of the

Commissioner, relate to the income or the

economic activity of any person or class of

persons

Provided that the information requested

under this article may not include

(i)

any information falling within the

definition of a "professional secret" or "secret"

in terms of article 2 of the Professional Secrecy

Act; or

(ii) any information falling within the

definition of "sensitive personal data" in terms

of article 2 of the Data Protection Act

Provided further that where any such

information is protected by professional secrecy or

the provisions of the Data Protection Act and such

protection is for the benefit of any person, such

information in respect of any other person shall be

given excluding therefrom the name of the person in

whose interest such protection is given.".

PART IX

35. This Part amends the Excise Duty Act and it shall be read Amendment of

and construed as one with the Excise Duty Act hereinafter in this Part the

referred to as "the principal Act".

36. (1) The provisions of article 38, as regards the Third

Schedule, shall be deemed to have come into force on the 25th

November, 2004.

(2) The provisions of article 38, as regards the Fourth

Schedule, shall be deemed to have come into force on the 25th

November, 2004

Provided that the provisions relative to the words under the

column "Description of Excise Goods" for the item "Biodiesel (a

mixture of biomass and gas oil)" as well as for the words under the

item "Exemptions" from "The biomass content" to "municipal waste",

these shall come into force on such date as the Minister responsible

for finance may by notice in the Gazette establish

Provided further that with regard to the column

"Description of excise goods" relative to the item "If used in the

following maritime commercial activity: - Inland Navigation between

Malta and Gozo by vessels of a tonnage of 3,500 tons or more" in the

Fourth Schedule, as amended, for the period 25th November, 2004

and the promulgation of this Act, the relative words under the column

"Rate of Excise Duty" shall be deemed to have been "Lm10.40 per

1000 litres".

(3) The provisions of article 38, as regards the Fifth Schedule,

shall be deemed to have come into force on the 25th November, 2004.

(4) The provisions of Part G in article 41 shall be deemed to

have come into force on the 15th December, 2004.

37. For the words "Fifth Schedule" in subarticle (4) of article

13 of the principal Act, there shall be substituted the words "Sixth

Schedule".

38. For the First, Third, and Fourth Schedules to the principal

Act, there shall be substituted the following Schedules

"FIRST SCHEDULE

First Column

Second Column

List of Excise Goods

Relevant Schedule

Alcohol and alcoholic beverages to the extent as shown

in the relevant schedule to this Act.

Second Schedule

Manufactured tobacco to the extent as shown in the rele-

vant schedule to this Act.

Third Schedule

Energy products to the extent as shown in the relevant

schedule to this Act.

Fourth Schedule

Mobile Telephony Services

Fifth Schedule

4% of the retail price

plus Lm 7.30 per 1000

1. a. The following shall be deemed to be cigarettes

cigarettes

but not less than

i. rolls of tobacco capable of being smoked as they

Lm

43.30

per 1000

are and which are not cigars or cigarillos within

cigarettes

the definition of cigars or cigarillos below;

ii. rolls of tobacco which, by simple non-industrial

handling, are inserted into cigarette-paper tubes;

iii. rolls of tobacco which, by simple non-industrial

handling, are wrapped in cigarette paper;

b. a roll of tobacco referred to in indent i. shall, for

excise duty purposes, be considered as many cig-

arettes as results when dividing the length in cen-

timetres of the roll (excluding filter or mouth

piece) by nine, any remainder above a whole unit

counting as one.

Products consisting in whole or in part of substances

other than tobacco but otherwise conforming to the

criteria set out in indents a. (i) to (iii) above shall be

treated as cigarettes and the provisions of b. shall

apply thereto.

2. For the purpose of the ad valorem duty, the retail

manufacturer for the retail sale of the cigarettes;

where no such price has been recommended, the

retail price at which cigarettes of that description are

normally sold by retail is used.

Cigars and Cigarillos

Lm 6.22 per 1000 units

The following shall be deemed to be cigars or cigarillos if

they can be smoked as they are

i.

rolls of tobacco made entirely of natural tobacco;

ii. rolls of tobacco with an outer wrapper of natural

tobacco;

iii. rolls of tobacco with a threshed blend filler and

with an outer wrapper of the normal colour of a

cigar covering the product in full, including

where appropriate the filter but not, in the case of

tipped cigars, the tip, and a binder, both being of

reconstituted tobacco, where the unit weight, not

including the filter or mouth-piece, is not less

than 1,2 g and where the wrapper is fitted in

spiral form with an acute angle of at least 30° to

the longitudinal axis of the cigar;

iv. rolls of tobacco with a threshed blend filler and

with an outer wrapper of the normal colour of a

cigar, of reconstituted tobacco, covering the

product in full, including where appropriate the

filter but not, in the case of tipped cigars, the tip,

where the unit weight, not including filter or

mouth-piece, is not less than 2.3 g and the

circumference over at least one third of the length

is not less than 34 mm.

Products consisting in part of substances other than

tobacco but otherwise conforming to the criteria set out in

indents (i) to (iv) shall be treated as cigars and cigarillos

provided they have

-

a wrapper of natural tobacco, or

-

a wrapper and binder of tobacco, both of

reconstituted tobacco, or

-

a wrapper of reconstituted tobacco.

Hand-rolling Tobacco

Lm 27.70 per kg.

Other Smoking Tobacco

Lm 27.70 per kg.

The following shall be deemed to be smoking tobacco

i.

tobacco which has been cut or otherwise split,

twisted or pressed into blocks and is capable of

being smoked without further industrial

processing;

ii. tobacco refuse put up for retail sale which does

not fall under Cigarettes or Cigars and Cigarillos

above and which can be smoked.

Smoking tobacco as defined above in which more than

25% by weight of the tobacco particles have a cut width of

less than 1mm shall be deemed to be fine-cut tobacco for

the rolling of cigarettes.

Smoking tobacco in which more than 25% by weight of

the tobacco particles have a cut width of more than 1mm

and which was sold or intended to be sold for the rolling of

cigarettes may also be deemed to be fine-cut tobacco for

the rolling of cigarettes.

Products consisting in whole or in part of substances other

than tobacco but otherwise conforming to the criteria set

out in indents (i) and (ii) above shall be treated as smoking

tobacco.

Pipe Tobacco

Lm 8.92 per Kg

Chewing Tobacco and Snuff

Lm 12.03 per Kg

EXEMPTIONS

Products containing no tobacco and used exclusively for

medical purposes shall not be treated as manufactured

tobacco

Manufactured tobacco denatured to the satisfaction of the

Comptroller of Customs and used for industrial or

horticultural purposes.

Manufactured tobacco which

is

destroyed

under

administrative supervision.

Manufactured tobacco which is solely intended for

scientific tests and for tests connected with product

quality.

Manufactured tobacco which is reworked by the producer.

Without prejudice to any other law, in any reprint of this

Act, Parts II to the last Part need not be reproduced and it shall be

sufficient to reproduce Part I of this Act

Provided that nothing in this article shall be construed as

reducing the validity of anything contained in the parts not so

reproduced.

Passed by the House of Representatives at Sitting No. 235 of the

9th February, 2005.

A NTON T ABONE

Speaker

R ICHARD J. C AUCHI

Clerk to the House of Representatives