ACT No. VII of 2018 AN ACT to implement Budget measures for the financial year 2018 and other administrative measures.

I assent.

(L.S.)

MARIE-LOUISE

COLEIRO PRECA

President

29th March, 2018

ACT No. VII of 2018

AN ACT to implement Budget measures for the financial year

2018 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

Implementation Act, 2018.

PART I

The provisions of this Part shall be deemed to have come

into effect on the 1st January, 2018.

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

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

Administration and Audit Act, but does not include proceeds from

loans.

(1)

Subject to the provisions of this Act, the

Government of Malta may raise, by way of loan, a sum of money not

exceeding three hundred fifty million euro (€350,000,000).

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

for Finance is hereby authorised to raise such loans under the

provisions of the Government Borrowing and Management of Public

Debt Act, on such terms and conditions as the said Minister may

Any money borrowed under the authority of this Part shall Purpose.

be appropriated and applied for the purpose of

(a)

meeting excess expenditure over revenue incurred in

the Consolidated Fund for year 2018;

(b) redeeming registered stocks which are due for

redemption during 2018;

(c)

contributing funds in the sinking fund; and

(d) effecting portfolio changes in relation to amounts

raised through Treasury Bills, amounts raised through

Government Stocks, and in respect of loans raised outside Malta

as and when required in line with Government’s debt

management policies.

PART II

This Part amends the Customs Ordinance and it shall be Amendments to

read and construed as one with the Customs Ordinance, hereinafter in the

Ordinance.

this Part referred to as "the Ordinance".

In the definition "officer of the customs" in article 2 of the Amendment of

principal Act, the words "of this Ordinance" shall be substituted by the article

principal Act.

words "of this Ordinance as authorised for this purpose".

Article 6 of the Ordinance shall be amended as follows

Amendment of

article 6 of the

Ordinance.

(a)

in sub-article (2) thereof immediately after the

words "of such vessel" there shall be added the words "or when

passing through territorial waters;";

(b) sub-article (4) thereof shall be substituted by the

following

"(4) If the master fails to make due report, or if he

shall present such a report and the same is inaccurate in

any material particular, or if he refuses to answer or does

not answer truly any question put to him as aforesaid, he

shall on conviction be liable to a fine (multa) of not less

than two hundred and fifty euro (€250) but not exceeding

two thousand five hundred euro (€2,500)."; and

(c)

immediately after sub-article (6) thereof there shall

be added the following new sub-articles

"(7) Without prejudice to any other obligation

under any other law, the provisions of this article apply

also mutatis mutandis to any aircraft entering the airspace

of Malta and the pilot of that aircraft has the same duties

towards the airport authority as the master of a ship has

towards the port authority, as provided for in this article,

and on conviction is liable to the same fine (multa) if he is

found guilty of non-fulfilment of these obligations.

(8) In this article, the word "aircraft" means any

aircraft flying, or intended by the operator to fly, for the

purpose of aerial work.".

Article 60 of the Ordinance shall be amended as follows

(a)

the current provisions thereof shall be renumbered

as sub-article (1);

(b) the words "then and in every such case, all such

goods shall be forfeited together with any goods which may be

found packed with or used in concealing them." in the paragraph

immediately after paragraph (k) of sub-article (1) as

renumbered, shall be substituted by the words "then and in

every such case, all such goods shall be forfeited together with:"

and immediately thereafter there shall be added the following

new sub-paragraphs

"(i) any other goods which together with them

make up one whole object, even if they are separable in

any way or they can be removed or be separated; and

(ii) any other goods which may be found packed

with them; and

(iii) any other goods used in concealing them.";

and

(c)

immediately after sub-article (1) thereof there shall

be added the following new sub-article

"(2) The forfeiture provided for in this article

should never be understood to mean that an object entering

Malta can be split into parts in such a way that at the

moment of forfeiture it is in any way different from the way

it was when entering Malta.".

Article 62 of the Ordinance shall be amended as follows

(a)

paragraphs (a) and (b) of the proviso thereof shall be

renumbered as paragraphs (b) and (c);

(b) immediately before paragraph (b) as renumbered

there shall be added the following new paragraph

"(a) in the case of offences relating to tobacco

mentioned in the First Schedule to this Ordinance, on

conviction the offender is liable for each such offence to a

fine (multa) equivalent to three times the amount of duty

payable on the goods or five times the amount of duty

endangered, whichever is the lesser, but in each case not

less than four thousand euro (€4,000), and such that one-

third of such amount shall be considered as a civil debt

owed and payable to the Department of Customs, together

with imprisonment for a term not exceeding two years, and

the offender may be either detained or proceeded against

by summons, in the same manner and form, and subject to

all other provisions laid down in the Criminal Code; and";

and

(c)

in paragraph (b) as renumbered of the Maltese text,

immediately after the words "f’kull każ;" there shall be added

the word "u".

Immediately after article 63A of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

63B. In case of an out of court agreement under

article 63 and 63A, when the law provides for the lowest

and the highest amount of the fine (multa) that may be so

imposed by the Court, the sum that shall be paid as a result

of that agreement, shall be a sum which is equivalent to the

said lowest amount increased by half the difference

between the said lowest and highest amounts.".

Immediately after article 70A of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

70B. Where a Customs officer has reasonable grounds

to suspect that a person is committing an offence against this

Ordinance and or against its subsidiary legislation, then such

officer may detain such person without a warrant and as

soon as immediately practicable thereafter, and in any case

not later than two hours after such detention, place such

person in the custody of an officer of the Police force

whereupon such officer of the Police force shall either

release such person or proceed to present such person before

a court and the provisions of the Criminal Code relating to

arrest shall mutatis mutandis apply to the Customs officer

and the officer of the Police force."

PART III

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

into force as follows

(a)

paragraph (a) of article 17 as from year of

assessment 2015;

(b) articles 15, 19, 21, 22 and paragraphs (a) and (d) of

article 23 as from year of assessment 2017;

(c)

paragraph (d) of article 16 as from 1st January 2017;

(d) articles 15, 20, 22, 23 and paragraphs (a) and (d) of

article 24 as from year of assessment 2019; and

(e)

article 26 as from year of assessment 2018.

The definition of "participating holding" in sub-article (1)

of article 2 of the principal Act shall be amended as follows

(a)

in paragraph (a) thereof, the word "ten", wherever it

occurs, shall be substituted by the word "five"; and

(b) the first proviso to the definition shall be substituted

by the following

"Provided that a holding of a company in –

(a) a partnership or EEIG referred to in sub-

paragraph (iii) of paragraph (a) of the definition of

"company" in sub-article (1) of article 2 of the Act, not

being a property partnership, and which has not elected to

be treated as a company in terms of article 27(6) of the

Income Tax Management Act; or

(b) a body of persons referred to in sub-

paragraph (ii) of paragraph (b) of the definition of

"company" in sub-article (1) of article 2 of the Act, not

being a property partnership, and which has not elected to

be treated as a company in terms of article 27(6) of the Cap. 372

Income Tax Management Act; or

(c) a collective investment vehicle constituted,

incorporated or registered outside Malta and which is not

resident in Malta, where the liability of investors in such

scheme is limited to the amount invested by them,

shall be deemed to constitute a participating

holding if it satisfies the provisions of any of paragraphs

(a) to (f) above which shall apply mutatis mutandis to such

holding. For the purposes of this proviso, the terms "equity

shares" or "shares" shall be construed as referring to the

capital in the said partnership, EEIG, body of persons or

collective investment scheme as the case may be which

entitles the holder to at least two of the following rights

(i)

a right to vote;

(ii)

a right to profits available for distribution;

and

(iii) a right to assets available for distribution

on a winding up of the said body of persons,

and the term "equity shareholder" shall be

construed accordingly and the reference to "company" in

this definition and in the provisos thereto shall be deemed

to include also such partnership, EEIG, body of persons or

collective investment scheme as the case may be.".

In the proviso to sub-article (1) of article 4 of the principal Amendment of

Act, immediately before the final paragraph beginning with the words article

principal Act.

"Sohowever also", there shall be added the following new paragraph

"Sohowever that items (i) and (ii) of this proviso

shall not apply to an individual who is a long-term

resident, or who holds a permanent residence certificate or

a permanent residence card, in respect of any income

derived by such individual in the year of being granted

long-term resident status or the right of permanent

residence and in subsequent years. The terms "long-term

resident", "permanent residence certificate" and

"permanent residence card" shall have the meaning

assigned to them respectively in the Status of Long-Term

Residents (Third Country Nationals) Regulations and the

Free Movement of European Union Nationals and their

Family Members Order.".

Article 5A of the principal Act shall be amended as

(a)

paragraph (a) of sub-article (2) thereof shall be

amended as follows

(i) in the definition of "project", the words

"transferable portion;" shall be substituted by the words

"transferable portion:" and immediately thereafter there

shall be added the following new proviso

"Provided that it shall not include land acquired by

the owner and divided for transfer into more than one

transferable portion, where the land is transferred by the

owner in the same state as when acquired (i.e. no

excavation or any other works whatsoever have been

carried out on the property) and no permit has been issued

by the Planning Authority during the period of ownership

by the owner sanctioning the development of the land into

more than one transferable unit."; and

(ii) in the definition of "transfer", the words "It

shall not include a partition" shall be substituted by the

words "Except as provided in sub-article (7A), it shall not

include a partition";

(b)

sub-article (4) thereof shall be amended as follows

(i) in sub-paragraph (i) of paragraph (a) thereof

the words "of article 12(1)(e);" shall be substituted by the

words "of article 12(1)(e):" and immediately after there

shall be added the following new proviso

"Provided that on a subsequent transfer of the

property by any person mentioned in sub-paragraph

(i), the date of acquisition of the property shall be

considered to be the date of the original acquisition

of the property by the person who had made the

original donation;";

(ii) in paragraph (c) thereof, for the words "a

transfer of property," there shall be substituted the words

"a transfer of property not forming part of a project,";

(iii) in the second proviso to paragraph (f) thereof,

the words "and the said property has been owned by the

transferring company for a period exceeding twelve years"

shall be deleted;

(iv) immediately after the second proviso to

paragraph (j) thereof there shall be added the following

new proviso

"Provided also that on a subsequent transfer of

the said property, the date of acquisition of the

property shall be considered to be the date of the

original acquisition of the property by the

company:";

(c)

in paragraph (b) of sub-article (5) thereof for the

words "transferable property." there shall be substituted the

words "transferable property:" and immediately after there shall

be added the following new provisos

"Provided also that when a transfer to which this

article applies is a transfer of property that was acquired by

the transferor in terms of a donation made five years or less

before the date of the transfer in question, the transferor

shall be deemed for all the purposes of this sub-article (5)

to have acquired such property on the date such property

was previously acquired in an acquisition preceding the

date of the donation

Provided further that this paragraph (b) shall not

apply to a transfer referred to in paragraph (c).";

(d) in sub-article (7) thereof, the words "In a partition of

property" shall be substituted by the words "Saving the

provisions of sub-article (7A), in a partition of property";

(e)

immediately after sub-article (7) thereof, there shall

be added the following new sub-article

"(7A) (a) When the property that is partitioned

consists of or includes property that was acquired by the

partitioners from a person ("the original owner") who was,

in respect of that transfer, exempt from tax in terms of sub-

article (4)(c) or of article 5(5)(b), each of the partitioners

shall be deemed to transfer a portion of that property

equivalent to his undivided share in that property.

(b) For the purposes of this article, the transfer

that is deemed to take place upon a partition in accordance

with paragraph (a) shall be deemed to be a sale of property

for its market value and the transferor shall be deemed to

have acquired that property on the date on which it had

been acquired by the original owner. Any subsequent

transfer shall be deemed to be a transfer of property that

had been purchased on the date of the partition."; and

(f)

immediately after sub-article (12A) of article 5A

there shall be added the following new sub-article

"(12B) Where, under the provisions of

article 14(1)(f) and (j) any deduction has been

allowed in any year of assessment in respect of

any property in ascertaining the total income of

any person, and before the source of income in

respect of which the deduction has been allowed

has ceased to belong to the said person, any of

the events set out in article 24(1) occurs in the

year immediately preceding the year of

assessment in the case of any such property in

respect of which any deduction has been allowed

as aforesaid, notwithstanding any other

provision of this Act, such person shall render to

the Commissioner at the same time as he renders

his tax return under article 10 of the Income Tax

Management Act, a balancing statement in

respect of the property in question in the manner

set out in article 24(1) and the other sub-articles

of article 24 shall apply accordingly in respect of

such balancing statement. For the avoidance of

doubt, any balancing charge resulting from the

balancing statement shall be charged to tax at the

rates applicable to the particular person in terms

of article 56.".

Sub-article (1) of article 12 of the principal Act shall be

amended as follows

(a)

paragraph (a) thereof shall be substituted by the

following

"(a) (i) the income of the University of Malta;

(ii) the income of the Malta College of Arts,

Science and Technology;"; and

(b) paragraph (t) thereof shall be renumbered as sub-

paragraph (i) and the following new sub-paragraph shall be

added

"(ii) any financial assistance received by the

parent of a child in respect of the maintenance of that child

and paid by the other parent in terms of a public deed

regulating the obligations of the parents for the

maintenance of that child.".

Sub-article (1) of article 14 of the principal Act shall be Amendment of

article 14 of the

amended as follows

principal Act

(a)

paragraph (m) thereof shall be substituted by the

following

"(m) any expenditure of a capital nature on

intellectual property or any intellectual property rights

incurred by a person and which intellectual property or

intellectual property rights are proved to the satisfaction of

the Commissioner to have been used or employed in the

production of the income of such person

Provided that any such expenditure shall be

spread equally over a number of years which shall not be

less than a minimum period of three consecutive years, the

first year being that in which the said expenditure has been

incurred or the year in which the intellectual property or

intellectual property rights is first used or employed in

producing the income."; and

(b) immediately after paragraph (o) thereof there shall

be added the following new paragraph

"(p) a deduction not exceeding such percentage

amount of qualifying income as may be prescribed derived

from qualifying intellectual property (which term shall be

defined in such manner as may be prescribed) may be

claimed by any person entitled thereto, whether such

income arises in the course of a trade, business, profession

or vocation or otherwise, subject to the satisfaction of such

terms and conditions and to obtaining such determinations

as may be prescribed.".

Paragraph (b) of sub-article (5) of article 27 of the

principal Act shall be deleted.

In paragraph (b) of sub-article (8) of article 31D of the

principal Act, the words "income is received." shall be substituted by

the words "income is received;" and immediately thereafter there

shall be added the following new paragraph

"(c) "rents" shall include ground rents, whether from an

urban or rural tenement.".

Article 33 of the principal Act shall be amended as

(a)

in sub-article (2) thereof, the words "but shall not

specify the identity of the recipient" shall be deleted;

(b) immediately after sub-article (2) thereof, there shall

be added the following new sub-article

"(2A) A payor shall render an account to the

Commissioner of all payments of investment income

falling under the provisions of this article made during any

year. The account shall be submitted to the Commissioner

by the 31st January following the year in which the

investment income is paid. Such account shall include

details of the recipient’s name, address and the income tax

registration number as well as the amount of investment

income paid, and the tax deducted, by the payor to the

recipient during that year

Provided that a payor shall not be required to

render an account to the Commissioner once nine years

have elapsed following the end of the year in which the

investment income becomes payable."; and

(c)

in sub-article (6) thereof, the words "an account of

amounts deducted is not rendered to the Commissioner as

required under this article" shall be substituted by the words "an

account is not rendered to the Commissioner in the manner

required under this article".

In article 34 of the principal Act, the first proviso to sub-

article (2) shall be deleted.

Article 56 of the principal Act shall be amended as Amendment of

article 56 of the

principal Act.

(a)

sub-article (1) thereof shall be amended as follows

(i) sub-paragraph (i) of paragraph (b) of the first

proviso thereof shall be substituted by the following

"(i) wholly maintained under his or her sole

custody a child who

(A) was not over 18 years of age (or not

over 23 years if receiving full-time instruction at any

university, college or other educational establishment

or serving an apprenticeship with a view to

qualifying in a trade or profession), or

(B) was incapacitated by infirmity from

maintaining himself or herself,

and who, in any case, was not in receipt of

income, in his or her own right, in excess of

€3,400;";

(ii) in sub-paragraph (ii) of paragraph (b) of the

first proviso thereof the words "the beneficiary" shall be

substituted by the words "the sole beneficiary"; and

(iii) in the second proviso to paragraph (b)

thereof, the words "in excess of €2,400" shall be

substituted by the words "in excess of €3,400";

(b) in paragraph (c) of sub-article (12) thereof,

immediately after the words "should have been included

therein," there shall be added the following words "or makes a

default in furnishing a form required to be submitted in

accordance with any of the provisions of the Income Tax Acts,";

(c)

in sub-article (26) thereof, the definitions of

"Council", "registered player or athlete" and "licensed coach"

shall be replaced by the following

" "Council" means SportMalta as established by the Cap. 455.

Sports Act;

"registered player or athlete" means a player or

athlete being a member of a club or team registered with

the Council and affiliated with the national regulatory body

registered with and recognised by the Council for that

particular sport;

"licensed coach" means a person registered as a

coach with a club or team registered with the Council and

affiliated with the national regulatory body registered with

and recognised by the Council for that particular sport, and

whose licence to coach that particular sport is recognized

by the aforementioned national regulatory body."; and

(d) immediately after sub-article (26) thereof, there

shall be added the following new sub-article

"(27) Any individual who during any year preceding the

year of assessment

(i) is ordinarily resident in Malta but not

domiciled in Malta (hereinafter "the non-domiciled

individual") and to whom provisos (i) and (ii) of article

4(1) apply, and who is not taxable in accordance with any

scheme under the Act effectively establishing a minimum

tax payable; and

(ii) derives income (including, in the case of a

married couple whose income is chargeable to tax in terms

of article 49 of the Act, the income derived by both

spouses) amounting to not less than thirty five thousand

euro (€35,000) or its equivalent in another currency, or

such other amount as may be prescribed, arising outside

Malta and referred to in proviso (i) to sub-article (1) of

article 4 of the Act, but which is not received in Malta,

shall, for any year of assessment, be subject to a tax

liability on his income amounting to not less than five

thousand euro (€5,000) per annum (hereinafter "the

minimum tax"), and should the income (excluding capital

gains chargeable in terms of article 5A of this Act)

chargeable to tax in the hands of such individual for any

year of assessment result in a tax liability (before taking

into account any relief granted in terms of articles 76 to 89

of the Act) amounting to less than the minimum tax, he

shall be deemed to have received in Malta additional

income arising outside Malta as shall result in a total tax

liability on his total income, wherever arising, amounting

to the minimum tax

Provided that in computing the minimum tax,

account shall be taken of tax paid under this Act, whether by

withholding or otherwise, in respect of all income (excluding

tax imposed in terms of article 5A of this Act), whether arising

in Malta or outside Malta

Provided further that if the non-domiciled individual

can prove to the satisfaction of the Commissioner that if he had

been subject to tax without taking into account the provisions of

provisos (i) and (ii) to sub-article (1) of article (4) of the Act,

the total tax payable by him would have amounted to less than

the minimum tax, his tax liability shall be capped accordingly at

the said lower amount.".

Sub-articles (6) and (7) of article 59 of the principal Act Amendment of

article 59 of the

shall be deleted.

principal Act.

In sub-article (8) of article 90A of the principal Act, Amendment of

immediately after the words "as may be prescribed," there shall be article

the principal

added the following words "and such individual receives a notice in Act.

writing in terms of article 13(7) of the Income Tax Management Cap. 372.

Act,".

Immediately after sub-article (2) of article 92 of the Amendment of

article 92 of the

principal Act, there shall be added the following new sub-article

principal Act.

"(3) When a company elects to apply the provisions

governing the flat-rate foreign tax credit in respect of any of its

income or gains and also claims a deduction in terms of paragraph

(o) of sub-article (1) of article 14 (hereinafter referred to as

"paragraph (o)") in determining the said income or gains, no

account shall be taken of the amount referred to in sub-article (1)

of article 94 for the purpose of calculating any limitation to the

amount of the said deduction which may be prescribed by rules

issued in terms of the said paragraph (o), and which is calculated

by reference to the company’s chargeable income.".

PART IV

This Part amends the Cash Control Regulations and it Amendment of

shall be read and construed as one with the Cash Control Regulations, the

Control

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

Regulations.

Regulation 3 of the principal Regulations shall be Amendment to

regulation 3 of

amended as follows

the principal

Regulations.

(a)

in sub-regulation (1) thereof, for the word

"equivalent" there shall be substituted the words "of a value of";

(b) in sub-regulation (4) thereof, for the words "forty-

six thousand and five hundred and eighty-seven euro and forty-

seven cents (€46,587.47)" there shall be substituted the words

"fifty thousand euro (€50,000)"; and

(c)

immediately after sub-regulation (5) thereof there

shall be added the following new sub-regulation

"(6) If the sum mentioned in sub-regulation (1) of

this regulation is of a value of precisely €10,000, then the

person therein mentioned, when failing to declare as therein

mentioned, shall on conviction be liable to the fine (multa)

mentioned in sub-regulation (4), but the forfeiture

mentioned in sub-regulations (3) and (5) shall not take

place."; and

(d) sub-regulation (6) thereof shall be renumbered as

sub-regulation (7).

PART V

This Part amends the Social Security Act and it shall be

read and construed as one with the Social Security Act, hereinafter in

this Part referred to as "the principal Act".

Article 2 of the principal Act shall be amended as follows

(a) immediately after the definition "self-occupied"

there shall be added the following new definition

" "self-occupied homeworker" means a self-

occupied person who is engaged by an individual, for the

purposes of that individual's business, solely for the

execution of manual work which requires no particular

trade to be done by the self-occupied homeworker at his

home such as the assembly of already finished products

which work gives no added value to such products,

provided that such self-occupied homeworker is not so

engaged by any other individual and is not otherwise

gainfully occupied;"; and

(b) immediately after the definition "single parent"

there shall be added the following new definition

" "terminally-ill person" means a person who is

medically certified to be suffering from a serious illness

whose life is not expected to go beyond twenty four months

at the maximum from the date of diagnosis of the same

illness;".

In the proviso to paragraph (a) of sub-article (2) of article 7 Amendment of

of the principal Act the words "payable by the employed person, where article

principal Act.

applicable; and" shall be substituted by the words "payable by the

employed person, where applicable," and immediately thereafter there

shall be added the words "sohowever that with effect from 1st January

2018, the provisions of sub-article (2)(a) shall only be applicable to

part-time employees whose weekly basic earnings from such part-time

employment do not exceed the National Minimum Wage; and".

Immediately after sub-article (4) of article 12 of the Amendment of

article 12 of the

principal Act, there shall be added the following new sub-article

principal Act.

"(5) A self-occupied homeworker as defined in

article 2 who, in accordance with the provisions of this

Act, is liable to pay a Class Two contribution as a self-

occupied person on his net earnings may, if such person so

elects, be exempted from the payment of a Class Two

contribution on earnings derived if such net earnings do

not exceed 50% of the National Minimum Wage as is

applicable to persons of eighteen years of age or over as

established by a National Standard Order issued under the

Employment and Industrial Relations Act.".

In the third proviso to paragraph (d) of sub-article (2) of Amendment of

article 16 of the principal Act, in the Maltese version thereto, the article

principal Act.

words "jekk dak il-missier jew dik l-omm jagħmlu xogħol" shall be

substituted by the words "jekk dak il-missier jew dik l-omm jerġgħu

jibdew jagħmlu xogħol".

In sub-article (1) of article 18 of the principal Act, the Amendment of

words "to work in the normal course of his duties:" shall be substituted article

principal Act.

by the words "to work in the normal course of his duties, sohowever

that, and notwithstanding the provisions of article 90, with effect from

1st January 2018, the provisions of this article will also apply to a

widow who is in receipt of a Pension under Part IV of this Act, who is

in an insurable employment, who has not yet reached pension age, and

who has dependent children under the age of 23:".

In paragraph (d) of sub-article (1) of article 26 of the Amendment of

principal Act the words "as specified in article 17." shall be substituted article

principal Act.

by the words "as specified in article 17, sohowever that with effect

from 1st January 2018, a person who is certified as terminally-ill as

provided in article 2, shall be entitled to the full rate of an Invalidity

Pension, an Increased Invalidity Pension, or a National Minimum

Pension, as the case may be, in accordance to the provisions of the

Twelfth Schedule to this Act, provided the contribution conditions as

provided in article 17, are satisfied.".

In paragraph (c) of sub-article (3) of article 27 of the

principal Act, the words "multi-disciplinary panel appointed under

article 106(f); and" shall be substituted by the words "multi-

disciplinary panel appointed under article 106(f):" and immediately

thereafter there shall be added the following new proviso

"Provided that, notwithstanding the provisions of this

paragraph (c), with effect from 1st January 2018, a person who

satisfies the Barthel Index score 0 - 8, after the Director will have

acted in accordance with the advice given by the multi-

disciplinary panel appointed under article 106(f); and".

Paragraph (b) of sub-article (6) of article 30 of the

principal Act shall be amended as follows

(a) immediately after the proviso to sub-paragraph (vi)

thereof there shall be added the following new proviso

"Provided

further that, notwithstanding the

provisions of this sub-paragraph (vi), with effect from 1 st

January 2018 where a person, who is in receipt of Social

Assistance for a minimum of one year in the three years

preceding the claim, partakes in insurable employment, the

entitlement for Social Assistance shall not cease, and that

person shall be entitled to 65% of the rate applicable for

the first year, to 45% of the rate applicable for the second

year and 25% of the rate applicable for the third year. The

employer shall be entitled to 25% of the rate applicable for

every year for a maximum of three years.";

(b) the words "rate for the second year and 25% of the

rate for the third year." in sub-paragraph (vii) thereof shall be

substituted by the words "rate applicable for the second year and

25% of the rate applicable for the third year:" and immediately

thereafter there shall be added the following new proviso

"Provided that, notwithstanding the provisions of

this sub-paragraph, with effect from 1st January 2018,

a person who is in receipt of Social Assistance for a

minimum of one year in the three years preceding the

claim and who contracts a marriage or a civil union or

a cohabitation in accordance with the terms and

provisions of the Cohabitation Act, with a person

engaged in an insurable occupation, shall not forfeit

the right for Social Assistance but will be entitled to

65% of the rate applicable for the first year, 45% of the

rate applicable for the second year and 25% of the rate

applicable for the third year.".

In article 48 of the principal Act the words "under the Amendment of

conditions therein mentioned." shall be substituted by the words "under article

principal Act.

the conditions therein mentioned, sohowever that with effect from 1 st

January 2018, a person whose first entry in insurance under this Act

falls after the 16th of January 1979, shall be eligible to a Retirement

Pension or to an Increased Retirement Pension or to a National

Minimum Pension or to an Increased National Minimum Pension under

this Part.".

Immediately after sub-article (7) of article 59 of the Amendment of

article 59 of the

principal Act there shall be added the following new sub-article

principal Act.

"(8) Notwithstanding the provisions of this article, with

effect from 1 st January 2018, a pension paid under Part V shall be

reassessed also when the pensioner who reaches the age of 65 is

receiving a reduced pensioner’s rate due to a deficiency in the

average contributions, by considering those contributions paid by

the pensioner by virtue of an insurable occupation which occurs

after the pensionable age.".

In sub-paragraph (b) of sub-article (2) of article 68 of the Amendment of

principal Act the words "multi-disciplinary panel appointed under article

principal Act.

article 106(f)." shall be substituted by the words "multi-disciplinary

panel appointed under article 106(f):" and immediately thereafter

there shall be added the following new proviso

"Provided further to this sub-paragraph (b) and without

prejudice to the provisions of article 90, with effect from 1st

January 2018, where a person is in receipt of Social Assistance in

accordance with the provisions of article 30, and ceases to be so

entitled due to becoming entitled to an Increased Carer’s

Allowance, such person shall be entitled for the weekly payment

of an additional €8.15 for every other member of household as

Social Assistance.".

In sub-article (3) of article 69 of the principal Act the words

"the equivalent of the aforesaid national minimum wage." shall be

substituted by the words "the equivalent of the aforesaid national

minimum wage, sohowever that with effect from 1st January 2018, the

provisions of sub-article (3) shall cease to be applicable.".

In sub-article (1) of article 76 of the principal Act the

words "best considered to form part of the relative household." shall

be substituted by the words "best considered to form part of the

relative household:" and immediately thereafter there shall be added

the following new proviso

"Provided that with effect from 1st January 2018, the

payment of this allowance shall be paid to the parent who has the

effective care and custody, and with whom the child is residing.".

In the proviso to article 90A of the principal Act, the words

"in this article shall be upgraded to four-fifths:" shall be substituted by

the words "without prejudice to the provisions of this article shall be

upgraded to four-fifths, sohowever that with effect from 1 st January

2018, the aforementioned proportion in subparagraph (ii) above, shall

cease to be upgraded to four-fifths:".

The Second Schedule to the principal Act shall be

amended as follows

(a)

in sub-paragraph (b) of paragraph 4 in Part II thereof

immediately after the words "Milk Grant" there shall be added

the words ", Increased Carer’s Allowance";

(b)

immediately after sub-paragraph (g) of paragraph 4

in Part II thereof there shall be added the following new sub-

paragraph

"(h) In calculating the means for the

purposes of article 20 no account shall be taken of

net earnings derived by a self-occupied

homeworker, as defined in article 2, if such net

earnings do not exceed 35% of the National

Minimum Wage as is applicable to persons of

eighteen years of age or over as established by a

National Order issued under the Employment and

Industrial Relations Act.";

(c) immediately after paragraph 5 in Part III thereof

there shall be added the following new paragraph

"6. With effect from 1st January 2018, where a

person who is divorced or is married but legally or de facto

separated from the other spouse proves to the satisfaction

of the Director that he is paying an amount of money to his

spouse or to his former spouse as an integral part of their

separation or of their divorce, that amount of money shall

be deducted when the means of that person are

calculated."; and

(d) paragraph 1 in Part VI thereof shall be renumbered

as paragraph "1A" and immediately thereafter there shall be

added the following new paragraph

"1B. In calculating the means for the purposes of

article 30 no account shall be taken of net earnings

derived by a self-occupied homeworker, as defined in

article 2, if such net earnings do not exceed 35% of the

National Minimum Wage as is applicable to persons of

eighteen years of age or over as established by a National

Standard Order issued under the Employment and

Industrial Relations Act; and where the limit laid down in

the said proviso to paragraph 1(a) of Part II of this

Schedule is exceeded, the person making a claim for

Social Assistance shall be deemed not to be entitled to

such assistance.".

Sub-paragraph (a) of paragraph 3 of the Eleventh Amendment to

the Eleventh

Schedule to the principal Act shall be substituted as follows

Schedule of the

principal Act.

"(a) that the person has paid not less than two hundred and

fifty contributions, notwithstanding the provisions of this

schedule provided that with effect from 1st January 2018, the

minimum number of contributions required for a person who is

medically certified as terminally-ill shall be fifty contributions

only; and".

The Thirteenth Schedule to the principal Act shall be Amendment to

the Thirteenth

amended as follows

Schedule of the

principal Act.

(a) in paragraph (4) thereof the words "In the case of a

person born on or after the 1st January 1962" shall be

substituted by the words "In the case of a person born during the

calendar years 1962 to 1968";

(b) sub-paragraphs (a) and (b) of paragraph (5) thereof

shall be substituted by the following

"(5) In the case of a person born on or after the 1st

January 1969 the yearly average of the basic wage or

salary, or the net income or the net earnings, as the case

may be, during the best ten calendar years within the last

forty one calendar years immediately preceding his

retirement or invalidity in terms of this Act, as the case

may be, on which the required contribution has been paid

or deemed to have been paid in terms of this Act or if he

has been in employment or self-employment or has been

self-occupied for less than ten calendar years within the

last forty one calendar years, during any such number of

calendar months as may be the best in his case within the

said last forty one calendar years, as may be increased by

the applicable wage increases required by law to be

awarded generally in respect of each subsequent year of

each of the said last forty-one calendar years

Provided that for the purposes of this paragraph, in

the case of a self-occupied person who prior to the 1st

January 1996, was a gainfully occupied self-employed

person, his annual net income for each calendar year prior

to the aforementioned date shall be deemed to be as if it

were his net earnings.

(6) (a)

For the purposes of this Act, in the

case of a person born on or before the 31st December

1961 whose retirement occurs on or after the 1st January

2007, the basic wage or salary or the net income or the net

earnings as the case may be, and the resultant pensionable

income or any amount substituted therefor under the

provisions of this Act shall not exceed €16,207.78

increased by such sum that the Government may award as

a cost of living increase, in the rate of the National

Minimum Wage as is payable to persons of eighteen years

of age or over under the provisions of the Employment

and Industrial Relations Act, hereinafter in this paragraph

referred to as the "cost of living increase" as from the

effective date of such increase

Provided that in the case of a person born on or

before the 31st December 1951, the resultant pensionable

income including any such cost of living increase shall not

exceed the sum of €17,470.30

Provided further that in the case of a person born

during calendar years 1952 to 1961, the resultant

pensionable income including any such cost of living

increase shall not exceed the sum of €20,964.36.

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

person born on or after the 1st January 1962 whose

retirement occurs on or after the 1st January 2007, the

basic wage or salary or the net income or the net earnings

as the case may be, and the resultant pensionable income

or any amount substituted therefor under the provisions of

this Act shall not exceed

(i) €16,207.78 increased by such sum

that the Government awards as a cost of living

increase, in respect of the years 2007 to 2010 as

from the effective dates of such increases;

(ii) the sum referred to in paragraph (i)

increased as on the 1st January of each year,

between 2011 and 2013 by one third of the

difference between the sum referred to in

paragraph (i) and €20,964.36;

(iii) with effect from the 1st January

2014, €20,964.36 increased annually by such

sum as corresponds to seventy percent of the

percentage increase in the national average wage

for the previous calendar year as published by

the National Statistics Office established by

virtue of article 9 of the Malta Statistics

Authority Act, plus thirty percent of the inflation

rate as published by the said National Statistics

Office for the previous calendar year.".

PART VI

This Part amends the Duty on Documents and Transfers Act Amendments to

and it shall be read and construed as one with the Duty on Documents the

Documents and

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

Sub-article (3) of article 32 of the principal Act, including Amendment of

article 32 of the

the proviso thereto, shall be substituted by the following

principal Act.

"(3) Notwithstanding any other provision of this Act, no

duty shall be charged on the transfer of immovable property or

marketable securities

(i) between persons who are, or were formerly,

married to each other, when such assets are assigned

between them consequent to a consensual or judicial

separation or to a divorce between such persons

Provided that in such circumstances, the term

"immovable property" shall also include immovable

property owned by a company which is fully owned by any

or both spouses; or

(ii) between persons who are, or were formerly

married to each other, on the dissolution of the community

of acquests existing between them; or

(iii) between persons who are married to each

other, whether the community of acquests exists between

them or otherwise, on any transfer inter vivos of the

ordinary residence or part thereof, of any or both of the

spouses; or

(iv) on the death of one spouse, on any partition

of any property held in common between spouses, whether

it is community property or otherwise, between the

surviving spouse and the heirs of the deceased spouse.".

PART VII

(1)

This Part amends the Motor Vehicles Registration

and Licensing Act, and shall be read and construed as one with the

Motor Vehicles Registration and Licensing Act, hereinafter in this

Part referred to as "the principal Act".

(2)

All the provisions in this Part shall be deemed to have

come into force on the 1 st January, 2018.

Article 2 of the principal Act shall be amended as follows

(a)

immediately after the definition of "hybrid vehicle"

there shall be added the following definition

"hydrogen fuel cell electric vehicle" means, for the

purposes of this Act, an electric vehicle which uses a

hydrogen fuel cell, instead of a battery, or in combination

with a battery or supercapacitor, to power its on-board

electric motor;";

(b) immediately after the definition of "person residing

in Malta" there shall be added the following definition

"plug-in hybrid electric vehicle" means, for the

purposes of this Act, a hybrid electric vehicle that uses

rechargeable batteries, or another energy storage device,

that can be recharged by plugging it into an external source

of electric power having a battery autonomy (or battery

range) of not less than 30km;";

(c)

immediately after the definition of "racing vehicle"

there shall be added the following definition

"range extender electric vehicle" means, for the

purposes of this Act, an electric vehicle which has a plug-

in battery pack and electric motor, as well as a small

internal combustion engine having battery autonomy of not

less than 40km prior to switching to the range-extender

mode;".

Immediately after Category I of the Second Schedule to Amendment of

Second

the principal Act there shall be added the following

Schedule to the

principal Act.

"Category J: Electric and autogas M1, M2 and M3 motor

vehicles and M1, M2 and M3 hydrogen fuel cell electric

vehicles, plug-in hybrid electric vehicles and range extender

electric vehicles

1. electric vehicles ……………………………… 0%

hydrogen fuel cell electric vehicles ………….. 0%

2. plug-in hybrid electric vehicles ……………… 0%

3. range extender electric vehicles ……………… 0%

4.

5. vehicles propelled solely with an autogas fuelling system

……………..............................................................0%".

The Fourth Schedule to the principal Act shall be amended Amendment of

Fourth Schedule

as follows

to the principal

Act.

(a)

Part 11 thereof shall be deleted and substituted by

the following

"11. For the use of electric vehicles including

motor cycles, battery driven electric mopeds, hydrogen

fuel cell electric vehicles, plug-in hybrid electric vehicles

and range extender electric vehicles

Age of vehicle from

Circulation

date of first registration

licence fee

Less than 5 years

5 years or more

€10"; and

(b)

Part 14 thereof shall be deleted.

PART VIII

(1)

This part amends the Income Tax Management

Act, and shall be read and construed as one with the Income Tax

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

(2)

The provisions of this Part shall come into force as

(a)

article 54 as from the year of assessment 2015; and

(b)

articles 55 and 62(b) as from the year of assessment

2019.

Paragraph (c) of sub-article (2) of article 10 of the

principal Act shall be amended as follows

(a)

the present provisions of sub-paragraph (iii) shall be

renumbered as sub-paragraph (iv); and

(b) in sub-paragraph (ii), the words "paragraph (a); and"

shall be substituted by the words "paragraph (a);", and

immediately thereafter the following new sub-paragraph (iii)

shall be added

"(iii) any tax credit or relief claimed and due in

accordance with the provisions of any other law and

relating to the chargeable income computed under

paragraph (a)

Provided that notwithstanding anything in any

enactment, with effect from year of assessment 2015 no

account shall be taken of any requirement imposed on any

company in terms of the Business Promotion Regulations

to set-off any particular tax credits or any balance thereof

granted in terms of the Business Promotion Regulations

after the application of any other tax credits available to

that company in terms of the Business Promotion Act and

the Business Promotion Regulations, such that the

company shall be entitled to determine the order in which

such tax credits or part thereof shall be claimed for set-off

against its income; and".

In the proviso to article 17 of the principal Act, the words Amendment of

"to make a request referred to in article 34(2)" shall be substituted by article

principal Act.

the words "to receive the accounts referred to in articles 33 and 34".

In the second proviso of paragraph (a) of sub-article (4) of Amendment of

article 19 of the principal Act, the words "graduates of a Post- article

principal Act.

Secondary Institution" shall be substituted by the words "individuals in

possession of educational qualifications as may be prescribed" and the

words "of graduating" shall be substituted by the words "of obtaining

the said qualifications".

Article 23 of the principal Act shall be amended as Amendment of

article 23 of the

follows

principal Act.

(a)

in sub-article (4) thereof, immediately after the

words "the tax which should have been deducted or paid" there

shall be added the words "together with interest, which shall be

charged as provided in article 44(2A)";

(b) in sub-article (5) thereof, immediately after the

words "the tax which should have been deducted or remitted"

there shall be added the words "together with interest" and for

the words "and the additional tax so imposed" shall be

substituted by the words "and any interest and additional tax so

imposed";

(c)

in sub-article (7) thereof, immediately after the

words "the tax which should have been deducted or remitted"

there shall be added the words "together with interest"; and

(d) in sub-article (11) thereof, the words "assets of the

employer" shall be substituted by the words "assets of the

employer (including the assets of a principal officer in the case

of a body of persons)".

In sub-article (1) of article 29 of the principal Act, after Amendment of

the words "either personally" there shall be added the words "or by article

principal Act.

electronic means to his verified email address".

The proviso to sub-article (2A) of article 31 of the Amendment of

article 31 of the

principal Act shall be substituted by the following

principal Act.

"Provided that, notwithstanding any other provision of this

Act, if the adjustment form is filed later than three months from

the date of the notification of the determination, interest shall

become payable by the Commissioner on a repayment of tax

that may result to be due in terms of the adjustment only if the

repayment is paid later than one month from the filing of the

said adjustment form and shall run from the expiration of the

said period of one month.".

Sub-article (7) of article 34 of the principal Act shall be

60. deleted.

Is-subartikolu (7) tal-artikolu 34 tal-Att prinċipali għandu Emenda tal-

artikolu 34 tal-

jiġi mħassar.

Att prinċipali.

In sub-article (2) of article 40 of the principal Act,

immediately after the words "rules made thereunder." there shall be

added the following words "Upon the lapse of the period of two days

mentioned in the articles referred to in this sub-article the

Commissioner shall be entitled to register in the public registry or

land registry, as the case may be, a note of privilege for the amount

demanded in the judicial act which note of privilege shall be

registered by any advocate or notary.".

Article 42 of the principal Act shall be amended as

follows

(a)

paragraph (e) of sub-article (3) shall be deleted.

(b)

sub-article (4) shall be amended as follows

(i) in paragraph (a), the words "not later than the

30th June of the year" shall be substituted by the words

"not later than the 30th April of the year"; and

(ii) in paragraph (c), the words "not later than the

30th June of the year" shall be substituted by the words

"not later than the 30th April of the year".

In paragraph (d) of sub-article (2B) of article 44 of the

principal Act, the words "or in article 23(4) of this Act" shall be

deleted.

PART IX

(1)

This Part amends the Excise Duty Act and it shall

be read and construed as one with the Excise Duty Act, hereinafter in

this Part referred to as "the principal Act".

(2) The provisions that amend Schedule Five H shall come

into force on the 9th October 2017.

Article 2 of the principal Act shall be amended as follows: Amendment of

article 2 of the

principal Act.

(a) the definition "registered consignor" shall be

substituted by the following new definition

" "registered consignor" means a natural or legal

person authorised by the Commissioner, in the course of

his business and under the conditions fixed by the

Commissioner, to only dispatch goods subject to excise

duty which are subject to duty suspension upon their

release for free circulation in accordance with Article 79 of

Regulation (EEC) No. 2913/92 as amended or

substituted;";

(b) immediately after the substituted definition

"registered consignor" there shall be added the following new

definition

" "registered merchant" means a physical or legal

person authorised by the Commissioner to dispatch and, or

receive goods subject to excise duty as mentioned in

Schedule Five A, Five B, Five C, Five D, Five E, Five F,

Five G and Five H;";

(c) the definition in the Maltese version "persuna li

tikkonsenja reġistrata" shall be deleted; and

(d) in the definition "excise officer" immediately after the

words "of the provisions of this Act" there shall be added the

words "as authorised for this purpose".

In paragraph (c) of sub-article (1) of article 10 of the Amendment of

principal Act immediately after the words "tax warehouse" there shall article

principal Act.

be added the words "correct and precise" and immediately after the

words "product movements" there shall be added the words "which

truly reflect the actual stock that is physically present in the tax

warehouse".

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

article 10A of

the principal

Act.

(a) in sub-article (1) thereof, for the words "consignee

may be a professional trader", there shall be substituted the

words "consignee shall be a professional trader";

(b) in sub-article (2) thereof, for the words "Such trader

may,", there shall be substituted the words "Such trader shall,";

(c) in the Maltese text of sub-article (3) thereof, for the

words "negozjant reġistrat" there shall be substituted the words

"destinatarju reġistrat";

(d) in paragraph (b) of sub-article (3) thereof, for the

words "at the end of the movement", there shall be substituted

the words "at the end of the transaction"; and

(e)

in the proviso of sub-article (3) thereof, for the words

"a single consignor and a specified period of time or to a single

movement. The Commissioner may limit the authorisation for

one movement." there shall be substituted the words "a single

registered consignor and a specified period of time or to a single

transaction. The Commissioner may limit the authorisation to one

transaction.".

Immediately after article 10A of the principal Act, there

shall be added the following new articles

10B. (1) Notwithstanding the provisions of article

10, a registered consignor may be a professional trader

without the status of authorized warehouse keeper. The

registered consignor may, in the course of his business,

dispatch goods which are under duty suspension or goods

which are in free circulation.

(2) The registered consignor shall, before starting to

dispatch the objects, request to be registered by the

Commissioner.

(3) Registered consignor shall observe the following

requirements

(a)

before dispatch of the excise goods, he

shall guarantee the payment of excise duty, under the

conditions fixed by the Commissioner;

(b) at the end of the transaction, he shall

enter into his accounts excise goods dispatched under

an excise duty suspension arrangement;

(c)

consent to all monitoring and stock

checks enabling the Commissioner to verify that the

goods have actually been dispatched

Provided that where a registered

consignor dispatches excise goods only occasionally,

the authorisation granted by the Commissioner shall

be limited to a specified quantity of excise goods, a

single consignor and a specified period of time or a

single transaction. The Commissioner may limit the

authorisation to one transaction.

10C. (1) Notwithstanding the provisions of article

10, the registered merchant must be a professional trader

without the status of authorized warehouse keeper. This

trader may, in the course of his business, dispatch and, or

receive goods subject to excise duty, mentioned in Schedule

Five A, Five B, Five C, Five D, Five E, Five F, Five G and

Five H.

(2) Such a merchant shall, before starting to dispatch

or to receive the objects, request to be registered by the

Commissioner.

(3) A registered trader must observe the following

requirements

(a) before dispatch or receipt of the excise

goods, he shall guarantee the payment of excise duty,

under the conditions fixed by the Commissioner;

(b) at the end of the transaction, he shall

enter into his accounts the excise goods that would

have been received or dispatched;

(c)

consent to all monitoring and stock

checks enabling the Commissioner to verify that the

goods have actually been dispatched or received

Provided that where a registered merchant

receives excise goods only occasionally, the

authorisation granted by the Commissioner shall be

limited to a specified quantity of excise goods, a

single consignor and a specified period of time or a

single transaction. The Commissioner may limit the

authorisation to one transaction.".

Sub-article (1) of article 16 of the principal Act shall be Amendment of

amended as follows

(a)

immediately after the first proviso thereof, there

shall be added the following new proviso

"Provided that in the case of conviction for an

offence related to manufactured tobacco mentioned in the

Third Schedule to this Act, the offender shall be liable to a

fine (multa) of not less than three thousand five hundred

euro (€3,500) and not more than twenty five thousand euro

(€25,000):";

(b) in the second proviso, as amended by the previous

sub-paragraph, immediately after the word "Provided" there

shall be added the word "further";

(c)

immediately before the second proviso (as in the

current version in the principal Act) there shall be added the

following new proviso

"Provided further that in the case of a conviction

relating to the evasion or attempted evasion of excise duty

related to manufactured tobacco mentioned in the Third

Schedule to this Act, the offender shall be liable to a fine

(multa) equivalent to three times the excise duty due on

goods or five times the endangered duty, whichever is the

lesser, but in any case not less than four thousand euro

(€4,000) which fine may exceed twenty-five thousand euro

(€25,000):"; and

(d) in the second proviso (as in the current version in the

principal Act) for the words "of the first proviso of this article"

there shall be substituted the words "provided for in the relevant

provisos of this article as the case may be,".

Article 16A of the principal Act shall be amended as

(a)

sub-article (1) thereof shall be amended as follows

(i) in the first proviso thereof immediately after

the words "Seventh Schedule" there shall be added the

words "except for manufactured tobacco mentioned in the

Third Schedule to this Act,";

(ii) immediately after the first proviso thereof

there shall be added the following new proviso

"Provided also that when the excise goods related

to the irregularity mentioned in this article are

manufactured tobacco mentioned in the Third

Schedule to this Act, then a penalty equivalent to

three times the excise duty endangered is to be paid,

which penalty shall not be less than one thousand

five hundred euro (€1,500), and the forfeiture

provided for in this article shall also take place:"; and

(b)

sub-article (2) thereof shall be amended as follows

(i) for the words "increased by 25%." there shall

be substituted the words "increased by 25%:"; and

(ii) immediately after there shall be added the

following new proviso

"Provided that in the case of irregularities related

to manufactured tobacco mentioned in the Third

Schedule to the Act, when the circumstances

mentioned in this sub-article take place, the penalty

due for this second agreement would be three times

the duty evaded but not less than one thousand five

hundred euro (€1,500) increased by 10%, and the

penalty due for the third agreement or more would be

three times the duty evaded but not less than one

thousand five hundred euro (€1,500), increased by

25%.".

Immediately after article 16A of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

" Out of court

16B. In case of an out of court agreement under

agreement.

article 16A of this Act, when the law provides for the

lowest and the highest amount of the fine (multa) that

may be so imposed by the Court, the sum that shall be

paid as a result of that agreement, shall be a sum which

is equivalent to the said lowest amount increased by

half the difference between the said lowest and highest

amounts.".

Article 19 of the principal Act shall be amended as Amendment of

article 19 of the

follows

principal Act.

(a) in paragraph (b) of sub-article (1) thereof, for the

words "are kept or concealed on or at any premises, place or

vehicle, aircraft or vessel issue a search warrant.", there shall be

substituted the words "are kept or concealed in a dwelling, issue

a search warrant."; and

(b) in sub-article (2) thereof, for the words "the

premises or other place or vehicle, aircraft or vessel named or

specified in the warrant, to search such premises, place or

vehicle, aircraft or vessel, to examine", there shall be substituted

the words "accompanied or alone in a dwelling named or

specified in the warrant to search such dwelling, to examine

every item held therein, to inspect".

In article 24 of the principal Act, for the words "offence Amendment of

under article 16(1) or article 17" there shall be substituted the words article

principal Act.

"offence against this Act and its subsidiary legislation".

In article 29A of the principal Act, for the words "refuse to Amendment of

grant or withdraw an authorization from a person to act as a registered article

the principal

excise trader or authorized warehouse keeper.", there shall be Act.

substituted the words "refuse to grant or withdraw an authorisation

from a person to act as a registered consignee, registered consignor,

registered merchant or authorized warehouse keeper.".

The First Schedule to the principal Act shall be amended

as follows

(a)

in the column "First Column List of Excise Goods"

thereof, for the item "Ammunition Cartridges to the extent as

shown in the relevant schedule to this Act." there shall be

substituted the following item

"Waters to the extent as shown in the relevant

schedule to this Act."; and

(b) the words "Waters and" shall be deleted in the item

"Waters and non-alcoholic beverages to the extent as shown in

the relevant schedule to this Act.".

The Fourth Schedule to the principal Act shall be amended

as follows

(a) in the column "Description of excise goods" in the

heading "Gas Oil falling within CN Codes 2710.19.43 to

2710.19.48 or 2710.20.11 to 2710.20.19 and blends of the

foregoing with Biodiesel, excluding Gas Oil or Gas Oil blended

with Biodiesel, with a sulphur content not exceeding 0.1%

sulphur by weight if used for heating purposes", the subheading

"If used by pleasure sea-craft for direct voyages to destinations

outside the European Union" shall be deleted;

(b)

in the column "Rate of Excise Duty" in this deleted

subheading, the figure "0" shall be deleted;

(c)

in the heading referred to in paragraph (a) above,

immediately after the subheading "If used for fishing purposes

as laid down by Department of Fisheries", there shall be added

the following new subheading

"If used by rescue vessels, or vessels which render

assistance for rescue purposes at sea"; and

(d) in the column "Rate of Excise Duty" in the new

heading, there shall be added the figure "0".

For Schedule Five C to the principal Act there shall be

substituted the following

"SCHEDULE FIVE C

WATERS

Description of excise goods

Rate of Excise Duty

Waters falling under CN Heading

€5 per 1000 litres".

In Schedule Five E to the principal Act the item

Amendment of

Schedule Five E

to the principal

"Waters falling under CN Heading €5 per 1000 litres"

Act.

shall be deleted.

In the Schedule Five H to the principal Act, in the column Amendment of

"Rate of Excise Duty" relating to the item "Bars and rods, hot-rolled, Schedule

to the principal

in irregularly wound coils of iron or non-alloy steel, with Act.

indentations, ribs, grooves or other deformations produced during the

rolling process falling under HS Code 7213 10 00 – " for the words

"€5 per 1000 kgs" there shall be substituted the words "€15 per 1000

Part D of the Sixth Schedule to the principal Act shall be Amendment of

Part D of the

amended as follows

Sixth Schedule

to the principal

Act.

(a) regulation 34 thereof shall be substituted by the

following

"34. Requests for the provisioning of either duty-

free or duty-paid fuel for ships and commercial yachts

shall be made by authorised persons to the Commissioner

at the Seaport Customs Office, where the documents

entitled Stores Authority (STA1) and Statement to the

Customs Authorities (SCA1), found in the Annex to these

regulations are to be presented.";

(b) regulation 35 thereof shall be substituted by the

following

"35. For the cases mentioned in regulation 34 the

fuel is to be fiscally marked as provided for in regulation

17."; and

(c)

in regulation 36 thereof, for the words "When the

documents are processed either at the Baggage Room or at the

Yacht Marina, as the case may be,", there shall be substituted the

words "When the documents are processed from the Seaport

Customs Office,".

The Seventh Schedule to the principal Act shall be

amended as follows

(a) in the heading thereof immediately after the words

"Article 16" there shall be added the words "and Article 16A";

(b) in the item thereof of the Maltese version "-

Manufactured tobacco regolat bit-Tieni Skeda li tinsab ma’ dan

l-Att;" the words "Tieni Skeda" shall be substituted by the

words "Tielet Skeda"; and

(c) the item "- Ammunition cartridges regulated by

Schedule Five C to this Act" shall be deleted.

In the Eighth Schedule to the principal Act immediately

after the item "Pneumatic Tyres regulated by Schedule Five B to this

Act;" there shall be added the following new item "Waters regulated

by Schedule Five C to this Act;".

PART X

This Part amends the Fiscal Responsibility Act and it shall

be read and construed as one with the Fiscal Responsibility Act,

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

In paragraph (f) of article 3 of the principal Act the words

"set out in the fiscal strategy" shall be substituted by the words "set out

in the Medium Term Fiscal Strategy".

Article 13 of the principal Act shall be amended as

follows

(a) in paragraph (d) of sub-article (3) thereof the words

"in the fiscal strategy" shall be substituted by the words "in the

Medium Term Fiscal Strategy";

(b) in paragraph (e) of sub-article (3) thereof

immediately after the words "on the execution of the budget"

there shall be added the words "including an ex post evaluation

of macroeconomic and fiscal forecasts"; and

(c)

in sub-article (6) thereof the words "its fiscal

strategy and the annual budget" shall be substituted by the

words "its Medium Term Fiscal Strategy and the annual

budget".

Article 15 of the principal Act shall be amended as Amendment of

article 15 of the

follows

principal Act.

(a) in sub-article (1) thereof, the words "the Medium

Term Fiscal Policy Statement and the Fiscal Policy Strategy"

shall be substituted by the words "the Medium Term Fiscal

Strategy made up of a Medium Term Fiscal Policy Statement

and the Fiscal Policy Strategy";

(b) in sub-article (2) thereof, the words "and the Fiscal

Policy Strategy Statement" shall be deleted;

(c)

in paragraph (h) of sub-article (4) thereof

immediately after the words "an ex post evaluation" there shall

be added the words ", based on objective criteria,";

(d)

sub-paragraph (ix) of paragraph (a) of sub-article

(6) thereof shall be substituted by the following

"(ix) sensitivity analysis based on objective

criteria, taking account of possible changes in

macroeconomic conditions, including growth and interest

rates. The sensitivity analysis shall be guided by the

performance of past forecasts and shall endeavour to take

into account relevant risk scenarios.";

(e) in paragraph (e) of sub-article (6) thereof, for the

words "a fiscal risk statement, including any commitments"

there shall be substituted the words "a fiscal risk statement,

based on the independent assessment by the Fiscal Council of

the official forecasts produced by virtue of article 13(3)(a) and

taking into account the ex post assessment of the Fiscal Council

produced by virtue of article 13(3)(e), including any

commitments";

(f)

paragraphs (f) and (g) of sub-article (6) thereof shall

be re-numbered as paragraphs (g) and (h) respectively;

(g) immediately after paragraph (e) of sub-article (6)

thereof, there shall be added the following new paragraph

"(f) an account of current and future actions to be

taken following any identification of significant bias in

macroeconomic forecasts pursuant to sub-article (4)(h);";

and

(h) in sub-article (8) thereof immediately after the words

"fiscal strategy and compliance" there shall be added the word

"with".

Sub-article (2) of article 16 of the principal Act shall be

amended as follows

(a) paragraphs (g) and (h) thereof shall be renumbered

as paragraphs (h) and (i) respectively and immediately after

paragraph (f) there shall be added the following new paragraph

"(g) a sensitivity analysis based on objective

criteria, of the budgetary targets taking account of possible

changes in macroeconomic conditions, including growth

and interest rates. The sensitivity analysis shall be guided

by the performance of past forecasts and shall endeavour

to take into account relevant risk scenarios;"; and

(b) in paragraph (i) thereof, as renumbered, for the words

"current recommendations to the Member State concerned" there

shall be substituted the words "current recommendations to

Malta".

Article 17 of the principal Act shall be amended as

(a) sub-article (1) thereof shall be substituted by the

following

"(1) The Government shall present an annual

Budget to the House that is consistent with the fiscal

responsibility principles, the fiscal rules, the Medium Term

Fiscal Strategy and any other requirements in this Act,

including a sensitivity analysis as specified in article

16(2)(g). The Prime Minister and Minister for Finance

shall sign a statement attesting to such consistency which

shall be presented to the House with the Annual Budget.";

(b) in sub-article (4) thereof the words "with

Government’s Fiscal Strategy" shall be substituted by the words

"with Government’s Medium Term Fiscal Strategy";

(c) in sub-article (5) thereof the words "the fiscal

strategy" shall be substituted by the words "the Medium Term

Fiscal Strategy"; and

(d) in sub-article (7) thereof the words "the fiscal strategy"

shall be substituted by the words "the Medium Term Fiscal

Strategy".

In sub-article (10) of article 39 of the principal Act, for the Amendment of

words "and in the medium term fiscal strategy." there shall be article

principal Act.

substituted the words "and in the Medium Term Fiscal Strategy. Data

should reflect actual data or estimates based on the most recently

available data where appropriate.".

In article 40 of the principal Act the words "the fiscal Amendment of

strategy", wherever they occur, shall be substituted by the words "the article

principal Act.

Medium Term Fiscal Strategy".

In article 41 of the principal Act the words "the fiscal Amendment of

strategy", wherever they occur, shall be substituted by the words "the article

principal Act.

Medium Term Fiscal Strategy".

PART XI

This part amends the Arbiter for Financial Services Act, Amendments to

and shall be read and construed as one with the Arbiter for Financial the

Financial

Services Act, hereinafter referred to as "the principal Act".

Services Act.

In the definition "provditur tas-servizzi finanzjarji" of Amendment of

article 2 of the Maltese version of the principal Act, the words article

principal Act.

"Provditur tas-servizzi finanzjarji li kellu l-liċenza sospiża jew irtirata

mill-awtorità kompetenti, iżda li kien liċenzjat matul il-perjodu li fih

ikun sar l-ilment minn klijent eliġibbli magħmul lill-Arbitru, għandu

jitqies bħala li jaqa’ taħt it-tifsira ta’ provditur tas-servizzi finanzjarji;"

shall be substituted by the words "Provditur tas-servizzi finanzjarji li

kellu l-liċenza sospiża jew irtirata mill-awtorità kompetenti iżda li kien

liċenzjat matul il-perjodu li fih seħħew il-fatti li taw lok għall-ilment

minn klijent eliġibbli magħmul lill-Arbitru, għandu jitqies bħala li jaqa’

taħt it-tifsira ta’ provditur tas-servizzi finanzjarji;".

In the first proviso immediately after paragraph (e) in sub- Amendment of

article (3) of article 19 of the principal Act for the words "by article article

principal Act.

25(3)(b)" there shall be substituted the words "by article 22(3)(c)".

Immediately after article 20 of the principal Act, there Addition of new

articles to the

shall be added the following new articles

principal Act.

20A. Without prejudice to article 113 of the

"Pension.

Constitution of Malta, the holder of the office of

Arbiter for Financial Services shall be entitled to a

pension equivalent to the pension given to Members

of the Judiciary under the Members of the Judiciary

(Pensions) Act

Provided that the holder of the office of

Arbiter for Financial Services shall be eligible to

receive the pension referred to herein only on

reaching retirement age and on condition that the said

individual would have served a full term of office

Provided further that the Arbiter for

Financial Services shall forfeit the right to a pension if

he or she is removed from office in accordance with

the provisions of Chapter VIII or Chapter VII,

respectively, of the Constitution of Malta due to

proved misbehaviour.

20B. There shall be charged on and paid out of

the Consolidated Fund all such sums of money as may

from time to time be granted by way of pension to the

holder of the office of Arbiter for Financial

Services.".

Passed by the House of Representatives at Sitting No. 95 of the 20th

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€3.60