ACT No. IX of 2025 AN ACT to implement Budget Measures for the Financial Year 2025 and other administrative measures.

I assent.

(L.S.)

MYRIAM SPITERI DEBONO

President

17th April, 2025

ACT No. IX of 2025

AN ACT to implement Budget Measures for the Financial Year 2025

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, 2025.

PART I

PRELIMINARY

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

force on the 1st January, 2025.

For the purposes of this Part, "revenue" shall have the same

meaning as assigned to it in article 2 of the Public Finance

Management 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 one

billion and five hundred million euro (€1,500,000,000).

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

responsible 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 approve.

Any money borrowed under the authority of this Part shall be

appropriated and applied for the purpose of

(a) meeting excess expenditure over revenue incurred in

the Consolidated Fund for the year 2025;

(b) redeeming registered stocks, debt instruments and

foreign loan which shall be due for redemption during the year

2025;

(c)

contributing funds in the sinking funds; 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

AMENDMENTS TO THE CODE OF ORGANIZATION AND

CIVIL PROCEDURE

This Part amends the Code of Organization and Civil Amendments to

Procedure and it shall be read and construed as one with the Code of the

Organization

Organization and Civil Procedure, hereinafter in this Part referred to as and

Procedure.

the "Code".

In paragraph (i) of article 253 of the Code the words "Private Amendment of

Residential Leases." shall be substituted by the words "Private article

the Code.

Residential Leases;" and immediately thereafter there shall be added

the following new paragraph

"(j) uniform instrument permitting enforcement in

accordance with Council Directive 2010/24/EU of 16 March

2010 concerning mutual assistance for the recovery of claims

relating to taxes, duties and other measures.".

PART III

AMENDMENTS TO THE CUSTOMS ORDINANCE

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

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

Ordinance.

Part referred to as the "Ordinance".

Sub-article (5) of article 72 of the Ordinance shall be Amendment of

article 72 of the

substituted by the following new sub-article

Ordinance.

"(5)(a) The goods seized in accordance with this

Ordinance shall be deemed to be forfeited ipso jure and the

Commissioner may dispose of them according to law, unless the

person from whom the goods have been seized, or the owner, or

any person authorised by him within thirty (30) days from the

date of the seizure note, gives a notice in writing to the

Commissioner, requesting that the seized goods are returned to

him or indicating that he intends to demand that they are

returned, and within thirty (30) days from such notice, initiates

the necessary proceedings before the Administrative Review

Tribunal by means of an application against the Commissioner.

(b) The Commissioner shall have thirty (30) days from

notification to reply to the application before the Administrative

Review Tribunal. The Tribunal shall hear the application

expeditiously.

(c) In default of such contestation in terms of paragraph

(a), the claim on the seized object shall be deemed to be

abandoned

Provided that where a seizure is made in accordance

with this Ordinance and no contestation has been made by the

person from whom the goods have been seized, or by the owner,

or any person authorised by him, for the purposes of this article,

in case of an acquittal by the competent Court as provided for in

article 66, which has become a res judicata, the contestation

process as provided for in paragraph (a) may be availed of within

thirty (30) days from the date of the judgement becoming a res

judicata. In default of such contestation, the claim on this good

shall be deemed to be abandoned

Provided further that the preceding proviso shall not

apply to the confiscation of any good which is illegal or

prohibited by virtue of any law and to the confiscation of any

restricted good unless such restrictions have been observed.".

PART IV

AMENDMENTS TO THE INCOME TAX ACT

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

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

Part referred to as the "principal Act".

(2) (a) Articles 13 and 15 of this Act shall be applicable as

from the year of assessment 2026;

(b) article 14 of this Act shall be applicable as from the year of

assessment 2025; and

(c)

article 16 of this Act shall be applicable as from 1st January

2025.

Immediately after paragraph (vi) of the proviso to paragraph

(c) of sub-article (4) of article 5A of the principal Act, there shall be

added the following new paragraph

"(vii) where the property has been owned and occupied by

the transferor and his spouse as their residence for a period of at

least three (3) years and, as a consequence of a divorce or a de

jure or de facto separation, one (1) of the spouses ceases to

occupy the property, the property shall only be treated as having

been vacated if and when the other spouse also ceases to occupy

the property as his sole ordinary residence;".

Immediately after paragraph (m) of sub-article (1) of article Amendment of

14 of the principal Act there shall be added the following new article

principal Act.

"(ma) any expenditure of a capital nature incurred on or

after 1st January 2025 by a person carrying on a trade, business,

profession or vocation as consideration for the acquisition of a

business permit or a concession, or a commercial lease, where

the business permit or the concession or the commercial lease in

question is used or employed in the production of income

chargeable to tax in accordance with article 4(1)(a)

Provided that

(i) in this paragraph, and subject to the other

provisions thereof

"business permit" means a permit to carry on or

operate a business that is issued by a public authority

in accordance with any applicable law and it shall be

deemed to have been acquired by a person if and

when such person is registered as the holder thereof

with the relevant public authority;

"concession" means the privilege to carry on a

business activity granted by a public authority that

has exclusive rights over such activity;

"commercial lease" means the lease of a

commercial going concern (twellija) or the lease of

immovable property for the purpose of carrying

therein a trade, business, profession or vocation and

includes a sub-lease of a commercial lease;

"public authority" means the government, a

government ministry, department or government

agency, or any other entity in which the government

has, directly or indirectly, a controlling interest;

(ii) the deduction shall not include any sum paid

for, or attributable to the outright acquisition of a business

or a business goodwill, or rights in accordance with an

emphyteutical concession, or any intellectual property or

rights to which paragraph (m) applies, or any other tangible

or intangible asset other than the business permit, the

concession or the commercial lease in question;

(iii) no deduction shall be allowed in respect of the

acquisition of a permit, concession or lease for an

indefinite duration or for a duration of more than fifteen

(15) years;

(iv) the deduction shall only be allowable if the

acquisition in question, including the payment of the

consideration, results by means of a document in writing;

(v) the deduction shall be spread in equal amounts

over a period of fifteen (15) years or over the period, if

shorter, for which the permit or the concession or the lease

has been acquired by the person claiming such deduction;

(vi) where the duration of the business permit or the

concession or the commercial lease in question may be

extended or renewed at the option of the person acquiring

them or without the requirement for a payment of a capital

nature by way of a further consideration, the periods for

which they may be so extended or renewed shall be

deemed to be part of their duration, and the provisions of

sub-paragraphs (iii) and (v) shall apply accordingly;

(vii) when, during the year immediately preceding a

year of assessment, a person who had acquired a business

permit or a concession or a commercial lease transfers,

assigns or cedes that permit, concession, or lease, or

sublets the leased property in question, or no longer uses or

employs that permit, concession or lease in the production

of income chargeable to tax in terms of article 4(1)(a), he

shall not remain entitled to claim any further deduction in

accordance with this paragraph, as from that year of

assessment, in respect of such permit, concession or lease

even though he may not have yet availed himself of the full

deduction which otherwise may be granted in terms of this

paragraph;

(viii) when a person who has claimed a deduction

under this paragraph transfers the permit, concession or

lease in question, any deduction that he may be entitled to

claim in respect of the price of the acquisition ("the cost of

acquisition deduction") under the relevant provisions of

this Act in the determination of the tax chargeable on such

transfer or on the gains or profits derived therefrom, shall

be reduced by the total amount that he has claimed as a

deduction in terms of this paragraph in respect of the said

permit, concession or lease, but the reduction shall not

exceed the price of the acquisition deduction;

(ix) no deduction shall be allowable under this

paragraph in respect of the acquisition of a business permit,

concession or commercial lease from a related party and

for this purpose

-

two (2) individuals shall be deemed as

related parties if they are related within the degrees

referred to in article 5A(4)(a)(i);

-

an individual and a company or other

legal person shall be treated as related parties if such

individual holds, directly or indirectly, alone or

together with any other related party or parties, more

than twenty-five percent (25%) of the shares or

voting rights or interest in such company or other

legal person;

-

two (2) legal persons shall be deemed to

be related parties if more than twenty-five percent

(25%) of the shares or voting rights or interest in

each of those legal persons are held, directly or

indirectly, by the same persons;

(x) capital expenditure incurred as consideration

for the extension, renewal or modification of the terms and

conditions of the acquisition of a business permit,

concession or commercial lease shall be allowable in

accordance with and subject to the provisions thereof to the

same extent and in the same manner as if the said

extension, renewal or modification constituted a fresh

acquisition;

(xi) the Minister may by rules modify and increase

the conditions and limitations to the right to a deduction

under this paragraph and may modify the manner in which

the deduction may be claimed.".

Paragraph (b) of sub-article (1) of article 14B of the principal Amendment of

article 14B of

Act shall be substituted by the following new paragraph

the principal

Act.

"(b) six thousand five hundred euro (€6,500) in respect of

each child who attended such secondary school, or four thousand

six hundred euro (€4,600) in respect of each child who attended

such primary school, or three thousand five hundred euro

(€3,500) in respect of each child who attended such

kindergarten:".

Immediately after article 22A of the principal Act there shall

be added the following new article

The Minister responsible for finance may make

regulations for the charging and levying on an elective

basis of a tax higher than that established in relation to the

profits of Malta entities as defined in such regulations, and

may, in particular, by such regulations, provide for

(a) the scope, applicability and amount of

such tax;

(b) manner in which the tax due under this

article shall be calculated, paid and collected and the

obligations in respect of the payment of such tax; and

(c) such other conditions and consequences

in relation to the application of such tax.".

15. Article 56 of the principal Act shall be amended as follows

(a)

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

(i) sub-paragraphs (i), (ii), (iii), (iv) and (v) of

paragraph (a) thereof shall be substituted by the following

new sub-paragraphs

"(i) where the chargeable income does not

exceed €15,000, the tax shall be determined by

multiplying the chargeable income by 0%;

(ii) where the chargeable income exceeds

€15,000 but is less than €23,000, the tax shall be

determined by multiplying the chargeable income by

15% and then subtracting €2,250 from the result;

(iii) where the chargeable income exceeds

€23,000 but is less than €60,000, the tax shall be

determined by multiplying the chargeable income by

25% and then subtracting €4,550 from the result;

(iv) where the chargeable income exceeds

€60,000, the tax shall be determined by multiplying

the chargeable income by 35% and then subtracting

€10,550 from the result:";

(ii) sub-paragraphs (i), (ii), (iii), (iv) and (v) of

paragraph (b) thereof shall be substituted by the following

new sub-paragraphs

"(i) where the chargeable income does not

exceed €12,000, the tax shall be determined by

multiplying the chargeable income by 0%;

(ii) where the chargeable income exceeds

€12,000 but is less than €16,000, the tax shall be

determined by multiplying the chargeable income by

15% and then subtracting €1,800 from the result;

(iii) where the chargeable income exceeds

€16,000 but is less than €60,000, the tax shall be

determined by multiplying the chargeable income by

25% and then subtracting €3,400 from the result;

(iv) where the chargeable income exceeds

€60,000, the tax shall be determined by multiplying

the chargeable income by 35% and then subtracting

€9,400 from the result:";

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

the words "and not gainfully occupied, or if gainfully

occupied did not earn income in excess of €3,400," shall be

deleted, and sub-paragraphs (i), (ii), (iii), (iv) and (v)

thereof shall be substituted by the following new sub-

paragraphs

"(i) where the chargeable income does not

exceed €13,000, the tax shall be determined by

multiplying the chargeable income by 0%;

(ii) where the chargeable income exceeds

€13,000 but is less than €17,500, the tax shall be

determined by multiplying the chargeable income by

15% and then subtracting €1,950 from the result;

(iii) where the chargeable income exceeds

€17,500 but is less than €60,000, the tax shall be

determined by multiplying the chargeable income by

25% and then subtracting €3,700 from the result;

(iv) where the chargeable income exceeds

€60,000, the tax shall be determined by multiplying

the chargeable income by 35% and then subtracting

€9,700 from the result;";

(b) in paragraph (a) of sub-article (26A) thereof the

words "on every euro of the gross amount of the income so

derived" shall be substituted by the words "on every euro of the

amount of the income so derived net of any deductions allowable

in terms of article 14 in respect of expenses incurred in the

production thereof".

16. In the definition "endangered tax" in item 1 of the Schedule to

the principal Act, the words "additional tax;" shall be substituted by

the words "additional tax:" and immediately thereafter there shall be

added the following new proviso

"Provided that where the Commissioner is satisfied

that the tax actually chargeable or any part thereof has been paid

under the Final Settlement System (FSS) Rules, the amount so

paid shall not be regarded as endangered tax notwithstanding

that it may not have been declared;".

PART V

AMENDMENTS TO THE EXTERNAL TRANSACTIONS ACT

17. This Part amends the External Transactions Act and it shall be

read and construed as one with the External Transactions Act,

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

18. Sub-article (1) of article 10 of the principal Act shall be

amended as follows

(a) in paragraph (b) thereof immediately after the words

"for the forfeiture of any monies," there shall be added the words

"wholly or partially,";

(b) in paragraph (c) thereof the words "therefor as well

as" shall be substituted by the words "therefor, as well as".

PART VI

AMENDMENTS TO THE SOCIAL SECURITY ACT

19. 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".

20. In article 2 of the principal Act the definition "severely

disabled person" shall be amended as follows

(a) the words "owing to a permanent disability" shall be

substituted by the words "owing to a disability";

(b) in paragraph (c) thereof the words "Amyotrophic

Lateral Sclerosis (ALS); or" shall be substituted by the words

"Amyotrophic Lateral Sclerosis (ALS);" and immediately

thereafter there shall be added the words "Immotile Cilia

Syndrome; or";

(c) in the Maltese version only, in paragraph (e) thereof,

the words "liċenza tas-sewqan" shall be substituted by the words

"liċenzja tas-sewqan; jew";

(d) in paragraph (f) thereof the words "congenital

indifference to pain;" shall be substituted by the words

"congenital indifference to pain; or" and immediately thereafter

there shall be added the following new paragraph

"(g) an impairment or condition not listed in any of

the previous paragraphs, and that which, in conjunction

with any difficulties in terms of the meaning of disability

as laid down in this article, produces a disabling effect

equivalent to, or greater than the percentage specified in

the Fifteenth Schedule, and as confirmed by the

interprofessional panel established by article 106(g);".

21. In the proviso to sub-article (6) of article 15 of the principal Amendment of

Act the words "to suffer from a disability" shall be substituted by the article

principal Act.

words "to have a disability".

22. Article 16 of the principal Act shall be amended as follows

Amendment of

article 16 of the

principal Act.

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

amended as follows

(i) the words "as suffering, during the period for

which the credit is being requested, from a serious

disability or rare disease or disorder" shall be substituted

by the words "as, during the period for which the credit is

being requested having a serious disability, or suffering

from a rare condition or disease";

(ii) in the second proviso thereto the words

"suffering from a serious disability" shall be substituted by

the words "having a serious disability";

(b) in paragraph (g) of sub-article (2) thereof the words

"which shall not exceed one hundred and four (104)

contributions." shall be substituted by the words "which shall not

exceed one hundred and four (104) contributions:" and

immediately thereafter there shall be added the following new

proviso

"Provided that the total of such credited

contributions that may be awarded for such period, shall

not exceed one hundred and four (104) contributions in the

case of a person who successfully concludes a programme

in a therapeutic community centre for the rehabilitation of

drug or alcohol addicts in Malta, as may from time to time

be recognised by the Minister and starts working.";

(c) in the proviso to paragraph (a) of sub-article (3)

thereof the words "shall be entitled to a total of two hundred and

eight (208) credited contributions;" shall be substituted by the

words "shall be entitled to a total of two hundred and eight (208)

credited contributions:" and immediately thereafter there shall be

added the following new proviso

"Provided that with effect from 1st January

2025, the provisions of this sub-article shall also apply to

persons entitled for the Carers Grant in accordance with the

provisions of article 68.".

In sub-article (4)(a) of article 30 of the principal Act, the

words "of the Employment and Training Services Act; or" shall be

substituted by the words "of the Employment and Training Services

Act:" and immediately thereafter there shall be added the following

new proviso

"Provided that such disability or condition is

confirmed by the medical panel appointed in accordance

with the dispositions of article 106 in accordance with

the Impairment Tables Regulations, the payment shall

increase in accordance with the dispositions of Part I of

the Sixth Schedule; or".

Article 53 of the principal Act shall be amended as follows

(a) paragraph (v) of sub-article (1) thereof shall be

substituted by the following new paragraph

"(v) of forty-two years in the case of a person born

on or after the 1st January 1976;";

(b) sub-article (5) thereof shall be substituted by the

following new sub-article

"(5) In the case of a person born between the 1st

January 1969 and the 31 st December 1975, for the purpose

of calculating the yearly average of contributions in terms

of sub-article (1), the yearly average of contributions

required in accordance with this Act for the purposes of

awarding a Two Thirds Pension shall be assessed on any

period of forty-one years between the first day of his

contribution year in which he reaches the age of eighteen

and the last day of his last complete contribution year

before the beginning of his benefit year which includes the

day on which the conditions are required to be satisfied.";

(c) immediately after sub-article (5) thereof, as

amended, there shall be added the following new sub-article

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

January 1976, for the purpose of calculating the yearly

average of contributions in terms of sub-article (1), the

yearly average of contributions required in accordance

with this Act for the purposes of awarding a Two Thirds

Pension shall be assessed on any period of forty-two years

between the first day of his contribution year in which he

reaches the age of eighteen and the last day of his last

complete contribution year before the beginning of his

benefit year which includes the day on which the

conditions are required to be satisfied.".

Article 68 of the principal Act shall be amended as follows

Amendment of

article 68 of the

principal Act.

(a) immediately after paragraph (f) of sub-article (1)

thereof there shall be added the following new paragraph

"(g) Subject to the provisions of this Act, with effect

from 1st January 2025, a parent who is unemployed or self-

occupied and has not yet reached pensionable age and who

proves to the satisfaction of the Director that he is a citizen

of Malta or of a country of the European Union and is

permanently residing in Malta, shall be entitled to a Carer’s

Grant equivalent to fifty percent (50%) of the net National

Minimum Wage annually, where such parent proves to the

satisfaction of the Director that he is taking care by

himself, on a full-time basis and regularly of a child or

children who are in receipt of the Disabled Child

Allowance and the result of the evaluation based on the

model of the World Health Organisation International

Classification of Functioning, Disability, and Health (ICF),

in claims further to the provisions of article 77, is equal to,

or exceeds seventy-five percent (75%) in accordance with

the provisions of the Fifteenth Schedule.";

(b) in the second proviso of paragraph (b) of sub-article

(2) thereof the words "if the rate of the Carers Allowance is

lower." shall be substituted by the words "if the rate of the Carers

Allowance is lower:" and immediately thereafter there shall be

added the following new proviso

"Provided that such a person shall be entitled to

a Carers Allowance or the Increased Carers Allowance

equivalent to one hundred and fifty percent (150%) of the

highest rate that such person is entitled to as specified in

Part IV of the Sixth Schedule, in accordance with the

provisions of sub-articles (1)(a) and (b), if such person is

taking care by himself, on a full-time basis and regularly of

more than one relative.".

Article 85 of the principal Act shall be amended as follows

(a) in sub-article (4) thereof immediately after the words

"With effect from the 1st Janaury, 2015, persons" there shall be

added the words "residing in Malta or an EU member State";

(b) immediately after sub-article (8B) thereof, there shall

be added the following new sub-article

"(8C) Notwithstanding the provisions of sub-articles

(4), (5), (6), (7), (8), (8A) and (8B), with effect from 1st

January 2025, the rates due to persons who have reached

pension age according to the definition "pension age'' in

article 2, who have retired from employment and are not

entitled to a Contributory Pension, but have paid between

fifty (50) and five-hundred and nineteen (519) social

security contributions shall be the rates explained in Item

M of the Twelfth Schedule.";

(c) immediately after the second proviso to sub-article

(9) thereof there shall be added the following new proviso

"Provided further that subject to the provisions

of this Act, with effect from 1st January 2025, it shall be

the right of a parent to be paid a one-time child birth or

adoption bonus of five hundred euro (€500) upon the birth

of a child or in the case of an adoption, or for such births or

adoptions registered with the Public Registry, a one-time

bonus of one thousand euro (€1,000) for the second birth or

adoption registered with the Public Registry, and a one-

time bonus of one thousand and five hundred euro (€1,500)

for every subsequent birth or adopted children that parent

has and who are registered with the Public Registry:".

In paragraph (c) of article 90 of the principal Act the words Amendment of

"prior to reaching his sixtieth birthday:" shall be substituted by the article

principal Act.

words "prior to reaching his sixtieth birthday;" and immediately

thereafter there shall be added the following new paragraph

"(d) with effect from 1st January 2025, in the case of a

person eligible for the payment of a pension in respect of

retirement under the provisions of Part V and immediately

before his retirement was in receipt of an assistance under the

provisions of article 27 or an Injury Pension in accordance with

the provisions of article 29, the retirement pension shall be

increased up to the National Minimum Wage, provided that the

increase is not less than 10% of the rate of the Assistance or

Injury Pension paid to the person under the provisions of articles

27 and 29 prior to retirement:".

Article 106 of the principal Act shall be amended as follows

Amendment of

article 106 of

the principal

(a) in paragraph (a) of the proviso thereof the words "an

Act.

Assistance for the Visually Impaired, an Increased Severe

Disability Assistance, Severe Disability Assistance, Disability

Assistance" shall be deleted;

(b) the paragraph immediately after sub-paragraph (vi)

of paragraph (g) of the proviso thereof shall be substituted by the

following

"Provided that every applicant who appeared

before the interprofessional panel may appeal from that

panel’s decision to the Director, in accordance with the

provisions of article 108, within twenty (20) days from the

date on which said decision would have been

communicated to the said applicant. Further appeal from

this decision shall lie to the Court of Appeal (Inferior

Jurisdiction), at the request of the applicant or of the

Director, following the same procedure envisaged in

article109:";

(c) immediately after paragraph (g) to the proviso

thereof there shall be added the following new paragraph

"(h) the Minister in conjunction with the Minister

responsible for persons with disability shall appoint one (1)

or more interprofessional panels, for the purpose of

advising the Director on the evaluation based on the model

of the World Health Organisation International

Classification of Functioning, Disability, and Health (ICF

for Children and Youths), in claims further to the

provisions of article 77 that make reference to this panel.

Every interprofessional panel shall consist of the following

members, and the applications shall be assigned to the

various panels on a rotation basis

(i) consultant paediatrician to confirm a

diagnosis;

(ii) a professional with knowledge on the

assessment of the components of the ICF;

(iii) a social worker;

(iv) an occupational therapist.".

In sub-article (2) of article 134 of the principal Act the words

"Disability Pension or a Pension for the Visually Impaired" shall be

substituted by the words "Disability Assistance, Severe Disability

Assistance, Increased Severe Disability Assistance or Assistance for

the Visually Impaired".

The Second Schedule to the principal Act shall be amended as

follows

(a) in item 1(a)(i) of Part II thereof the amount of

"€14,000" shall be substituted by the amount of "€16,000";

(b) in item 1(a)(ii) of Part II thereof the amount of

"€23,300" shall be substituted by the amount of "€26,000";

(c) in item 1(a)(i) of Part III thereof the amount of

"€14,000" shall be substituted by the amount of "€16,000";

(d) in item 1(a)(ii) of Part III the amount of "€23,300"

shall be substituted by the amount of "€26,000";

(e) in item 1 of Part IV thereof the words "Provided that

in calculating the means in terms of this paragraph, in lieu of the

limits laid down in the proviso to paragraph 1(a) of Part I of this

Schedule, €14,000 in the case of a single or widowed person or

€23,300 in the case of a married person shall instead be taken in

the calculation of means:" shall be substituted by the words

"Provided that in calculating the means in terms of this

paragraph, instead of the limits stipulated in the proviso to

paragraph 1(a) of Part I, €16,000 in the case of a single or a

widowed person or €26,000 in the case of a married person shall

be taken in the calculation of means:".

Immediately after paragraph (g) of item 2 of Part II of the Amendment of

Fifth Schedule to the principal Act there shall be added the following the

Schedule to the

new paragraph

principal Act.

"(h) Venous Thromboembolic Disease".

In Part I of the Sixth Schedule to the principal Act, the words Amendment of

"When the number of eligible members in the household exceeds the the

Schedule to the

number indicated in the above Table, the respective weekly rate principal Act.

indicated therein shall be increased by €8.15 per week in respect of

every other eligible member in that household." shall be substituted by

the words "When the number of eligible members in the household

exceeds the number indicated in the above Table, the respective

weekly rate indicated therein shall be increased by €8.15 per week in

respect of every other eligible member in that household:" and

immediately thereafter there shall be added the following new proviso

"Provided that with effect from the 1 st January 2025,

when the medical panel arrives to a decision in accordance with

the provisions of sub-article (4) of article 30, the respective

weekly rate indicated therein shall be increased by €5.00 per

week in respect of every other eligible member in such

household.".

Immediately after item L of the Twelfth Schedule to the Amendment of

the Twelfth

principal Act there shall be added the following new item

Schedule to the

principal Act.

"M.

Grant to Persons who do not qualify for a Contributory Pension

Number of

50 - 100 - 150 - 200 - 250 - 300

- 400 - 450

-

Social

Security

Contributions

Paid

Payment

€550

€600

€650

€700

€800

€850

€900

€950

€1000

".

In the third proviso to paragraph (a) of item (7) of the Amendment of

Thirteenth Schedule to the principal Act the words "the sum of the

Schedule to the

€22,000." shall be substituted by the words "the sum of €22,000:" and principal Act.

immediately thereafter there shall be added the following new proviso

"Provided that, notwithstanding the provisions of this item,

with effect from 1st of January 2025, in the case of a person born on or

before 31st of December 1961, the maximum pensionable income

shall increase gradually to reach the maximum pensionable income of

a person born on or after 1st of January 1962. The resultant calculated

maximum pensionable income for the year 2025 shall not exceed the

sum of €23,500.".

Immediately after the Fourteenth Schedule of the principal

Act there shall be added the following new Schedule

"FIFTEENTH SCHEDULE

(article 27)

Qualifying percentages for the payment of disability assistances

Disability Assistance

From 45% to 59%

Severe Disability Assistance

From 60% to 74%

Increased Severe Disability Assistance

Not less than 75%

Assistance for the Visually Impaired

Not less than 50%

".

PART VII

AMENDMENTS TO THE DUTY ON DOCUMENTS AND

TRANSFERS ACT

This Part amends the Duty on Documents and Transfers Act

and it 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".

In sub-article (6) of article 19 of the principal Act

immediately after the words "for any relevant offence" there shall be

added the words ", or during any judicial or quasi-judicial proceedings

when ordered by a court or tribunal to disclose information".

PART VIII

AMENDMENTS TO THE MOTOR VEHICLES

REGISTRATION AND LICENSING ACT

This Part amends the Motor Vehicles Registration and

Licensing Act and it 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".

Article 2 of the principal Act shall be amended as follows

(a) immediately after the definition "Administrative

Review Tribunal" there shall be added the following new

definition

" "Agency" means the Local Enforcement System

Agency established by article 5 of the Local Enforcement

System (Establishment as an Agency) Order;";

(b) immediately after the definition "brought into Malta"

there shall be added the following new definition

" "categories L5e, L6e and L7e" shall have the same

meaning as assigned to them in Annex I of Regulation

(EU) No. 168/2013 of the European Parliament and of the

Council of 15 January 2013 on the approval and market

surveillance of two or three-wheel vehicles and

quadricycles;";

(c) immediately after the definition "category M vehicles"

there shall be added the following new definition

" "category T" includes all wheeled tractors as

described in Regulation (EU) No 167/2013 of the

European Parliament and of the Council of 5 February

2013 on the approval and market surveillance of

agricultural and forestry vehicles

Provided that every wheeled tractor category

shall be supplemented at the end by an ‘a’ or ‘b’ index

according to its design speed as follows

(a) ‘a’ for wheeled tractors with a

maximum design speed below or equal to 40 km

per hour; and

(b) ‘b’ for wheeled tractors with a

maximum design speed above 40 km per hour;";

(d)

the definition "L5e vehicle" shall be deleted;

(e) immediately after the definition "registration tax"

there shall be added the following new definitions

" "Regulation (EU) No. 167/2013" means Regulation

(EU) No. 167/2013 of the European Parliament and of the

Council of 5 February 2013 on the approval and market

surveillance of agricultural and forestry vehicles;

"Regulation (EU) No. 168/2013" means Regulation

(EU) No. 168/2013 of the European Parliament and of the

Council of 15 January 2013 on the approval and market

surveillance of two or three-wheel vehicles and

quadricycles;";

(f) the definition "quad bikes" shall be substituted by the

following new definition

" "quad bikes" means a four-wheeled bike whose

maximum design speed is more than 45 km per hour and

for the purposes of this Act includes wheeled tractors of

category T that are supplemented by a ‘b’ index, category

L6e and category L7e;"; and

(g) the definition "third country" shall be substituted by

the following new definition

" "third country" means a country other than a

Member State, the Channel Islands (Guernsey and Jersey),

the Isle of Man, Monaco, Andorra, San Marino, Norway,

Iceland, Liechtenstein and Northern Ireland (with

exception for the Northern Irish territorial waters in

accordance with Article 5(3) of the Protocol on Ireland/

Northern Ireland) on 1st January 2021 keep their status of

Union goods even if they are registered in the UK;".

Article 8 of the principal Act shall be amended as follows

(a) in paragraph (b) of sub-article (6) thereof the words

"in article 21(1)." shall be substituted by the words "in article

21(1):" and immediately after there shall be added the following

new proviso

"Provided that any person who without making

use thereof, with regard to an M1 motor vehicle or a motor

cycle which has been registered with the Authority for use

on the road in Malta solely and exclusively on Friday as

from 18:00 onwards, Saturdays, Sundays, national holidays

and other public holidays, fails to keep such M1 vehicle or

motor cycle garaged on any other day shall also be guilty

of an offence and shall also be liable to the punishment

stipulated in article 21(2a)";

(b) the first proviso to sub-article (8) thereof shall be

amended as follows

(i) paragraph (a) thereof shall be substituted by the

following new paragraph

"(a) is being held by the Police or Customs or

the Authority or the Agency, or";

(ii) in paragraph (e) thereof the words "a prison

sentence:" shall be substituted by the words "a prison

sentence; or" and immediately thereafter there shall be

added the following new paragraph

"(f) its owner is hospitalised on a long-term

basis or was suffering from a medical condition

which prevented him from renewing the circulation

licence thereof:".

Immediately after sub-article (3) of article 18 of the principal Amendment of

article 18 of the

Act there shall be added the following new sub-article

principal Act.

"(3a) Where a vehicle which is not subject to the

exemptions stipulated in sub-article (1) is brought into

Malta and is used on the road without payment of the

vehicle registration tax, said vehicle shall be

impounded and the owner shall be liable to the

payment of the vehicle registration tax together with

any administrative costs and penalties which may be

established by the Authority and, following such

payment, shall be obliged to either register the vehicle

or take the said vehicle out of Malta within such time

as may be prescribed by the Authority, from time to

time

Provided that the owner may, instead of

payment of the vehicle registration tax, pay the

Authority an administrative penalty of two thousand

euro (€2,000) and proceed to take the said vehicle out

of Malta within such time as may be prescribed by the

Authority.".

Immediately after sub-article (2) of article 21 of the principal Amendment of

article 21 of the

Act there shall be added the following new sub-article

principal Act.

"(2a) Any person who, without making use thereof, with

regard to an M1 motor vehicle or a motor cycle which has been

registered with the Authority for use on the road in Malta solely

and exclusively on Friday as from 18:00 onwards, Saturdays,

Sundays, national holidays and other public holidays, fails to

keep such M1 vehicle or motor cycle garaged on any other day

shall be guilty of an offence and on conviction, shall be liable to

a fine (multa) of two thousand five hundred euro (€2,500).".

Sub-article (8) of article 25 of the principal Act shall be

substituted by the following new sub-article

"(8) The registration value of any such vehicle for the

purpose of calculating the registration tax shall be based

on the average market value of identical, equivalent or

similar motor vehicles on the international market

Provided that the registration value shall not in

any event be less than the invoice value.".

In the Second Schedule to the principal Act the table in

Category D shall be substituted by the following new table

" Engine capacity

Rate

Not exceeding 250cc

cc x 0.085% x RV

Exceeding 250cc but not exceeding

cc x 0.090% x RV

500cc

Exceeding 500cc but not exceeding

cc x 0.095% x RV

800cc

Exceeding 800cc

cc x 0.10% x RV

Battery/Electric Quad Bikes

0% ".

PART IX

AMENDMENTS TO THE INCOME TAX MANAGEMENT ACT

This Part amends the Income Tax Management Act and it

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

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

In sub-article (2) of article 4 of the principal Act immediately

after the words "for the purpose of carrying into effect the provisions

of the Income Tax Acts," there shall be added the words "or in the

course of any judicial or quasi-judicial proceedings when ordered to

disclose information by a court or tribunal".

In paragraph (b) of sub-article (1) of article 51 of the principal

Act the words "or of a partnership," shall be substituted by the words

"or of a partnership; or" and immediately thereafter there shall be

added the following new paragraph

"(c) fails to furnish a return which he is required to

furnish in accordance with the Income Tax Acts,".

In paragraph (a) of sub-article (1) of article 52 of the principal

Act the words "omits from a return" shall be substituted by the words

"fails to furnish a return or any other document or statement which he

is required to furnish by the Income Tax Acts or omits from a return".

Article 56 of the principal Act shall be deleted.

Deletion of

article 56 of the

principal Act.

PART X

AMENDMENTS TO THE EXCISE DUTY ACT

(1) This Part amends the Excise Duty Act and it shall be Amendments to

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

Act.

referred to as the "principal Act".

(2) The provisions of this Part, except for articles 52, 53, 54 and

regulations 6(3), 8(4), 8(5) and 8(6) of Part K of Schedule Six of the

principal Act, shall be deemed to have come into force on 1st January

2025.

Sub-article (1) of article 10C of the principal Act shall be Amendment of

article 10C of

substituted by the following new sub-article

the principal

Act.

"10C. (1) Notwithstanding the provisions of article 10,

the registered merchant shall be a professional trader without the

status of authorised warehouse keeper. This trader may, in the

course of his business, dispatch and, or receive goods subject to

excise duty, mentioned in Part B of the Fourth Schedule and, in

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

Five H and Five I.".

In sub-article (1) of article 16A of the principal Act Amendment of

immediately after the words "four thousand euro (€4000)" there shall article

the principal

be added the words "for tobacco products and twenty-five thousand Act.

euros (€25,000) in cases related to any other excisable goods".

In sub-article (4) of article 27 of the principal Act the words Amendment of

article 27 of the

"this article" shall be substituted by the words "article 28".

principal Act.

Sub-article (1) of article 28 of the principal Act shall be Amendment of

article 28 of the

substituted by the following new sub-article

principal Act.

"28. (1)(a) The goods seized in accordance with this Act

shall be deemed to be forfeited ipso jure and the Commissioner

may dispose of them according to law, unless the person from

whom the goods have been seized, or the owner, or any person

authorised by him within thirty (30) days from the date of the

seizure note, gives a notice in writing to the Commissioner,

requesting that the seized goods are returned to him or indicating

that he intends to demand that they are returned, and within

thirty (30) days from such notice, initiates the necessary

proceedings before the Administrative Review Tribunal by

means of an application against the Commissioner.

(b)

The Commissioner shall have thirty (30) days from

the notification to reply to the application before the

Administrative Review Tribunal. The Tribunal shall hear the

application expeditiously.

(c) In default of such contestation in terms of paragraph

(a), the claim on the seized object shall be deemed to be

abandoned

Provided that where a seizure is made in accordance

with this Act and no contestation has been made by the person

from whom the goods have been seized, or by the owner, or any

person authorised by him for the purposes of this article, in case

of an acquittal by the competent Court as provided for in article

36, which has become a res judicata, the contestation process as

provided for in paragraph (a) may be availed of within thirty (30)

days from the date of the judgement becoming a res judicata. In

default of such contestation, the claim on this good shall be

deemed to be abandoned

Provided further that the preceding proviso shall not

apply to the confiscation of any good which is illegal or

prohibited by virtue of any law and to the confiscation of any

restricted good unless such restrictions have been observed.".

In the First Schedule to the principal Act, immediately after

the item "Construction components and other fixtures to the extent as

shown in the relevant schedule to this Act Schedule Five H" there

shall be added the following new item

"Electronic cigarettes and refill containers

Schedule Five I".

The Second Schedule to the principal Act shall be amended as

follows

(a) the item "Beer" thereof shall be substituted by the

following new item

"BEER

€4.60 per hectolitre by the actual

alcoholic strength by volume

expressed as percentage

If produced by small and independent

€2.30 per hectolitre by the actual

breweries with an annual production not a l c o h o l i c s t r e n g t h b y v o l u m e

e x c e e d i n g t w o - h u n d r e d t h o u s a n d expressed as percentage

(200,000) hL of beer.

P r o d u c t s c o n t a i n i n g a m i x t u r e of

€0.54 per hectolitre by the

beer with non-alcoholic drinks and beers a l c o h o l i c s t r e n g t h b y v o l u m e

not exceeding 3.5% of the actual alcoholic expressed as percentage";

strength by volume.

The term "beer" covers any product

f a l l i n g w i t h i n C u s t o m s Ta r i f f

H e a d i n g No. 2203 or any pr o d uc t

containing a mixture of beer with non-

alcoholic drinks falling within Customs

Tariff Heading No. 2206, in e i t h e r case

w i th an a c t u a l a l c o h o l i c s t r e n g t h by

v olume exceeding 0.5% vol.

(b) the item "Wine of Fresh Grapes" thereof shall be

substituted by the following new item

"WINE OF FRESH GRAPES

€0.205 per litre

1. If produced by independent small

€0.1025 per litre

wine producers which produce on average

less than twenty-thousand (20,000) hL of

wine per year

2. The term "still wine" covers all

products falling within Customs Tariff

Heading Nos. 2204, 2205 and 2206 except

sparkling wine as defined in paragraph 2

below

-

which have an actual alcoholic

strength by volume exceeding 1.2% vol., but

not exceeding 15% vol., provided that the

a l c o h o l c o n t a i n e d in t h e f i n i s h e d

product is entirely of fermented origin;

-

which have an actual alcoholic

strength by volume exceeding 15% vol., and

not exceeding 18% vol., provided they have

been produced without any enrichment and

that the alcohol contained in the finished

product is entirely of fermented origin.

3. The term "sparkling wine" covers

all products falling within CN codes 2204 10,

2204 21 06, 2204 21 07, 2204 21 08, 2204 21

09, 2204 29 10 and 2205 which

-

are contained in bottles with

"mushroom stoppers" held in place by ties or

fastenings, or they have an excess pressure

due to carbon dioxide in solution of three (3)

bar or more;

-

have an actual alcoholic strength

by volume exceeding one point two per

c e n t ( 1 . 2 % ) v o l . , b u t n o t exceeding

fifteen per cent (15%) vol., provided that the

alcohol contained in the finished product

is entirely of fermented origin.".

The Third Schedule to the principal Act shall be amended as Amendment to

the Third

follows

Schedule to the

principal Act.

(a) the item "Other smoking Tobacco" thereof shall be

substituted by the following new item

"Other Smoking Tobacco

€36.40 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 the definition

of cigars and cigarillos or cigarettes and

which can be smoked. For the purpose of

this paragraph, "tobacco refuse" shall be

deemed to be remnants of tobacco leaves

and by-products obtained from tobacco

processing or the manufacture of tobacco

products.

Smoking tobacco as defined

above in which more than 25% by weight of

the tobacco particles have a cut width of less

than 1.5 mm 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 1.5 mm or more 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 sub- paragraphs i. and ii. above shall be

treated as smoking tobacco.";

(b) the words "Pipe and Shisha Tobacco €36.40 per kg."

thereof shall be deleted.

In the Fourth Schedule to the principal Act the words "CN

Codes 2710.19.43" shall be substituted by the words "CN Codes

2710.19.42".

Immediately after Schedule Five H to the Fifth Schedule to

the principal Act there shall be added the following new Schedule

"Schedule Five I

Electronic cigarettes and refill containers

Description of excisable goods

Rate of Excise Duty

Cartridges and refills, filled, for

€0.13 per mL

electronic cigarettes, preparations

for use in cartridges and refills for

electronic cigarettes containing

nicotine classified under HS Codes

2404120010 and 2404120090

Cartridges and refills, filled, for

€0.13 per mL".

electronic cigarettes, preparations

for use in cartridges and refills for

electronic cigarettes not containing

nicotine classified under HS Code

2404199000

The Sixth Schedule to the principal Act shall be amended as Amendment to

the Sixth

follows

Schedule to the

principal Act.

(a) Part E - "Beer Regulations" thereof shall be amended

as follows

(i) regulation 11 of Part VI thereof shall be

amended as follows

(ia) sub-regulation (4) thereof shall

be

substituted by the following new sub-regulation

"(4) For the purpose of excise duty, the

alcoholic content of the final product shall be

expressed as a percentage of the actual

alcoholic strength by volume.";

(ib) sub-regulation (6) thereof shall

be

substituted by the following new sub-regulation

"(6) For the purpose of payment of duty

on beer in accordance with this Act, the volume

and the actual alcoholic strength by volume

expressed as a percentage of the beer released

for consumption or for free circulation, shall be

the highest of

(a) those declared on the label of

the container;

(b) those declared on the invoice

or other document relating to the sale or

delivery of the beer;

(c) those found by analytical

means by the Commissioner.";

(ic) sub-regulation

(7)

thereof

shall

be

deleted;

(ii)

Schedule III thereof shall be deleted;

(b) immediately after Part J thereof there shall be added

the following new part

"Part K

Electronic Cigarettes and Refill Containers Regulations

1. The title of these regulations is the Electronic

Cigarettes and Refill Containers Regulations.

2. (1) In these regulations, unless the context

otherwise requires

"electronic cigarette" means a product that

can be used for consumption of nicotine or non-

nicotine-containing vapour via a mouth piece, or

any component of that product, including

cartridges, a tank and the device without cartridge

or tank. Electronic cigarettes can be disposable or

refillable by means of a refill container and a tank,

or rechargeable with single use cartridges;

"refill container" means a receptacle that

contains a nicotine or non-nicotine-containing

liquid, which can be used to refill an electronic

cigarette.

(2) The definitions contained in article 2 of this Act

shall, unless the context otherwise requires and subject to

the provisions of sub-regulation (1) hereof, apply to these

regulations.

3. No electronic cigarette or refill container shall be

containers added imported for the purpose of sale, stored for the purpose of

sale, prepared for sale, offered for sale or offered for free

unless it is imported, stored, prepared for sale, offered for

sale or offered for free by a registered merchant or an

authorised tax warehouse keeper

Provided that a person who shows that he

purchased an electronic cigarette or refill container from a

registered merchant, or an authorised tax warehouse

keeper shall not be deemed to have violated this

obligation.

4. No person shall manufacture or process electronic

cigarettes or refill containers otherwise than in conformity

with the provisions of article 9 of this Act.

5. Excise duty on electronic cigarettes and refill

containers is due when they are offered for home

consumption and shall be paid by the authorised tax

warehouse keeper at the latest by the fifteenth (15 th ) day of

the following month.

6. (1) The authorised tax warehouse keeper of

electronic cigarettes and refill containers shall submit to

the Commissioner a statement showing, in respect of the

production and importation of each product, during such

accounting period as the Commissioner may allow or as

may be prescribed

(a) the volume of manufactured electronic

cigarette refill liquid, the number and volume of

imported pre-filled refill containers and the number

and volume of pre-filled disposable electronic

cigarettes, held by him on the first day of such period

at any authorised tax warehouse registered in his

name;

(b) the volume of manufactured electronic

cigarette refill liquid, the number and volume of

imported pre-filled refill containers and the number

and volume of pre-filled disposable electronic

cigarettes as aforesaid acquired by him during each

such period, stating from where acquired;

(c) the volume of manufactured electronic

cigarette refill liquid, the number and volume of

imported pre-filled refill containers and the number

and volume of pre-filled disposable electronic

cigarettes as aforesaid sold or otherwise disposed of

during such period and to whom they were sold or in

whose favour they were disposed of; and

(d) the

volume

of

each

product

manufactured by him during each such period.

(2) The said statement shall be produced to the

Commissioner not later than the last day of the month

immediately following the end of each accounting period

referred to in sub-regulation (1) and shall be so compiled

as to show the information required to be furnished,

classified separately under the title of imported electronic

cigarettes and refill containers and manufactured

electronic cigarettes and refill containers.

(3) Any person who fails to comply with the

provisions of this regulation shall be guilty of an offence

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

exceeding five thousand euro (€5,000).

7. The following records shall be kept by the

authorised tax warehouse keeper of electronic cigarettes

and refill containers in accordance with regulation 15 of

Part A - Excisable Goods Regulations

(a) all records relating to the information

required to be submitted to the Commissioner

according to the preceding regulation; and

(b) documents related to tax warehousing

and Customs’ releases, invoices, delivery orders and

all other documents concerned with the importation,

acquisition, sale, delivery, exportation or transfer of

electronic cigarettes and refill containers.

8. (1) No electronic cigarette and refill container

Affixing of excise

shall be placed on the market unless its packet, box, refill

cartridges or container is sealed with an excise stamp in a

way that in order for that packet, box, refill cartridges or

container to be opened, the destruction of the excise stamp

is ensured.

(2) Such excise stamps shall be issued by the

Commissioner against payment, as may be prescribed

under the Act, on application by the authorised tax

warehouse keeper or registered merchant.

(3) The excise stamp shall be affixed to the packet,

box, refill cartridges or container by not later than five (5)

working days from when it is purchased, except in the case

of an excise stamp that should be affixed by an authorised

tax warehouse keeper.

(4) (a) A registered merchant who fails to affix an

excise stamp within five (5) working days from when it is

purchased, except for an authorised tax warehouse

keeper, shall on conviction, be liable to a fine (multa) of

one-hundred euro (€100) and the Court shall also order

the forfeiture of the excise stamps that have not been

affixed within the given time. In addition to this, the

forfeiture of the electronic cigarettes and refill containers

themselves shall also take place according to law, as

applicable.

(b) In the case of an irregularity mentioned in

paragraph (a), the Commissioner, while he confiscates the

excise stamps not affixed in the time given, may, if the

offender admits, refrain from instituting proceedings in

terms of this Act and impose a penalty equivalent to one-

hundred euro (€100). In addition to this, the forfeiture of

the electronic cigarettes and refill containers themselves

shall also take place according to law, as applicable.

(5) (a) Every authorised tax warehouse keeper

who takes out of the authorised tax warehouse electronic

cigarettes and refill containers on which a band or excise

stamp was not affixed according to law, shall on

conviction, be liable to a fine (multa) of one-hundred

euro (€100) and the Court shall also order the forfeiture

of the excise stamps that had to be affixed to those goods.

In addition to this, the forfeiture of the electronic

cigarettes and refill containers themselves shall also take

place according to law, as applicable.

(b) In the case of an irregularity mentioned in

paragraph (a), the Commissioner, while he confiscates

the excise stamps that had to be affixed to the electronic

cigarettes and refill containers, may, if the offender

admits, refrain from instituting proceedings in terms of

this Act and impose a penalty equivalent to one-hundred

euro (€100). In addition to this, the forfeiture of the

electronic cigarettes and refill containers themselves

shall also take place according to law, as applicable.

(6) (a) Excluding authorised persons, every person

who has in his possession excise stamps shall be liable, on

conviction, to a fine (multa) of two hundred and fifty euro

(€250) and the Court shall order the confiscation of those

excise stamps. In addition, the forfeiture of the electronic

cigarettes and refill containers themselves shall also take

place, according to law, as applicable.

(b) In the case of an irregularity mentioned in

paragraph (a), the Commissioner, while he confiscates

the excise stamps that remained unaffixed, may, if the

offender admits, refrain from instituting proceedings in

terms of this Act and impose a penalty equivalent to two-

hundred and fifty euro (€250). In addition to this, the

forfeiture of the electronic cigarettes and refill containers

themselves shall also take place according to law, as

applicable.

9. Any quantity of electronic cigarettes and refill

containers found in the possession of any person in

contravention of the provisions of regulation 8, shall be

withheld and the provisions of article 17 et seq shall

apply, and this without prejudice to any other punishment

provided for under the Act or any other law.".

In the Annex to the principal Act Form SAL 1 shall be

substituted by the following new form

PART XI

AMENDMENTS TO THE VALUE ADDED TAX ACT

This Part amends the Value Added Tax Act and it shall be read Amendments to

and construed as one with the Value Added Tax Act, hereinafter in this the

Value Added

Tax Act.

Part referred to as the "principal Act".

In sub-article (7) of article 10 of the principal Act the words Amendment of

"(7) A registration in accordance" shall be substituted by the words "(7a) article

10 of the

principal Act.

A registration in accordance".

The proviso to sub-article (2) of article 11 of the principal Act Amendment of

article 11 of the

shall be substituted by the following new provisos

principal Act.

"Provided that such registration shall only take effect

as from the first day of the month in which the Commissioner

receives the application in accordance with sub-article (1) from a

taxable person who is not registered under article 10, or from the

date of commencement of the economic activity of the taxable

person, whichever is the later

Provided further that such registration shall only take

effect as from the first day of the month following the month in

which the Commissioner receives the application under sub-

article (1) from a taxable person registered under article 10.".

In article 11B(4) of the principal Act the words "Article 37a

of Regulation (EU) 904/2010" shall be substituted by the words

"Article 37a of Council Regulation (EU) No. 904/2010".

In the proviso to sub-article (2) of article 27 of the principal

Act the words "in the circumstances mentioned in article 11(3)." shall

be substituted by the words "in the circumstances mentioned in article

11(4).".

In sub-article (2) of article 47A of the principal Act the words

"of Value Added Tax" shall be deleted.

In sub-article (2) of article 56 of the principal Act,

immediately after the words "investigation or a prosecution for any

relevant offence" there shall be added the words "or during any

judicial or quasi-judicial proceedings when ordered by a court or

tribunal to disclose information".

Article 57 of the principal Act shall be substituted by the

following new article

57. (1) The provisions of the Fourteenth Schedule

"Special cases.

shall apply with respect to the special cases prescribed by

the Minister in the said Schedule.

(2) With respect to the special cases to which the

Fourteenth Schedule applies and the obligations of

persons involved in such cases, the said Schedule shall

have effect notwithstanding anything to the contrary

contained in the other provisions of this Act

Provided that the other provisions of this Act

shall apply to the said cases and obligations insofar as

they are not inconsistent with anything contained in the

said Schedule.".

In article 62 of the principal Act the words "forming part of

the economic activity" shall be deleted.

In sub-article (1) of article 66 of the principal Act Amendment of

immediately after the words "inheritance of a deceased person," there article

principal Act.

shall be added the words "any parent or guardian of a minor," and

immediately after the words "body of persons, deceased person," there

shall be added the word "minor,".

In sub-article (1) of article 80 of the principal Act the words Amendment of

"The provisions of articles 18, 60 and 62" shall be substituted by the article

principal Act.

words "The provisions of articles 18, 60, 62 and 62A".

The Third Schedule to the principal Act shall be amended as Amendment of

the Third

follows

Schedule to the

principal Act.

(a) in paragraph (c) of sub-item (5) of item 4 of Part One

thereof the words "and sub-item (1) of item 10 of Part Two of

this Schedule" shall be deleted;

(b) in sub-item (4) of item 10 of Part Two thereof the

words "and paragraph (a) of sub-item (3) of item 4 of Part One of

this Schedule" shall be deleted.

In item 5 of Part Two of the Sixth Schedule to the principal Amendment of

Act immediately after the words "provided for in article 284(1)" there the

Schedule to the

shall be added the words "of Council Directive 2006/112/EC".

principal Act.

In item 2 of the Eighth Schedule to the principal Act the Amendment of

words "in accordance with Article 102 of Council Directive 2006/112/ the

Schedule to the

EC or any other article in substitution therefor" shall be deleted.

principal Act.

PART XII

AMENDMENTS TO THE ARBITER FOR

FINANCIAL SERVICES ACT

This Part amends the Arbiter for Financial Services Act and it Amendments

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

Financial

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

In the Maltese text only, the word "provdiment", wherever it General

occurs in the principal Act, shall be substituted by the word "provista". amendment

the principal

Act.

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

immediately

after

the

definition

"competent

authorities" there shall be added the following new definition

" "consumer association" shall have the same meaning

as assigned to it in the Consumer Affairs Act and shall

include any other consumer association that has been

officially recognised in any other country;";

(b) the definition "customer" shall be substituted by the

following new definition

" "customer" means a natural person, including his

successors in title, a micro enterprise, consumer

associations or voluntary organisations

Provided that customer shall include any person in

the case of complaints regarding suspicious fraudulent

payment transactions involving financial services

providers;"; and

(c) the definition "eligible customer" shall be substituted

by the following new definition

" "eligible customer" shall include

(a) a customer who is a consumer of a

financial services provider;

(b) a customer to whom the financial

services provider has offered to provide a financial

service;

(c) a customer who has sought the provision

of a financial service from a financial services

provider;

(d) the lawful successor in title to the

financial product which is the subject of the relevant

complaint;

(e) consumer associations; and

(f) voluntary organisations

Provided that in the case of suspicious fraudulent

payment transactions involving financial services

providers, the victim of fraud exhibiting immediate,

genuine and legitimate interest shall be deemed to be an

eligible customer of any one of the financial services

providers involved in the suspicious fraudulent payment

transaction and this proviso shall be applicable with effect

from 1st October 2025;";

(d)

immediately after the definition "substitute Arbiter"

there shall be added the following new definition

" "voluntary organisation" shall have the same

meaning as assigned to it in the Voluntary Organisations

Act and shall include any other voluntary organisation

that has been officially recognised in any other country.".

PART XIII

AMENDMENTS TO SUBSIDIARY LEGISLATION

This Part amends various subsidiary legislation and it shall be Amendments to

read and construed as one with the subsidiary legislation that it subsidiary

In the Fourth Schedule to the Customs Regulations, forms Amendments to

1(i), 1(ii), 1(iii), 1(iv), 1(v), 1(vi) and 13 shall be substituted by the the

following new forms

Passed by the House of Representatives at Sitting No. 333 of the

14th April, 2025.

ANĠLU FARRUGIA

Speaker

ELEANOR SCERRI

Clerk of the House of Representatives

€4.14