MT
ACT No. III of 2026 AN ACT to implement Budget Measures for the Financial Year 2026 and other administrative measures.
Table of Provisions (76)
Statutory Text (76 Articles)
I assent.
(L.S.)
MYRIAM SPITERI DEBONO
President
10th March, 2026
ACT No. III of 2026
AN ACT to implement Budget Measures for the Financial Year
2026 and other administrative measures.
BE IT ENACTED by the President, by and with the advice and
consent of the House of Representatives, in this present Parliament
assembled, and by the authority of the same, as follows:-
The short title of this Act is the Budget Measures Short title.
Implementation Act, 2026.
PART I
PRELIMINARY
The provisions of this Part shall be deemed to have come into Date of coming
into force of this
force on the 1st January, 2026.
Part.
For the purposes of this Part "revenue" shall have the same Interpretation.
meaning as assigned to it in article 2 of the Public Finance Cap. 601.
Management Act, but does not include proceeds from loans.
(1) Subject to the provisions of this Act, the Government of Authority to
Malta may raise, by way of loan, a sum of money not exceeding one raise loan.
billion and nine hundred million euro (€1,900,000,000).
(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 Cap. 575.
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 Scope.
appropriated and applied for the purpose of
(a) meeting excess expenditure over revenue incurred in
the Consolidated Fund for the year 2026;
(b) redeeming registered stocks and debt instruments
which shall be due for redemption during the year 2026;
(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 conformity with Government’s debt
management policies.
PART II
AMENDMENTS TO THE CIVIL CODE
This Part amends the Civil Code and shall be read and
construed as one with the Civil Code, hereinafter in this Part referred
to as the "Code".
Immediately after article 1178 of the Code in the section
entitled "OF TENDER OF PAYMENT AND OF DEPOSIT" in Sub-
Title V of Title IV of Part II of Book Second, there shall be added the
following article
1178A.(1) Notwithstanding the other provisions of
"Deposit of money
this Sub-Title or of any other law, where a final
judgment is given by a court ordering the payment of a
sum of money to more than one person, without
specifically determining what sum of the total sum
awarded is to be paid to each person, and the judgment
creditors are not joint and several creditors, the debtor
who has been so ordered to pay the sum may free
himself from such obligation and shall be exempt from
the payment of any further interest upon the sum
ordered to be paid in the judgment as from the date of
deposit in court of t he sum due by means of a
lodgement schedule if the following conditions are
satisfied
(i) within three (3) months from the date
of the judgment, the judgment creditors do not, on
their own initiative and without the need for any
request to be made to them, give joint instructions
to the debtor or debtors, as the case may be, by
means of a judicial letter, as to how the sum
adjudicated by the court is to be divided amongst
them and in the said judicial letter they shall also
give the debtor specific instructions on the
manner in which the sum due is to be paid which
shall include all information necessary to enable
such payment to be made; and
(ii) after the lapse of the aforesaid period
of three (3) months, the debtor deposits the sum
due or, subject to sub-article (4) any part thereof
in respect of which he has not been given
instructions as provided in paragraph (i). The
deposit shall be at the expense of the debtor.
(2) The lodgement schedule shall in all cases be
filed in the First Hall Civil Court except in cases where
the sum deposited falls within the competence of the
Court of Magistrates, in which case such lodgement
schedule shall be filed in the Court of Magistrates.
(3) Where there is more than one person entitled to
the sum ordered to be paid in the judgment, it shall be
sufficient for the debtor to serve the lodgement schedule
upon at least one of the judgment creditors and upon any
one of t he a dvocates or legal procurators who
represented any of the judgment creditors in the cause at
the time of the judgment and to cause the publication of
such lodgement schedule in the Government Gazette and
in two daily newspapers, one of which shall be in the
Maltese language and the other in the English language.
(4) Without prejudice to the generality of this
article, a deposit made for the purposes of this article
may not be impugned on any of the grounds provided in
articles 1173 and 1175 or on the basis of a defect of form,
death of a party or the lack of deposit of any interest on
the sum adjudicated or of costs due according to the
judgment
Provided that the rights of the judgment
creditors in respect of any sum not included in the
deposit shall not be prejudiced by reason of that
exclusion.
(5) Where the instructions provided for in sub-
article (1)(i) are not given by all the judgment creditors
the debtor may elect either to avail himself of the
provisions of this article only in respect of those creditors
who have not given such instructions or in respect of all
judgment creditors or, of some of them.
(6) Any one of the judgment creditors may, at any
time and without the consent of the other judgment
creditors being required, file an application to the court
for the withdrawal of his share of the sum deposited upon
the court being satisfied of his share.
(7) This article shall apply in respect of all
judgments even if delivered before the coming into force
thereof, sohowever that in respect of judgments delivered
before the coming into force of this article, the period of
three (3) months provided in sub-article (1)(i) and (ii)
shall commence to run from the day immediately after
the day of the coming into force of this article.".
PART III
AMENDMENTS TO THE CUSTOMS ORDINANCE
This Part amends the Customs Ordinance and shall be read
and construed as one with the Customs Ordinance, hereinafter in this
Part referred to as the "Ordinance".
In article 70C of the Ordinance immediately after sub-article
(2) thereof there shall be added the following new sub-articles
"(3) Any person, if requested by the Commissioner, shall
provide to the Commissioner any information required to ensure
that the provisions of this Ordinance, regulations and any other
law relating to customs where the Commissioner is empowered
to act, are being complied with.
(4) Any person who fails to provide the information
requested by the Commissioner or knowingly provides
information in accordance with this article which is false or
incorrect shall be guilty of an offence under this Ordinance and
shall be subject upon conviction to a fine (multa) of not less than
two hundred and fifty euro (€250) but not exceeding two
thousand and five hundred euro (€2,500), and one-third (1/3) of
such amount shall be considered as a civil debt owed and
payable to the Department of Customs, or to both such fine
(multa) and imprisonment for a term not exceeding three (3)
years
Provided that in addition to any punishment to which
the person convicted of an offence may be sentenced, the Court
shall order the offender to provide the information requested by
the Commissioner within the period determined by the Court.".
Article 72 of the Ordinance shall be substituted by the
following new article
72. (1) Whenever goods are withheld under this
goods are withheld.
Ordinance, the official who withholds the said goods
shall issue a receipt for the withheld goods to the person
from whom the objects were taken or otherwise the
receipt for the withheld goods shall be affixed to the
place from where the goods were withheld.
(2) Where within a period of ninety (90) working
days from when the goods were withheld, the
Commissioner decides that the goods are not subject to
seizure or if he fails to take a decision regarding such
goods, the Commissioner shall immediately return the
withheld goods to the person from whom they were
withheld.
(3) Where it is decided that the goods are subject to
seizure, the Commissioner or the responsible official
shall issue a note of seizure specifying the reason for the
forfeiture within ninety (90) working days from when the
goods are withheld, to any person who the Commissioner
or the responsible official deem, was at the time that the
seizure was made the owner of the withheld goods, if
known.
(4) The seizure note shall be accompanied by a
copy of this article and it shall be deemed to have been
duly given to the person concerned
(a) when it is delivered to such person
personally, if known; or
(b) when it is addressed to such person and
is sent to him by registered mail or left at the last
known address of residence or place of business of
that person, or in the case of a body corporate at its
registered or main office and in this case the date of
the seizure note shall be the date when the
registered post is delivered; or
(c) where such person does not have a
known address in Malta or Gozo, when a notice is
published in the Gazette declaring that the seizure
note has been issued. The date of the seizure note
in this case shall be the date of publication of the
notice in the Gazette.
(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 notice in writing to the Commissioner, requesting
that the seized goods are returned to him or indicating
that he intends to request that they are returned, and
within thirty (30) days from such notice, institutes the
necessary proceedings before the Administrative
Review Tribunal by means of an application against the
Commissioner.
(b) The Commissioner shall have twenty (20) days
from service 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 objects shall be
deemed to have been 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 by 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 such goods shall be deemed to
be abandoned
Provided further that the preceding proviso shall
not apply to the confiscation of any goods which are
illegal or prohibited by any law and to the confiscation of
any restricted goods, unless such restrictions were
observed.
(6) When any seized goods in accordance with this
article is a ship or is of a perishable nature or is, in the
opinion of the Commissioner, likely to suffer substantial
loss of value by the lapse of time, or is a live animal, the
said good may, by order of the Commissioner, be sold
immediately, and the proceeds thereof be retained to
make good for any claim that may be legally made in
respect thereof and for the purpose of any proceedings
instituted under this Ordinance in respect of the seized
goods, such proceeds shall represent and substitute the
said seized goods.
(7) Where a seizure made in accordance with this
article is contested in accordance with sub-article (5),
the Commissioner may at any time, if he deems fit and
notwithstanding the pendency of the proceedings
wherein the seizure is contested, deliver any object
seized to any claimant upon paying to the
Commissioner such sum as the Commissioner deems
adequate, and as long as it does not exceed such sum
which in the opinion of the Commissioner represents
the value of the object, including any duty and tax
which are still due on it, or upon the claimant giving
such bank guarantee that is acceptable to the
Commissioner for the payment of such sum. Such sum
or such guarantee, as the case may be, shall be retained
to make good for any claim that may be legally made in
respect thereof and shall, for the purpose of any
proceedings taken under this Ordinance in respect of
the seized goods, represent and substitute the said
seized goods.".
Article 73 of the Ordinance shall be substituted by the Substitution of
article 73 of the
following new article
Ordinance.
73. (1) Any person may file an appeal before the
Administrative Review Tribunal in cases referred to in
article 72 and related to, as a consequence of, or
incidental to the seizure of any goods in accordance
with the provisions of this Ordinance.
(2) The application shall, under pain of nullity, state
clearly and concisely the nature of the contestation, the
facts out of which the contestation arises, the reasons on
the basis of which such contestation should be upheld,
and the claim for the release of the seized goods.
(3) The applicant shall attach to the application all
such documents in support of his claim and shall specify
in his application the list of witnesses that he intends to
produce stating in respect of each, the proof which he
intends to produce in front of the Tribunal.
(4) The date of the first hearing shall not be later
than thirty (30) days from the date on which the
application was filed.
(5) The application and the notice of the date
appointed for hearing shall be served on the
Commissioner without delay and the said Commissioner
shall file his reply thereto within twenty (20) days
following the date of service of the application.
(6) The Commissioner shall, in his reply, state
clearly and concisely whether he agrees with the facts
established in the application and the reasons on the basis
of which he objects to the claim. He shall also indicate in
his reply the list of the witnesses to be heard before the
Administrative Review Tribunal and shall attach thereto
all the documents in support thereof.
(7) On the day appointed for the hearing of the
application, the Administrative Review Tribunal shall
consider the points of fact and law that may be
determined only from the application, the reply, the
documents filed by either of the parties, or from the
evidence specified by either of the parties in the
application or reply, as the case may be, or from the oral
pleadings of either of the parties.
(8) The Administrative Review Tribunal shall hear
the application expeditiously.
(9) Saving the preceding provisions of this article,
the provisions of the Code of Organization and Civil
Procedure shall apply in relation to any such application
or reply.".
Immediately after article 92 of the Ordinance there shall be
added the following new article
93. The Commissioner or any Customs official
and, or any Police officer shall be afforded the same
protection in relation to judicial proceedings in
accordance with the Holders of Public Office and
Public Entities (Responsibility) Act.".
PART IV
AMENDMENTS TO THE INCOME TAX ACT
(1) This Part amends the Income Tax Act and it shall be Amendments to
read and construed as one with the Income Tax Act, hereinafter in this the
Act.
Part referred to as the "principal Act".
(2) (a) Article 14 of this Act shall be applicable from the year
of assessment 2026; and
(b) articles 15, 16, 17, 18 and 19 of this Act shall be applicable
from the year of assessment 2027.
In sub-article (1) of article 2 of the principal Act in the Amendment of
definition "company" immediately after the words "(3) any European article
principal Act.
Economic Interest Grouping (EEIG) formed pursuant to the provisions
of the Companies Act (European Economic Interest Grouping)
Regulations;" there shall be added the following words
"(4) any Special Limited Partnership Fund established
in accordance with the Investment Services Act (Special
Limited Partnerships Funds) Regulations;".
Article 12(1)(c)(iii)(C)(b) of the principal Act shall be Amendment of
article 12 of the
amended as follows
principal Act.
(a) in sub-paragraph (ii) thereof the words "article
56(1)(b)" shall be substituted by the words "article 56(1)(b)(i)";
(b) in sub-paragraph (iii) thereof the words "under the
last proviso to article 56(1)(b)" shall be substituted by the words
"under article 56(1)(b)(ii), (iv) and (v)".
Immediately after paragraph (h) of sub-article (1) of article 14 Amendment of
of the principal Act there shall be added the following new paragraph: article
principal Act.
"(ha) (i) any expenditure incurred, at one hundred and
seventy-five per cent (175%) of the actual amount of such
expenditure, on research, development and innovation activities
by a person engaged in any trade, business, profession or
vocation and proved to the satisfaction of the Commissioner to
have been incurred for the use and benefit of the trade, business,
profession or vocation
Provided that any such expenditure of a capital
nature, unless it is an expenditure in respect of which a deduction
is allowable under paragraphs (f) and (j), shall be spread equally
over the year in which it has been incurred and the five (5)
subsequent years
Provided further that no deduction shall be allowed
under the provisions of this paragraph where such expenditure
relates to plant or machinery or premises, in respect of which any
deduction is allowed in accordance with paragraphs (f) and (j);
(ii) this paragraph shall apply from such date as may be
provided by the Minister responsible for finance by notice in the
Gazette;
(iii) the Minister responsible for finance may by rules
define the activities that constitute research, development and
innovation for the purposes of this paragraph as well as prescribe
such other conditions as may be applicable to this paragraph;".
In paragraph (b) of article 14D of the principal Act the words
"two thousand five hundred euro (€2,500)" shall be substituted by the
words "four thousand five hundred euro (€4,500)".
In paragraph (b) of sub-article (5) of article 49A of the
principal Act the words "in terms of article 56(1)(b)(i)" shall be
substituted by the words "in accordance with the provisions of article
56(1)(b) that are applicable to the chargeable income of the said
spouse".
Article 56 of the principal Act shall be amended as follows
(a)
sub-article (1) thereof shall be amended as follows
(i) paragraph (a) thereof shall be substituted by the
following new paragraph
"(a) in the case of a married couple resident in
Malta in the year immediately preceding the year of
assessment and to whom article 49 applies, saving
where an election has been made for a separate return
for the purposes of article 49A or where the responsible
spouse has opted for a separate computation for the
purposes of article 50
(i) where the provisions of subparagraphs
(ii) and (iii) do not apply, the tax shall be
determined as follows
(a) where the chargeable income
does not exceed €15,000, the tax shall be
determined by multiplying the chargeable
income by 0%;
(b) 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;
(c) 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;
(d) 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) subject to sub-paragraph (iii) where,
in the year immediately preceding the year of
assessment
(A) the married couple maintained
under its custody a child who was not over
eighteen (18) years of age, or not over
twenty-three (23) years of age if receiving
full-time education at any university,
college or other educational establishment;
and
(B) at least one of the spouses was a
national of a European Union or European
Economic Area Member State (EEA) or had
a long-term resident status in accordance
with the Status of Long-term Residents
(Third Country Nationals) Regulations; and
(C) in the case where none of the
spouses was a national of a European Union
or European Economic Area (EEA)
Member State, the said child was born in
Malta and was resident in Malta,
the tax shall be determined as follows
(a) where the chargeable
income does not exceed €17,500, the
tax shall be determined by multiplying
the chargeable income by 0%;
(b) where the chargeable
income exceeds €17,500 but is less
than €26,500, the tax shall be
determined by multiplying the
chargeable income by 15% and then
subtracting €2,625 from the result;
(c) where the chargeable
income exceeds €26,500 but is less
than €60,000, the tax shall be
determined by multiplying the
chargeable income by 25% and then
subtracting €5,275 from the result;
(d) where the chargeable
income exceeds €60,000, the tax shall
be determined by multiplying the
chargeable income by 35% and then
subtracting €11,275 from the result;
(iii) where in the year immediately
preceding the year of assessment
(A) the married couple maintained
under its custody at least two (2) children
each of whom was not over eighteen (18)
years of age, or not over twenty-three (23)
years of age if receiving full-time education
at any university, college or other
educational establishment; and
(B) at least one (1) of the spouses
was a national of a European Union or
European Economic Area (EEA) Member
State or had a long-term resident status in
accordance with the Status of Long-term
Residents (Third Country Nationals)
Regulations; and
(C) in the case where none of the
spouses was a national of a European Union
or European Economic Area (EEA) Member
State, the children so maintained were born
in Malta and were resident in Malta,
the tax shall be determined as follows
(a) where the chargeable
income does not exceed €22,500, the
tax shall be determined by multiplying
the chargeable income by 0%;
(b) where the chargeable
income exceeds €22,500 but is less
than €32,000, the tax shall be
determined by multiplying the
chargeable income by 15% and then
subtracting €3,375 from the result;
(c) where the chargeable
income exceeds €32,000 but is less
than €60,000, the tax shall be
determined by multiplying the
chargeable income by 25% and then
subtracting €6,575 from the result;
(d) where the chargeable
income exceeds €60,000, the tax shall
be determined by multiplying the
chargeable income by 35% and then
subtracting €12,575 from the result
Provided that an individual
who is a national of a European Union
or European Economic Area (EEA)
Member State may qualify for the rates
specified in sub-paragraphs (i) or (ii) or
(iii) even where his spouse is not
resident in Malta if the other conditions
referred to in the relevant sub-
paragraph are satisfied and the
Commissioner is satisfied that at least
ninety per cent (90%) of the couple’s
world-wide income is derived from
Malta;";
(ii) paragraph (b) thereof shall be substituted by the
following new paragraph
"(b) in the case of any other individual resident in
Malta in the year immediately preceding the year of
assessment, including each spouse where an election has
been made for a separate return for the purposes of
article 49A or where the responsible spouse has opted for
a separate computation for the purposes of article 50
(i) where the provisions of the other sub-
paragraphs do not apply, the tax shall be
determined as follows
(a) where the chargeable income
does not exceed €12,000, the tax shall be
determined by multiplying the chargeable
income by 0%;
(b) 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;
(c) 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;
(d) 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;
(ii) where in the year preceding the year
of assessment the said individual was a parent and
maintained under his custody a child, or paid
maintenance in respect of his child as provided in
article 12(1)(t), and such child was not over
eighteen (18) years of age, or not over twenty-
three (23) years of age if receiving full-time
education at any university, college or other
educational establishment, then unless the
provisions of sub-paragraphs (iii), (iv) or (v)
apply to such a parent, the tax shall be determined
as follows
(a) where the chargeable income
does not exceed €13,000, the tax shall be
determined by multiplying the chargeable
income by 0%;
(b) 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;
(c) 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;
(d) 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;
(iii) where in the year immediately
preceding the year of assessment the said
individual was unmarried or a widower, or was a
spouse separated de jure or de facto, or was
divorced, and the said individual
(A) wholly maintained under his
sole custody a child who was not over
eighteen (18) years of age, or not over
twenty-three (23) years of age if receiving
full-time education at any university,
college or other educational establishment
or serving an apprenticeship with a view to
qualifying in a trade or profession, or who
was incapacitated by infirmity from
maintaining himself, and who, in any case,
was not in receipt of income, in his own
right, in excess of three thousand and four
hundred euro (€3,400); and
(B) where a children’s allowance is
payable in respect of that child under the
Social Security Act was recognised by the
Director General (Social Security) as the sole
beneficiary of the children’s allowance
payable in respect of the said child; and
(C) was not in receipt of any
financial assistance in respect of the
maintenance of the said child from the other
parent of the said child; and
(D) was not living or residing at the
same house with the other parent of the said
child,
the tax shall be determined,
unless that individual qualifies for a
more beneficial tax rate in accordance
with sub-paragraphs (iv) or (v), in
accordance with the table set out in
paragraph (a)(i);
(iv) subject to sub-paragraph (v) where, in
the year immediately preceding the year of
assessment
(A) the said individual
(a) maintained under his
custody a child who is his child or a
child of his spouse or a child of a
person who is that individual’s
cohabitant as certified by a certificate
of cohabitation issued in accordance
with the Cohabitation Act; or
(b) paid
maintenance
as
provided in article 12(1)(t) in respect of
his child; and
(B) the said individual or his spouse
was a national of a European Union or
European Economic Area (EEA) Member
State or had the status of a long-term
resident in accordance with the Status of
Long-term Residents (Third Country
Nationals) Regulations; and
(C) the said child was not over
eighteen (18) years of age, or not over
twenty-three (23) years of age if receiving
full-time education at any university, college
or other educational establishment; and
(D) in the case where neither the said
individual nor his spouse was a national of a
European Union or European Economic
Area (EEA) Member State, the said child
was born in Malta and was resident in Malta,
the tax shall be determined as follows
(a) where the chargeable
income does not exceed €14,500, the
tax shall be determined by multiplying
the chargeable income by 0%;
(b) where the chargeable
income exceeds €14,500 but is less
than €21,000, the tax shall be
determined by multiplying the
chargeable income by 15% and then
subtracting €2,175 from the result;
(c) where the chargeable
income exceeds €21,000 but is less
than €60,000, the tax shall be
determined by multiplying the
chargeable income by 25% and then
subtracting €4,275 from the result;
(d) where the chargeable
income exceeds €60,000, the tax shall
be determined by multiplying the
chargeable income by 35% and then
subtracting €10,270 from the result;
(v) where in the year immediately
preceding the year of assessment
(A) the said individual
(a) maintained under his
custody at least two (2) children each
of whom is his child or a child of his
spouse or a child of a person who is
that individual’s cohabitant as
certified by a certificate of
cohabitation issued in accordance
with the Cohabitation Act; or
(b) paid
maintenance
as
provided in article 12(1)(t) in respect of
at least two (2) children who are his
children; or
(c) satisfied the condition in
clause A(a) in respect of one (1) child
and satisfied the condition in clause
A(b) in respect of another child; and
(B) the said individual or his spouse
was a national of a European Union or
European Economic Area (EEA) Member
State or had a long-term resident status in
accordance with the Status of Long-Term
Residents (Third Country Nationals)
Regulations; and
(C) each of the said two (2) children
was not over eighteen (18) years of age, or
not over twenty-three (23) years of age if
receiving full-time education at any
university, college or other educational
establishment; and
(D) in the case where neither the said
individual nor his spouse was a national of a
European Union or European Economic
Area (EEA) Member State, the said two (2)
children were born in Malta and were
resident in Malta,
the tax shall be determined as follows
(a) where the chargeable
income does not exceed €18,500, the
tax shall be determined by multiplying
the chargeable income by 0%;
(b) where the chargeable
income exceeds €18,500 but is less
than €25,500, the tax shall be
determined by multiplying the
chargeable income by 15% and then
subtracting €2,775 from the result;
(c) where the chargeable
income exceeds €25,500 but is less
than €60,000, the tax shall be
determined by multiplying the
chargeable income by 25% and then
subtracting €5,325 from the result;
(d) where
the
chargeable
income exceeds €60,000, the tax shall
be determined by multiplying the
chargeable income by 35% and then
subtracting €11,325 from the result.";
(b)
sub-article (26) thereof shall be amended as follows
(i) in the definition "licensed coach" the words "a
club or team registered with the Council" shall be
substituted by the words "a club or team registered with, or
recognised by the Council";
(ii) in the definition "registered player or athlete"
the words "a club or team registered with the Council"
shall be substituted by the words "a club or team registered
with, or recognised by the Council".
PART V
AMENDMENTS TO THE SOCIAL SECURITY ACT
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".
In sub-article (1) of article 2 of the principal Act, in the
definition "Director", including the proviso thereto, the words
"Commissioner for Inland Revenue", wherever they occur, shall be
substituted by the words "Commissioner for Tax and Customs".
In article 11 of the principal Act the words "at the Department Amendment of
of Inland Revenue" shall be substituted by the words "at the Malta Tax article
principal Act.
and Customs Administration".
Immediately after sub-article (6) of article 23 of the principal Amendment of
article 23 of the
Act there shall be added the following new sub-article
principal Act.
"(7) With effect from 1st January 2026, a person who
reached the age of sixty-five (65) years and is benefitting from a
Supplementary Allowance in accordance with the provisions of
article 73, shall be eligible for the Free Medical Aid without the
need to satisfy the means test according to the provisions of Part
III of the Second Schedule.".
Paragraph (d) of sub-article (1) of article 26 of the principal Amendment of
article 26 of the
Act shall be amended as follows
principal Act.
(a) immediately after the first proviso thereof there shall
be added the following new proviso
"Provided further that with effect from 3rd
January 2026, a person who is awarded the highest
impairment rating, in accordance with the Impairment
Tables Regulations by the medical panel appointed under
article 106, shall be entitled to a rate equivalent to the two
thirds pension in accordance with the contribution
conditions as referred to in the provisions of this Act and
if the entitlement is more advantageous:";
(b) in the third proviso thereof the words "the Twelfth
Schedule." shall be substituted by the words "the Twelfth
Schedule:" and immediately thereafter there shall be added the
following new proviso
"Provided further that with effect from 1st
January 2026, in the case of a person who is certified to be
suffering from the bi-polar condition, depression by
psychosis or acute depression, and if the person who is
suffering from such a condition proves to the satisfaction
of the Director that he has been undergoing regular
treatment for such a condition for at least three (3) years
and that, within the three (3) months immediately prior to
his claim, his condition had been evaluated by a
psychiatrist who is, or was a consultant psychiatrist in
Government employment and certified by the said
psychiatrist to be suffering from such condition, and the
contribution conditions as provided in article 17 are
satisfied, 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 with
the Twelfth Schedule and may participate in insurable
employment on part-time basis as advised by the
psychiatrist and confirmed by the medical panel appointed
in accordance with article 106.".
Paragraph (b) of article 31 of the principal Act shall be
substituted by the following new paragraph
"(b) the applicable additional allowance in accordance
with the provisions of the Twelfth Schedule and the child or
children of the widow or widower concerned have not yet
reached the age of twenty-three (23); sohowever that where a
widow or widower is entitled to an increase in their pension rate
in accordance with this paragraph such widow or widower shall
not be entitled to the increase referred to in paragraph (a).".
Immediately after the third proviso to sub-article (9) of article
85 of the principal Act there shall be added the following new proviso
"Provided further that subject to the provisions of
this Act, with effect from 1st January 2026, it shall be the right of
a parent to be paid a one-time child birth or adoption bonus of
one thousand euro (€1,000) upon the registration in the Public
Registry of the birth of the first child or an adoption, a one-time
bonus of one thousand and five hundred euro (€1,500) for the
second birth or subsequent adoption registered at the Public
Registry, and a one-time bonus of two thousand euro (€2,000) for
every subsequent birth or the adoption of subsequent children of
that parent registered at the Public Registry:".
Article 116 of the principal Act shall be amended as follows
(a)
sub-article (1) thereof shall be amended as follows
(i) immediately after the words "shall be due and
payable to the Director:" there shall be added the following
new proviso
"Provided that as from 1st January 2026 the further
contribution referred to in paragraphs (c) and (d) of this
sub-article shall be substituted by interest per month as
provided for in article 44(2A) of the Income Tax
Management Act and the Income Tax (Rate of Interest)
Rules, of the total difference obtaining from the rate at
which such contributions were paid and the applicable
rate due at the time when such contributions were due
in accordance with the provisions of this Act:";
(ii) in the current proviso thereto, the words
"Provided that" shall be substituted by the words "Provided
further that";
(b)
sub-article (5) thereof shall be amended as follows
(i) the first proviso thereof shall be substituted by
the following new proviso
"Provided that in the case of a person born on or
after 1 st January 1962, any contribution payable in
terms of this article shall be subject to interest per
month as provided for in article 44(2A) of the Income
Tax Management Act and the Income Tax (Rate of
Interest) Rules:";
(ii) the fourth proviso thereof shall be substituted
by the following new proviso
"Provided further that such option may also be
granted to a person who has attained the age of fifty-
nine (59) years and is in receipt of an Invalidity
Pension in accordance with the provisions of article
26, or is in receipt of a Carers Allowance, Increased
Carers Allowance or Carers Grant in accordance with
the provisions of article 68 when the claim is made:";
(iii) immediately after the fourth proviso thereof, as
substituted, there shall be added the following new
proviso
"Provided further that such option may also be
granted to a person who has attained the age of fifty-
nine (59) years but has not yet reached the age of
sixty-five (65) years who is not engaged in insurable
employment or self-occupation, if by virtue of such
payment of contributions such person has a minimum
of ten (10) years paid contributions to qualify for a
pension in accordance with the provisions of this
Act:".
In sub-articles (1) and (2) of article 116B of the principal Act
the words "Commissioner for Inland Revenue" shall be substituted by
the words "Commissioner for Tax and Customs".
In sub-article (1) of article 132 of the principal Act the words
"Commissioner for Inland Revenue" shall be substituted by the words
"Commissioner for Tax and Customs".
Immediately after paragraph (e) of the proviso to item 2 of the
Eleventh Schedule to the principal Act there shall be added the
following new paragraph
"(ea) with effect from the 1 st January 2026, the provisions
of paragraphs (d) and (e) shall also apply to a person born on or
after 1st January 1962;".
In the fourth proviso to paragraph (a) of item (7) of the
Thirteenth Schedule to the principal Act the words "the sum of
€23,500." shall be substituted by the words "the sum of €23,500:" and
immediately thereafter there shall be added the following new proviso
"Provided further that notwithstanding the provisions
of this item, in the case of a person born on, or before 31st of
December 1961, on the basis of the fact that the maximum
pensionable income of such a person shall increase gradually to
reach the maximum pensionable income of a person born on, or
after 1st of January 1962, with effect from 1st of January 2026
the pensionable income of a person born on, or before the 31st of
December 1961 shall not exceed the sum of €25,500.".
The Fifteenth Schedule to the principal Act shall be
substituted by the following new Schedule
"FIFTEENTH SCHEDULE
(Article 27)
Qualifying percentages for the payment of disability assistances
Disability Benefit
30% to 44.99%
Disability Assistance
From 45% to 59.99%
Severe Disability Assistance
From 60% to 74.99%
Increased Severe Disability Assistance
Not less than 75%
Assistance for the Visually Impaired
Not less than 50%".
PART VI
AMENDMENTS TO THE MOTOR VEHICLES
REGISTRATION AND LICENSING ACT
(1) This Part amends the Motor Vehicles Registration and Amendments to
Licensing Act and it shall be read and construed as one with the the
Vehicles
Motor Vehicles Registration and Licensing Act, hereinafter in this Registration
Licensing Act.
Part referred to as the "principal Act".
(2) The provisions of this Part shall be deemed to have come into
force on the 1st January, 2026.
Sub-article (4) of article 8 of the principal Act shall be Amendment of
article 8 of the
substituted by the following new sub-article
principal Act.
"(4) M1 motor vehicles with CO₂ emission levels
equal to, or higher than two-hundred (200) according to NEDC
standard or two-hundred and twenty (220) or higher according to
WLTP standard, and having an emission level equivalent to the
latest European Standard or latest European Standard minus one
or latest European Standard minus two, and motor cycles with an
engine capacity equal to, or higher than eight-hundred and one
(801cc) which are to be registered for the first time, or are
already registered as racing vehicles with the Authority in
accordance with this Act, may be registered to be used on the
road in Malta solely and exclusively on Fridays as from 18.00
onwards, Saturdays, Sundays, national holidays and other public
holidays
Provided that registration tax on the said M1 motor
vehicles and motorcycles shall be charged at the rate established
in the Second Schedule.".
Article 21 of the principal Act shall be amended as follows
Amendment of
article 21 of the
principal Act.
(a) sub-article (4) thereof shall be substituted by the
following new sub-article
"(4) When a new motor vehicle is imported or
brought in permanently by a person for his own personal
use, the application for the registration of the said motor
vehicle together with the required documents shall be
submitted to the Authority within thirty days (30)
following the motor vehicle’s arrival in Malta.";
(b) immediately after sub-article (4) thereof, as
substituted, there shall be added the following new sub-articles
"(4a) When a person, for unjustified reasons, fails to
comply with the provisions of sub-article (4), he shall be
liable to an administrative penalty of thirty euro (€30) for
each day that the vehicle remains not registered on the
expiry of the said thirty (30) days
Provided that when a person appeals in
accordance with article 11A or any regulations made under
this Act, the said application and documentation shall be
submitted within twenty (20) days from the decision of the
Tribunal
Provided further that where a person applies
for an exemption under article 19, that person shall submit
the said application for registration and the documentation
accompanying it within twenty (20) days from the
notification of the decision relating to the application for
the said exemption.
(4b) The administrative penalty established in sub-
article (4a) shall not apply when the vehicle is an
agricultural tractor or a vehicle registered under Category
F of the First Schedule.".
The First Schedule to the principal Act shall be amended as
(a) the heading of Category C thereof shall be
substituted by the following new heading
"Category C: Vintage Category N vehicles for
private use, special purpose vehicles and tractor units";
(b) the heading of Category D thereof shall be
substituted by the following new heading
"Category D: Agricultural tractors Category T that
are supplimented by an ‘a’ index";
(c) immediately after Category F thereof there shall be
added the following new category
"Category G: Mobile cranes with a lifting capacity
exceeding 50 tonnes
Mobile cranes with a lifting
capacity
exceeding
0%".
tonnes…….......
Category C of the Second Schedule to the principal Act shall Amendment of
the Second
be substituted by the following new category
Schedule to the
principal Act.
"Category C: Motor cycles, Motor Tricycles and Category T L5e
vehicles
Motor Cycles and Motor Tricycles Engine capacity
Not exceeding 350cc
0%
Exceeding 350cc but not exceeding 500cc
cc x RV x 0.033%
Exceeding 500cc but not exceeding 800cc
cc x RV x 0.034%
Exceeding 800cc
cc x RV x 0.035%
Battery electric motor cycle
0%
".
The Fourth Schedule to the principal Act shall be amended as Amendment of
the Fourth
follows
Schedule to the
principal Act.
(a) in item 1A thereof the words "Annual Circulation
Licence fees for M1 motor vehicles registered on the 1st January,
2009 and thereafter (excluding those in item 6), and motor
vehicles for hire and light passenger transport vehicles,
registered prior to the 1st January, 2010." shall be substituted by
the words "Annual circulation licence fees for M1 motor
vehicles, caravans and motor homes registered on the 1st
January, 2009 and thereafter, excluding those referred to in item
6, caravans and motor homes, and motor vehicles for hire and
light passenger transport vehicles registered before the 1st
January, 2010.";
(b) in item 2 thereof the words "M1 motor vehicles
registered in Malta" shall be substituted by the words "M1 motor
vehicles, caravans and motor-homes registered in Malta";
(c) item 3 thereof shall be substituted by the following
new item
"Annual circulation licence fees for motor cycles,
L5e and quad bikes L7e, including Categories T1b, T2b,
T3b, T4b and T5b registered on the 1st January, 2009 and
thereafter
€
€
€
€
€
€
€
€
€
€
€
€
".
(d) item 4 thereof shall be substituted by the following
new item
"4. Annual circulation licence fees for motor
cycles and quad bikes L7e, including Categories T1b, T2b,
T3b, T4b and T5b registered before the 1st January, 2009
€
€
€
€
€
€
€
€
€
€
€
€
€
Exceeding 50cc but not
Exceeding 125cc but not
exceeding 350cc
Exceeding 350cc but not
exceeding 500cc
Exceeding 500cc but not
exceeding 800cc
Exceeding 800cc
Battery/electric
Motorcycle
Quad bikes L7e including
Categories T1b, T2b, T3b,
T4b and T5b
Year
Engine Capacity
€
€
€
€
€
Not exceeding 50cc
Exceeding 50cc but not exceeding 125cc
Exceeding 125cc but not exceeding 350cc 25
Exceeding 350cc but not exceeding 500cc 70
Exceeding 500cc but not exceeding 800cc
Exceeding 800cc
Battery/electric Motorcycle
Quad bikes L7e including Categories
T1b, T2b, T3b, T4b and T5b
";
(e) immediately after item 13 thereof there shall be
added the following new item
"14. Annual circulation license fees for caravans
and motor homes registered with the Authority on, or
subsequently the 1st January, 2009 shall be specified under
item 2.".
PART VII
AMENDMENTS TO THE INCOME TAX MANAGEMENT ACT
This Part amends the Income Tax Management Act and shall Amendments to
be read and construed as one with the Income Tax Management Act, the
Management
hereinafter in this Part referred to as the "principal Act".
Act.
Sub-article (1) of article 28 of the principal Act shall be
substituted by the following new sub-article
(1) Every notice which shall be given by the
Commissioner under the Income Tax Acts shall be
signed by the Commissioner or by a person appointed
by him from time to time for such purpose, and every
such notice, including a receipt for payment of tax,
shall be valid if the signature of the Commissioner or of
such person is duly printed, stamped or written thereon
Provided that any notice in writing under the
provisions of the Income Tax Acts to any person
requiring him to furnish information to the
Commissioner, or any other notice under the Income
Tax Acts requiring the attendance of any person or
witness before the Commissioner shall be personally
signed by the Commissioner or by any person duly
authorised by him
Provided further that any notice given
electronically by the Commissioner shall not require to
be signed and shall be valid if it is
(a) made available to that person through
the web portal designated by the Commissioner
for this purpose; or
(b) sent to that person from any electronic
address belonging to the Commissioner, including
generic electronic addresses, or belonging to a
person authorised by the Commissioner.".
Sub-article (1) of article 29 of the principal Act shall be
substituted by the following new sub-article
(1) Notice may be served on a person either
"Service of notices.
personally or by electronic means to his email address
as provided to the Commissioner or made available to
that person through the web portal designated by the
Commissioner for that purpose or by being sent by post
to his last known business or private address, and shall
in the latter case, unless the contrary be proven, be
deemed to have been served, in the case of persons
resident in Malta, on the third (3rd) day following the
day of postage, and in the case of persons not resident
in Malta, the day subsequent to the day on which the
notice would have been received in the ordinary course
by post, and in proving such service it shall be
sufficient to prove that the letter containing the notice
was properly addressed and posted
Provided that where such notice is not served
because the person could not be found or for other
reasons attributable to him and the Commissioner
publishes a notice on the web portal designated for that
purpose or publishes a notice in the Gazette and in one
(1) or more daily newspapers, stating that a notice has
been given and may be collected from the location
indicated by the Commissioner, then such notice shall be
deemed to have been duly served.".
In sub-article (2A) of article 31 of the principal Act the words Amendment of
"within five years" shall be substituted by the words "within ten (10) article
principal Act.
PART VIII
AMENDMENTS TO THE EXCISE DUTY ACT
This Part amends the Excise Duty Act and shall be read and Amendments to
construed as one with the Excise Duty Act, hereinafter in this Part the
Act.
referred to as the "principal Act".
(2)
The provisions of this Part shall come into force on 1st April
2026.
In the principal Act the following words shall be substituted General
amendment to
the principal
Act.
(a) the words "band or stamp" shall be substituted,
wherever they occur, by the words "excise stamp";
(b) the words "bands or stamps" shall be substituted,
wherever they occur, by the words "excise stamps";
(c) in the Maltese version only, the words "faxxa",
"faxxa jew bolla" or "faxxa jew bolla tas-sisa" shall be
substituted, wherever they occur, by the words "bolla tas-sisa";
(d) in the Maltese version only, the words "faxex" and
"faxex ta’ dazju tas-sisa" shall be substituted, wherever they
occur, by the words "bolol tas-sisa";
(e) in the Maltese version only, the word "sigarrett" shall
be substituted, wherever it occurs, by the word ""sigarett";
(f) in the Maltese version only, the word "sigarretti"
shall be substituted, wherever it occurs, by the word "sigaretti".
Article 2 of the principal Act shall be amended as follows
Amendment of
article 2 of the
principal Act.
(a) the definition "authorised tax warehouse" shall be
deleted and immediately after the definition "authorised and
empowered" there shall be added the following new definition
" "authorised tax warehouse" means a place where
excisable goods are produced, processed, held, received or
dispatched under duty suspension arrangements by an
authorised tax warehouse keeper in the course of his
business, subject to certain conditions laid down by the
Commissioner;";
(b) immediately after the definition "beer production"
there shall be added the following new definition
" "certified consignee" means a natural or legal
person duly registered with the competent authorities of a
Member State of destination to receive excisable goods, in
the course of his business, which were released for
consumption in the territory of one Member State and
which are subsequently transferred to the territory of
another Member State;";
(c) immediately after the definition "certified consignee"
there shall be added the following new definition
" "certified consignor" means a natural or legal
person duly registered with the competent authorities of a
Member State of dispatch to send excisable goods, in the
course of his business, which were released for
consumption in the territory of one Member State and
which are subsequently transferred to the territory of
another Member State;";
(d) immediately after the definition "the Minister" there
shall be added the following new definition
" "nicotine pouch" means nicotine containing
products intended for the intake of nicotine into the human
body, for oral application, excluding products for
inhalation, and products intended to assist tobacco use
cessation classified under HS Code 2404919000;";
(e) the definition "release for consumption" shall be
substituted by the following new definition
" "release for consumption" means
(a)
the release of excisable goods, including
irregular release,
from
a
duty
suspension
arrangement;
(b) the holding of excisable goods outside a
duty suspension arrangement where excise duty has
not been levied pursuant to the applicable provisions
of Community law and national legislation;
(c) the production of excisable goods,
including irregular production, outside a duty
suspension arrangement;
(d) the entry into Malta of excisable goods,
including irregular entry into Malta, unless the
excisable goods are placed, immediately upon entry,
under a duty suspension arrangement;";
(f) immediately after the definition "release for
consumption", as added, there shall be added the following new
definition
" "smokeless tobacco product" means a tobacco
product not involving a combustion process, including
heated tobacco products as defined in regulation 2 of the
Manufacture, Presentation and Sale of Tobacco and
Related Products Regulations and herbal products not
involving a combustion process but excluding chewing
tobacco, nasal tobacco or tobacco for oral use;".
Immediately after sub-article (4) of article 3 of the principal Amendment of
article 3 of the
Act there shall be added the following new sub-article
principal Act.
"(5) (a) Notwithstanding the provisions of sub-article
(1) and the rates specified in the Fifth Schedule, no excise duty
shall be charged or levied on non-harmonised excisable goods
listed in Schedules 5A to 5H of the Fifth Schedule which are
imported in consignments, where the intrinsic value thereof does
not exceed one hundred and fifty euro (€150), provided that all
the following conditions are satisfied
(i) the consignment is imported by means of postal
services or by an authorised courier operator;
(ii) the consignee is a natural person not acting in
the course of any business, trade, profession or vocation;
(iii) the goods are intended solely for the private use
of the consignee or members of his family and neither the
nature and the quantity of the goods nor any document
relating thereto indicates any commercial purpose;
(iv) the consignment is of an occasional nature and
does not form part of a series of consignments which, taken
together, indicate any commercial intent; and
(v) the goods are not subject to any prohibitions or
restrictions under European Union law.
(b)
For the purposes of paragraph (a)
(i) "intrinsic value" means the value of the goods
determined in accordance with the customs valuation rules
established in Regulation (EC) No. 1186/2009, excluding
the cost of transport and insurance;
(ii) "postal services" or "authorised courier
operator" includes any postal service and any private
courier authorised to effect the clearance of low-value
consignments in Malta;
(iii) compliance with the conditions in paragraph (a)
shall be verified by the Commissioner on the basis of the
customs declaration, including any simplified declaration,
the particulars of the consignee and consignor and such
other information or checks as the Commissioner may
deem as applicable.
(c) The exemption provided under this sub-article shall
be without prejudice to sub-article (4) in respect of small
consignments of a non-commercial nature sent by natural
persons to other natural persons from any third country.
(d) The Minister may make regulations for the purpose
of ensuring the correct implementation of this sub-article,
including further conditions, procedures or forms of declaration
required for the application of the exemption provided in this
sub-article.".
Sub-article (4) of article 4 of the principal Act shall be
Article 16A of the principal Act shall be amended as follows
(a) sub-article (3) thereof shall be substituted by the
following new sub-article
"(3) If a person commits the irregularity mentioned
in article 16(1)(v), the Commissioner may, if the offender
admits, refrain from instituting proceedings in terms of this
Act and impose a penalty equivalent to two hundred euro
(€200).";
(b) immediately after sub-article (3) thereof, as
substituted, there shall be added the following new sub-articles
"(4) For the purpose of this article, the signing of
this agreement shall also mean that the person is
renouncing to any claim that he may have against the
Commissioner, State Advocate or Attorney General
resulting from the case.
(5) Without prejudice to any other provision in this
Act, when the endangered duty in accordance with this
Act together with any other duty and tax mentioned in
the Customs Ordinance altogether does not exceed one
hundred and fifty euro (€150), the provisions of article
63(6) of the Customs Ordinance shall apply.".
In the Second Schedule to the principal Act the following Amendment of
the Second
words and figures
Schedule to the
principal Act.
"ETHYL ALCOHOL, excluding Spirit based €0.14 per % vol.
flavoured beverages of an alcoholic content over per litre
1.2% but not exceeding 7%
Spirit based flavoured beverages of an alcoholic
€0.42 per % vol.
content over 1.2% but not exceeding 7%
per litre"
shall be substituted by the following words and figures
"ETHYL ALCOHOL
€0.136 per % vol. per
litre".
Item 2 of the Third Schedule to the principal Act shall be Amendment of
the Third
substituted by the following new item
Schedule to the
principal Act.
"2. For the purpose of the ad valorem duty, the retail
their representative for the retail sale of cigarettes; where no such
In the Fourth Schedule to the Principal Act immediately after
the words
"- Inland Navigation between
Malta and Gozo by vessels in
line with Port Notice No. TM/
PYD/PN/02/2021
If used for electric power
0"
generation
there shall be added the following new words
"Fuel oil falling under HS Code €330 per 1000 litres".
27101962 with density 0.8200 to
0.8900 is to be considered as Gas
Oil
The Sixth Schedule to the principal Act shall be amended as
follows
(a)
Part A thereof shall be amended as follows
(i)
regulation 13 thereof shall be amended as
follows
(ia) in the Maltese version only, the words
"bands jew tags" shall be substituted by the words
"bolli tas-sisa";
(ib) sub-regulation (6) thereof shall
be
substituted by the following new sub-regulation
"(6) (a) Any registered consignor,
registered consignee, registered merchant,
certified consignor or certified consignee shall
purchase the excise stamp within five (5)
working days from when the excisable goods,
on which the excise stamps are required to be
affixed, enter Malta, except in the case of an
excise stamp to be affixed by an authorised tax
warehouse keeper.
(b) The excise stamp shall be
affixed to the excisable goods by not later
than five (5) working days from date
when the excise stamp is purchased,
except where the excise stamp is to be
affixed by an authorised tax warehouse
keeper.";
(ic) sub-regulation (7) thereof shall
be
substituted by the following new sub-regulation
"(7) (a) Any registered consignor,
registered consignee, registered merchant,
certified consignor or certified consignee who
fails to purchase the excise stamp within five
(5) working days from the date of entry to
Malta of the excisable goods on which the
stamp shall be affixed, except where the excise
stamp shall be affixed by an authorised
warehouse keeper, shall on conviction be liable
to a fine (multa) of one hundred and fifty euro
(€150) and the court shall also order the
forfeiture of the said excisable goods according
to law, as applicable.
(b) Any registered consignor,
registered
consignee,
registered
merchant, certified consignor or certified
consignee who fails to affix the excise
stamp within five (5) working days from
when it is purchased, except for an
authorised tax warehouse keeper, shall be
liable on conviction to a fine (multa) of
two hundred euro (€200), and the court
shall also order the forfeiture of the
excise stamps which were not affixed
within the time provided according to
law, as applicable. In addition to this, the
forfeiture of the excisable goods
themselves shall also take place
according to law, as applicable.
(c) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner 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 excisable goods
themselves shall be carried out according
to law, as applicable.
(d) In the case of an irregularity
mentioned in paragraph (b), the
Commissioner while forfeiting the excise
stamps not affixed within the given time
in accordance to law, as applicable, may,
if the offender admits, refrain from
instituting proceedings in terms of this
Act and impose a penalty equivalent to
one-hundred and fifty euro (€150). In
addition to this, the forfeiture of the
excisable goods themselves shall be
carried out according to law, as
applicable.";
(id) sub-regulation (8) thereof shall
be
substituted by the following new sub-regulation
"(8) (a) Every
authorised
tax
warehouse keeper who takes out from the
authorised tax warehouse excisable goods on
which the excise stamp has not been affixed
according to law, shall be liable on conviction
to a fine (multa) of three hundred euro (€300)
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
excisable goods themselves shall also take
place according to law, as applicable.
(b) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner, while forfeiting the excise
stamps that had to be affixed to the
excisable goods 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 excisable
goods themselves shall be carried out
according to law, as applicable.";
(ie) sub-regulation (9) thereof shall
be
substituted by the following new sub-regulation
"(9) (a) Any person, other than an
authorised person, who has in his possession
excise stamps shall be liable on conviction to a
fine (multa) of three hundred euro (€300) and
the Court shall also order the forfeiture of those
excise stamps which had to be affixed to those
goods. In addition, the forfeiture of the
excisable goods themselves shall also be
carried out according to law, as applicable.
(b) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner, while forfeiting 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
excisable goods themselves shall also
take place according to law, as
applicable.";
(ii) immediately after regulation 13 thereof, as
amended, there shall be added the following new
regulations
13A. The Commissioner shall release the excisable
excisable goods by
goods if he is satisfied that the amount of excise duty
and import duty and any other tax due in relation to
excisable goods as provided in this Schedule was paid
according to law prior to the initial inspection
Provided that the provision of this regulation
shall apply, mutatis mutandis, to all parts of this
Schedule.
13B. Any quantity of excisable goods, released as
provided in this Schedule, shall comply with the
provisions of the Act and its regulations, as applicable
Provided that the provision of this regulation
shall apply, mutatis mutandis, to all parts of this
Schedule.";
(iii) regulation 16 thereof shall be substituted by the
following new regulation
16. (1) The authorised tax warehouse keeper
shall provide the Commissioner with a statement on an
accounting period of one (1) calendar month and such
statement shall be provided to the Commissioner
within fifteen (15) days from the expiry of each
accounting period being reported upon.
(2) In cases where any person fails to submit the
statements within the prescribed period of fifteen (15)
days, the Commissioner shall impose an administrative
penalty of one hundred euro (€100) per month (1) or
part thereof until such statement is submitted, which in
any case shall not be later than three (3) months
following the lapse of the said prescribed period of
fifteen (15) days.
(3) Any person who fails to observe this regulation
shall be guilty of an offence and shall be liable on
conviction to a fine (multa) of not more than twenty five
thousand euro (€25,000).
(4) In the case of any breach mentioned in sub-
regulation (3), the Commissioner may, if the offender
admits, refrain from instituting proceedings in
accordance with this Act and impose an administrative
penalty of two thousand euro (€2,000). In addition to
this, the submission of the said statements shall also be
required to be made according to law, as applicable.
(5) (a) The payment of the relative duty
indicated in the statements submitted to the
Commissioner as prescribed shall be effected by not
later than fifteen (15) days from the submission of the
statement.
(b) In cases where any person fails to pay
the duty within the prescribed term of fifteen (15)
days from the submission of the statement, the
Commissioner shall impose an administrative
penalty of one hundred euro (€100) per month (1)
or part thereof until the payment is effected,
which in any case shall be not later than three (3)
months from the day following the submission of
the statement.
(c) Any person who fails to observe the
provisions of this regulation shall be guilty of an
offence liable upon conviction to the punishment
established in the provisions of regulation 16, as
applicable.
(d) In the case of any breach mentioned in
paragraph (c), the Commissioner may, if the
offender admits, refrain from instituting
proceedings in terms of this Act and impose the
penalty established in regulation 16. In addition to
this, the said payments shall also be required to be
made according to law, as applicable.";
(b)
Part B thereof shall be amended as follows
(i) regulation 8 thereof shall be substituted by the
following new regulation
8. Excise duty on alcohol and alcoholic
beverages subject to duty under this Act shall be
leviable and shall be assessed at the prevailing rate at
such time as they are released for consumption and it
shall be paid as provided in regulation 16(2) of Part
A.";
(ii)
regulation 10 thereof shall be amended as
follows
(ia) sub-regulation (1) thereof shall
be
substituted by the following new sub-regulation
"(1) Without prejudice to the provisions
of regulation 9(1), the authorised tax
warehouse keeper shall submit to the
Commissioner a statement as provided in
regulation 16(1) of Part A specifying the
following, as applicable
(a) the quantity in litres of spirit
produced during the relevant period,
specifying the alcoholic strength and type
of spirit;
(b) the quantity in litres of
alcoholic products produced during the
relevant
period,
specifying
type,
alcoholic strength and whether derived
from dilution, blending or other process;
(c) the yield of each bottling
operation for each product, specifying the
number of bottles and their capacity;
(d) the quantity in litres of bulk
spirits kept in stock, specifying type and
strength as at the end of the relevant
period;
(e) the quantity in litres of each
packaged alcoholic product, kept in stock
at the end of the relevant period,
specifying the type, strength and package
description;
(f) the quantity in litres of
products sold or otherwise removed from
the authorised tax warehouse during the
relevant period, specifying the nature of
the transaction;
(g) the quantity in litres of spirits
or other alcoholic products introduced
into the authorised tax warehouse,
indicating the source during the relevant
period, and specifying the types and
strength;
(h) the quantity of products
removed from the authorised tax
warehouse during the relevant period,
specifying the types and whether released
for local consumption, for export or
otherwise.";
(ib) sub-regulation
(2)
thereof
shall
be
deleted;
(iii) regulation 12 thereof shall be amended as
follows
(ia) sub-regulation (5) thereof shall
be
substituted by the following new sub-regulation
"(5) The provisions of paragraphs (a)
and (b) of regulation 13(6) of Part A of the
Sixth Schedule shall apply mutatis mutandis.";
(ib) sub-regulation (6) thereof shall
be
substituted by the following new sub-regulation
"(6) The provisions of paragraphs (a) to
(d) of regulation 13(7) of Part A of the Sixth
Schedule shall apply mutatis mutandis.";
(ic) sub-regulation (7) thereof shall
be
substituted by the following new sub-regulation
"(7) The provisions of paragraphs (a)
and (b) of regulation 13(8) of Part A of the
Sixth Schedule shall apply mutatis mutandis.";
(id) sub-regulation (8) thereof shall
be
substituted by the following new sub-regulation
"(8) The provisions of paragraphs (a)
and (b) of regulation 13(9) of Part A of the
Sixth Schedule shall apply mutatis mutandis.";
(iv) regulation 13 thereof shall be substituted by the
following new regulation
13. (a) Any quantity of ethyl alcohol, fermented
"Article 27 et seq of
beverages and intermediate products found in the
possession of any person in breach of the provisions of
regulations 11 or 12, shall be withheld and the
provisions of article 27 et seq of the Act shall apply and
this without prejudice to any other penalty provided for
in accordance with the Act or any other law.
(b) Any excise stamp which was not
affixed within the prescribed time according to
law, as applicable, and which is found in the
possession of any person in breach of the
provisions of regulations 11 or 12 shall be
withheld and the provisions of Article 27 et seq of
the Act shall apply and this without prejudice to
any other penalty provided for in accordance with
the Act or any other law.";
(v) immediately after regulation 13 thereof, as
substituted, there shall be added the following new
regulation
13A. The provision of regulations 13A and 13B of
Part A of this Schedule shall apply mutatis mutandis.";
(c)
Part C thereof shall be amended as follows
(i)
regulation 6 thereof shall be amended as
follows
(ia) sub-regulation
(1)
thereof
shall
be
amended as follows
-
the words "of the packet:" shall be
substituted by the words "of the packet."; and
-
its proviso shall be deleted;
(ib) in sub-regulation (2) thereof the words
"tobacco used for hand rolled cigarettes" shall be
substituted by the words "cigars, cigarillos, pipe
tobacco, tobacco used for hand rolled cigarettes";
(ic) in sub-regulation (3) thereof the words
"hand rolling tobacco" shall be substituted by the
words "cigars, cigarillos, pipe tobacco, tobacco used
for hand rolled cigarettes";
(id) sub-regulation (6) thereof shall
be
substituted by the following new sub-regulation
"(6) (a) Every
authorised
tax
warehouse keeper who takes out of the
authorised tax warehouse cigarettes, cigars,
cigarillos, pipe tobacco, tobacco used for hand
rolled cigarettes and other smoking tobacco on
which an excise stamp was not affixed
according to law shall on conviction be liable
to a fine (multa) of three hundred euro (€300)
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
said cigarettes, cigars, cigarillos, pipe tobacco,
tobacco used for hand rolled cigarettes and
other smoking tobacco themselves shall also be
carried out according to law, as applicable.
(b) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner, while forfeiting the excise
stamps that had to be affixed to the
cigarettes, cigars, cigarillos, pipe tobacco,
tobacco used for hand rolled cigarettes
and other smoking tobacco 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 said
cigarettes, cigars, cigarillos, pipe tobacco,
tobacco used for hand rolled cigarettes
and other smoking tobacco themselves
shall also be carried out according to the
law, as applicable.";
(ie) sub-regulation (7) thereof shall
be
substituted by the following new sub-regulation
"(7) (a) Excluding persons who are
authorised, every person who has in his
possession excise stamps shall be liable on
conviction to a fine (multa) of three hundred
euro (€300) and the Court shall order the
forfeiture of those excise stamps. In addition,
the forfeiture of the cigarettes, cigars,
cigarillos, pipe tobacco, tobacco used for hand
rolled cigarettes and other smoking tobacco
themselves shall be carried out according to
law, as applicable.
(b) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner while forfeiting 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
cigarettes, cigars, cigarillos, pipe tobacco,
tobacco used for hand rolled cigarettes
and other smoking tobacco themselves
shall be carried out according to law, as
applicable.";
(ii) regulation 7 thereof shall be substituted by the
following new regulation
7. (a) Any quantity of cigarettes, cigars,
"Article 27 et seq of
cigarillos, pipe tobacco, tobacco used for hand rolled
cigarettes and other smoking tobacco found in the
possession of any person in breach of the provisions of
regulations 5 or 6, shall be withheld and the provisions
of article 27 et seq of the Act shall apply and this
without prejudice to any other penalty provided for
under the Act or any other law.
(b) Any excise stamp which was not
affixed within the prescribed term according to
law as applicable and which are in possession of
any person in breach of the provisions of
regulations 5 or 6, shall be withheld and the
provisions of article 27 et seq of the Act shall
apply and this without prejudice to any other
penalty provided for under the Act or any other
law.";
(iii) regulation 7A thereof shall be amended as
follows
(ia) sub-regulation (9) thereof shall
be
substituted by the following new sub-regulation
"(9) (a) Any
person,
with
the
exception of persons who are authorised, who
has in his possession excise stamps shall be
liable on conviction to a fine (multa) of three
hundred euro (€300) and the court shall order
the forfeiture of those excise stamps. In
addition, the forfeiture of the water-pipe
tobacco itself shall also be carried out
according to law, as applicable.
(b) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner, while forfeiting excise
stamps not affixed within the stipulated
time 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
water-pipe tobacco itself shall also be
carried out
according
to
law,
as
applicable.";
(ib) sub-regulation (10) thereof shall be
substituted by the following new sub-regulation
"(10) (a) Any quantity whatsoever of
water-pipe tobacco which is found in the
possession of any person in breach of the
provisions of these regulations, shall be
withheld and the provisions of article 27 et seq
of the Act shall apply and this without
prejudice to any other penalty provided for in
accordance with the Act or any other law.
(b) Any excise stamp which was
not affixed within the prescribed term
according to law as applicable and which
is in possession of any person in
contravention with these regulations,
shall be withheld and the provisions of
article 27 et seq of the Act shall apply and
this without prejudice to any other
penalty provided for in accordance with
the Act or any other law.";
(iv) regulation 8 thereof shall be substituted by the
following new regulation
8. Excise duty on cigarettes and tobacco is due
when they are offered for local consumption and shall
be paid by the authorised tax warehouse keeper as
provided in regulation 16(2) of Part A.";
(v)
regulation 11A shall be amended as follows
(ia) in sub-regulation (1) thereof immediately
after the words "the Track and Trace System" there
shall be added the words "and any other ancillary,
additional and, or updated phases of the system";
(ib) sub-regulation (2) thereof shall
be
substituted by the following new sub-regulation
"(2) Every tobacco manufacturer and
tobacco importer shall
(a) be a tax warehouse keeper
authorised to operate from an authorised
tax warehouse or a registered consignee;
(b) be duly registered in the Track
and Trace system; and
(c) abide by the rules and
practices of the said Track and Trace
System and any other ancillary, additional
and, or updated phases of the said
system.";
(ic) sub-regulation (3) thereof shall
be
substituted by the following new sub-regulation
"(3) In the absence of registration or
authorisation in accordance with sub-regulation
(2), the requirements thereof shall be deemed to
be breached.";
(id) immediately after sub-regulation (3)
thereof, as substituted, there shall be added the
following new sub-regulations
"(4) Importers, wholesalers and distributors
involved in the tobacco products distribution network
shall carry out scanning procedures on any goods
provided for in regulation 14(5) of the Manufacture,
Presentation and Sale of Tobacco and Related Products
Regulations. Any tobacco products found to be in
violation of these regulations shall be removed from
retail distribution.
(5) Any tobacco products found in retail outlets
which are not compliant with the Track and Trace
System procedures, shall be withheld and the provisions
of article 27 of the Act shall apply.
(6) Any person who fails to scan tobacco products
in compliance with the Track and Trace System
procedures according to these regulations, shall be liable
on conviction to a penalty of ten euro (€10) per unique
identifier, which penalty shall in no case be less than one
hundred euro (€100). In addition to the penalty imposed,
the court shall order the forfeiture of the tobacco
products
Provided that the phrase "any person," in this
sub-regulation shall exclude the operator and, or the
licence holder of a retail outlet.
(7) In the case of an irregularity committed by any
person in accordance with this regulation, the
Commissioner may, if the offender admits, refrain from
instituting proceedings in accordance with this Act,
release the goods and, in cases of tobacco products
which, although in breach of the procedure regulating
the supply chain, are nevertheless in conformity with
regulation 14 (2) of the Manufacture, Presentation and
Sale of Tobacco and Related Products Regulations,
impose a penalty of three euro and fifty cents (€3.50)
per unique identifier, which penalty shall in no case be
less than thirty-five euro (€35)
Provided that the release of goods shall be
subject to the recording of goods in terms of these
regulations and in terms of regulation 14(5) of the
Manufacture, Presentation and Sale of Tobacco and
Related Products Regulations
Provided further that if the provisions of this
sub-regulation are applied, there shall be no suspension
of licence
Provided further that the phrase "any person," in
this sub-regulation shall exclude the operator and, or the
licence holder of a retail outlet.";
(vi) regulation 12 thereof shall be substituted by the
following new regulation
12. (1) The authorised tax warehouse keeper of
periodic statements.
tobacco and tobacco products shall submit to the
Commissioner a statement specifying, in respect of the
production of each product, during such accounting
period as the Commissioner may prescribe in
accordance with regulation 16(1) of Part A and there
shall be compiled all the information required to be
provided, classified separately under leaf tobacco,
tobacco substitutes, tobacco imported cut and tobacco
imported cut and blended, as follows
(a) the weight of leaf tobacco, tobacco
substitutes and tobacco imported cut or cut and
blended but not further manufactured, held by
him on the first day of such period at any
authorised tax warehouse registered in his name;
(b) the weight of any tobacco as aforesaid
acquired by him during each such period, stating
from where they were acquired;
(c) the weight of any tobacco as aforesaid
sold or otherwise disposed of during such period,
and to whom it was sold, or in whose favour it was
disposed of;
(d) the quantity of each product
manufactured by him during each such period; and
(e) the weight of offcuts resulting from the
manufacture of each tobacco product during each
such period at any authorised tax warehouse
registered in his name.
(2) The said statement shall be submitted to the
Commissioner within the prescribed period in
accordance with regulation 16(1) of Part A and shall be
so compiled as to specify the information required to be
furnished, classified separately under leaf tobacco,
tobacco substitutes, tobacco imported cut and tobacco
imported cut and blended.
(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 twenty-five thousand euro
(€25,000).";
(d)
Part D thereof shall be amended as follows
(i) regulation 12 thereof shall be substituted by the
following new regulation
12. (1) The authorised tax warehouse keeper
shall submit to the Commissioner a statement as
prescribed in regulation 12 of Part A specifying the
following details
(a) the quantity in metric tons of crude oil
or gas extracted from any source imported and
introduced into the authorised tax warehouse,
specifying the date and origin of each entry;
(b) the quantity in kilograms or litres, as
the case may be, of oils and other materials
imported or otherwise obtained as raw material for
processing, specifying the type, the density at
fifteen degrees celsius (15°C), the date and the
importing vessel for each importation;
(c) the quantity of each type of oil and gas
produced, specifying the relative density at fifteen
degrees celsius (15°C) of each type of oil or gas;
(d) the quantity of oil and gas in kilograms
or litres, as the case may be, consumed by the
authorised tax warehouse keeper in heating or
fuelling the machinery for the process of
production;
(e) the quantity of each type of oil and gas
in kilograms or litres, as the case may be, sold,
exported or otherwise delivered from the
authorised tax warehouse;
(f) the quantity of each type of oil and gas
produced which is kept in stock at the authorised
tax warehouse at the end of each period;
(g) the balance of crude or other oils and
materials, obtained as raw materials, still in stock
at the authorised tax warehouse at the end of each
period; and
(h) the amount of excise duty paid during
the period being reported upon.
(2) The authorised tax warehouse keeper shall
submit to the Commissioner a statement as prescribed
in regulation 12 of Part A containing the following
details
(a) the quantity in kilograms or litres, as
the case may be, of all oils and gases introduced
into the installation or warehouse, specifying each
type of product, the date of warehousing and the
importing vessel or other source;
(b) the quantity of each type of oil and gas
released from the installation or warehouse as
sales, exports, bunkering fuel and as other
deliveries, specifying which type of transaction;
(c) the balance of quantities for each type
of oil or gas kept in stock at the installation or
warehouse at the end of the year; and
(d) the amount of excise duty paid during
the year being reported upon.";
(ii)
regulation 16 thereof shall be substituted by the
following new regulation
16. Excise duty due on petroleum oils or gases
released for consumption from the authorised tax
warehouse shall be remitted to the Commissioner as
prescribed in regulation 16(2) of Part A.";
(iii) regulation 16A thereof shall be amended as
follows
(ia) sub-regulation (4) thereof shall
be
substituted by the following new sub-regulation
"(4) (a) Any registered merchant shall
purchase the excise stamps by not later than
five (5) working days from the date of entry in
Malta of the products mentioned in Part B of
the Fourth Schedule on which there is an
obligation to affix the excise stamp, except
where the excise stamps are to be affixed by an
authorised tax warehouse keeper.
(b) The excise stamp shall be
affixed to the container by not later than
five (5) working days from when it is
purchased, except in the case where the
excise stamp is to be affixed by an
authorised tax warehouse keeper.";
(ib) sub-regulation (5) thereof shall
be
substituted by the following new sub-regulation
"(5) (a) Any registered merchant who
fails to purchase the excise stamps within five
(5) working days from the date of entry in
Malta of the products mentioned in Part B of
the Fourth Schedule on which there is an
obligation to affix the excise stamp, except
where the excise stamp is to be affixed by an
authorised tax warehouse keeper, shall upon
conviction be liable to a fine (multa) of one
hundred and fifty euro (€150) and the court
shall order the forfeiture of those excise stamps
which should have been affixed on the products
mentioned in Part B of the Fourth Schedule. In
addition, the forfeiture of the products
mentioned in Part B of the Fourth Schedule
shall also take place according to law, as
applicable.
(b) A registered merchant who
fails to affix the 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 two hundred
euro (€200) and the court shall also order
the forfeiture of the excise stamps that
should have been affixed on the products
mentioned in Part B of the Fourth
Schedule. In addition to this, the
forfeiture of the products mentioned in
Part B of the Fourth Schedule shall also
take place according to the law, as
applicable.
(c) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner may, if the offender
admits,
refrain
from
instituting
proceedings in accordance with this Act
and impose a penalty equivalent to one
hundred euro (€100). In addition to this,
the forfeiture of the products mentioned
in Part B of the Fourth Schedule shall
also take place according to law, as
applicable.
(d) In the case of an irregularity
mentioned in paragraph (b), the
Commissioner, while forfeiting the excise
stamps not affixed within the given time
according to law, as applicable, may, if
the offender admits, refrain from
instituting proceedings in accordance
with this Act and impose a penalty
equivalent to one hundred and fifty euro
(€150). In addition to this, the forfeiture
of the products mentioned in Part B of the
Fourth Schedule shall also take place
according to law, as applicable.";
(ic) sub-regulation (6) thereof shall
be
substituted by the following new sub-regulation
"(6) (a) Every
authorised
tax
warehouse keeper who takes out of the
authorised tax warehouse products mentioned
in Part B of the Fourth Schedule on which an
excise stamp was not affixed according to law,
shall on conviction be liable to a fine (multa) of
three hundred euro (€300) 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 products
mentioned in Part B of the Fourth Schedule
shall also be carried out according to law, as
applicable.
(b) In the case of an irregularity
mentioned in paragraph (a), the
Commissioner, while forfeiting the excise
stamps that had to be affixed to the
products mentioned in Part B of the
Fourth Schedule 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 products
mentioned in Part B of the Fourth
Schedule themselves shall also be carried
out according to law, as applicable.";
(id) sub-regulation (7) thereof shall
be
substituted by the following new sub-regulation
"(7) (a) Any person who, with the
exception of authorised persons, has in his
possession excise stamps shall be liable on
conviction to a fine (multa) of three hundred
euro (€300) and the court shall order the
forfeiture of those excise stamps according to
law, as applicable. In addition, the forfeiture of
the products mentioned in Part B of the Fourth
Schedule themselves shall also be carried out
according to law, as applicable.
(b) In the case of an irregularity
mentioned in paragraph (a) the
Commissioner while forfeiting 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
products mentioned in Part B of the
Fourth Schedule themselves shall also be
carried out according to law, as
applicable.";
(ie) sub-regulation (8) thereof shall
be
substituted by the following new sub-regulation
"(8) (a) Any quantity of the products
mentioned in Part B of the Fourth Schedule
which is found in the possession of any person
in contravention of the provisions of these
regulations, shall be withheld and the
provisions of article 27 et seq of the Act shall
apply and this without prejudice to any other
penalty provided for under the Act or any other
law.
(b) Any excise stamp which was
not affixed within the prescribed time
according to law and which is found in
the possession of any person in
contravention of the provisions of these
regulations, shall be withheld and the
provisions of article 27 et seq of the Act
shall apply and this without prejudice to
any other penalty provided for under the
the Act or any other law.";
(iv) immediately after regulation 16A thereof, as
amended, there shall be added the following new
regulation
16B. The provisions of articles 13A and 13B of Part
products mentioned
A of this Schedule shall apply, mutatis mutandis,
in Part B of the
Fourth Schedule.
limitedly to the products mentioned in Part B of the
Fourth Schedule.";
(e)
Part E thereof shall be amended as follows
(i) in regulation 3 thereof the definition
"accounting period" shall be substituted by the following
new definition
" "accounting period" means the calendar
month at the end of which a reconciliation and
stocktaking exercise is performed with the purpose of
accounting for the worts and beers produced during
such period;";
(ii) sub-regulation (3) of regulation 11 thereof shall
be substituted by the following new sub-regulation
"(3) Monthly (1) payments of excise duty on
beer shall be entered on the prescribed duty form and
shall be submitted to the Commissioner as prescribed
in regulation 16(2) of Part A on the quantity of beer
released for consumption during such period.";
(iii) regulation 13 thereof shall be substituted by the
following new regulation
13. The brewer shall submit to the Commissioner a
monthly (1) statement for each accounting period as
specified in the following paragraphs
(i) accounting periods shall be of one (1)
calendar month each, as specified by the
Commission in accordance with regulation 16(1)
of Part A;
(ii) not later than fifteen (15) days
following the end of each accounting period, the
brewer shall together with the statement prepare
and submit a report in respect of the production of
all worts and the production, stocks kept at the
brewery and sales of beer for the accounting period
being reported upon, specifying the information
mentioned in Schedule II.";
(iv) Schedule II thereof shall be amended as
follows
–
the words "six monthly statement" shall
be substituted by the words "monthly (1) statements";
–
in item 11 thereof the words "during the
six monthly accounting period" shall be substituted
by the words "in relation to the monthly (1)
statement";
–
item 13 thereof shall be deleted;
(f)
Part F thereof shall be amended as follows
(i)
regulation 10 of Part F thereof shall be
amended as follows
(ia) sub-paragraph (ii) of sub-regulation (1)
thereof shall be substituted by the following new sub-
paragraph
"(ii) an audited statement for each
accounting period in respect of all production,
stocks kept at the authorised tax warehouse and
sales of wines made during the accounting
period, and specifying such information as may
be prescribed in relation to wines;";
(ib) sub-regulation (2) thereof shall
be
substituted by the following new sub-regulation
"(2) The term of an accounting period
and the submission of the statement shall be as
prescribed in regulation 12 of Part A.";
(ic) sub-regulation
(3)
thereof
shall
be
deleted;
(ii)
regulation 12 thereof shall be amended as
follows
(ia) sub-regulation (4) thereof shall
be
substituted by the following new sub-regulation
"(4) The provisions of paragraphs (a)
and (b) of regulation 13(6) of Part A of the
Sixth Schedule shall apply mutatis mutandis.";
(ib) sub-regulation (5) thereof shall
be
substituted by the following new sub-regulation
"(5) The provisions of paragraphs (a) to
(d) of regulation 13(7) of Part A of the Sixth
Schedule shall apply mutatis mutandis.";
(ic) sub-regulation (6) thereof shall
be
substituted by the following new sub-regulation
"(6) The provisions of paragraphs (a)
and (b) of regulation 13(8) of Part A of the
Sixth Schedule shall apply mutatis mutandis.";
(id) sub-regulation (7) thereof shall
be
substituted by the following new sub-regulation
"(7) The provisions of paragraphs (a)
and (b) of regulation 13(9) of Part A of the
Sixth Schedule shall apply mutatis mutandis.";
(iii) regulation 13 thereof shall be substituted by the
following new regulation
13. (a) Any quantity of wine products found in
the possession of any person in contravention of
regulations 11 or 12 shall be withheld and the
provisions of article 27 et seq of the Act shall apply,
and this without prejudice to any other penalty provided
for in accordance with the Act or any other law.
(b) Any excise stamp which was not
affixed within the prescribed time according to
law, as applicable and which is found in the
possession of any person in contravention of these
regulations, shall be withheld and the provisions
of article 27 et seq of the Act shall apply and this
without prejudice to any other penalty provided
for in accordance with the Act or any other law.";
(iv) immediately after regulation 13 thereof, as
substituted, there shall be added the following new
regulation
14. The provisions of regulations 13A and 13B of
Part A of this Schedule shall apply mutatis mutandis.";
(g) immediately after Part F thereof, as amended, there
shall be added the following new Part
"PART FA
Bag-in-Box Regulations
1. The title of these regulations is the Bag-in-Box
Wine Regulations.
2. In these regulations, unless the context
otherwise requires
"Act" means the Excise Duty Act;
"Bag-in-Box unit" means a packaging format
for wine comprising a flexible inner bag contained
within a rigid outer box;
"competent authority" means the office,
entity or person designated by the Commissioner
for the administration and enforcement of excise
stamps;
"economic operator" means any person,
whether natural or legal, involved in the
production, bottling, acquisition, importation or
distribution of wine chargeable with excise duty;
"excise stamp" means the excise duty stamp
issued or approved by the Commissioner in
accordance with the provisions of the Act and any
regulations made thereunder.
3. (1) Every unit of Bag-in-Box wine intended
for retail or commercial distribution, irrespective of its
origin, shall bear a single excise stamp affixed in
accordance with the instructions issued by the
Commissioner.
(2) No notification shall be required when such
product is sold in its original Bag-in-Box format.
4. (1) An economic operator who intends to
bottle wine from a Bag-in-Box unit shall
(a) apply for an excise stamp for each
original Bag-in-Box unit; and
(b) submit such documentation as the
Commissioner may require, including but not
limited to an invoice, a declaration and evidence of
lawful acquisition.
(2) Following approval of the application referred
to in sub-regulation (1), the economic operator shall
notify the Commissioner of the intention to carry out
bottling operations.
(3) Such notification shall specify
(a) the capacity of the containers intended
for use, which shall be limited to
(i) five hundred millilitres (500ml);
or
(ii) one litre (1l); and
(b) the number of bottles which shall be
produced for each Bag-in-Box unit.
(4) The economic operator shall request the
issuance of additional excise stamps in proportion to
the declared number of bottles, in such manner and
form as may be prescribed by the Commissioner.
5. (1) Wine derived from Bag-in-Box units shall
be bottled exclusively in screw-cap sealed containers.
(2) The use of cork or any other sealing mechanism
shall be strictly prohibited.
6. (1) All container sizes for bottling wine in
accordance with these regulations shall be of
(a) five hundred millilitres (500ml); or
(b) one litre (1l).
(2) No other container sizes shall be permitted.
7. In the case of an economic operator who
acquires Bag-in-Box wine units from a local authorised
source, the following shall apply
(a) the operator shall furnish to the
Commissioner
(i) a valid invoice issued by the
supplier; and
(ii) photographic or documentary
evidence of the excise stamp affixed on the
Bag-in-Box unit, including the visible serial
number;
(b) the economic operator shall also
notify the Commissioner of
(i) the intention to bottle the said
product;
(ii) the number of bottles which shall
be produced; and
(iii) the size of the containers which
shall be utilised in accordance with
regulation 6(1).
8. (1) Additional excise stamps shall be
collected by the economic operator from such issuing
office or authority as may be designated by the
Commissioner.
(2) Excise stamps shall be endorsed and validated
prior to their affixation on bottled containers.
(3) No administrative or service fee shall be
charged for such endorsement, except for the cost of the
excise stamp itself.
9. (1) The Commissioner may delegate the
endorsement of excise stamps to an external entity or
authority, for the purposes of administrative efficiency.
(2) Endorsements carried out by such entity shall be
deemed to have the same legal validity as if issued by the
Commissioner.
10. (1) Any person who breaches or fails to
comply with the provisions of these regulations shall be
guilty of an offence as prescribed in the Act.
(2) Without prejudice to any other punishment
established in the Act, any economic operator who
bottles or places wine on the market from Bag-in-Box
units in breach of these regulations or without the
designated excise stamps, shall be liable to such
punishments, sanctions and forfeitures in accordance
with the Act or any regulations made thereunder.";
(h)
regulation 6 of Part G thereof shall be amended as
(i) sub-regulation (3) thereof shall be substituted
by the following new sub-regulation
"(3) The term of an accounting period and
submission of the return shall be as prescribed in
regulation 12 of Part A of the Sixth Schedule.";
(ii) immediately after sub-regulation (3) thereof, as
substituted, there shall be added the following new sub-
regulations
"(4) Any person who fails to submit the
statement within the prescribed period of fifteen (15)
days shall be liable to an administrative penalty of
one hundred euro (€100) per month (1) or part
thereof until the statement is submitted, which in any
case shall not be later than three (3) months
following the lapse of the said prescribed period of
fifteen (15) days.
(5) Any person who fails to observe the
provisions of this regulation shall be guilty of an
offence and shall be liable upon conviction to a fine
(multa) not exceeding twenty five thousand euro
(€25,000).
(6)
In the case of any breach referred to in
sub-regulation (5) the Commissioner may, if the
offender admits, refrain from instituting proceedings
in accordance with the Act and shall impose an
administrative penalty of two thousand euro
(€2,000). In addition to this, the submission of the
said payment shall also be required to be made
according to law, as applicable.
(7) (a) The payment of the relative duty
indicated in the statements submitted to the
Commissioner as prescribed shall be effected by not
later than fifteen (15) days from the submission of
the statement.
(b) Any person who fails to pay the
duty within the prescribed period of fifteen (15)
days from the submission of the statement,
shall be liable to an administrative penalty of
one hundred euro (€100) per month (1) or part
thereof until the payment is effected which
shall in any case not be later than three (3)
months.
(c) Any person who fails to observe the
provisions of these regulations shall be guilty
of an offence and shall be liable on conviction
to a fine (multa) in accordance with the
provisions of article 16 of the Act, as
applicable.
(d) In case of an irregularity referred to
in paragraph (c), the Commissioner may, if the
offender admits, refrain from instituting
proceedings in accordance with the Act and
impose an administrative penalty in accordance
with article 16A of the Act. In addition to this,
the submission of the said payment shall also
be required to be made according to law, as
applicable.";
(i)
regulation 6 of Part K thereof shall be amended as
(i) sub-regulation (2) thereof shall be substituted
by the following new sub-regulation
"(2) The said statement shall be given to the
Commissioner in accordance with regulation 12 of
Part A of the Sixth Schedule and shall be so compiled
to specify the information required to be furnished,
classified separately under the title of imported
electronic cigarettes, refill containers and
manufactured electronic cigarettes and refill
containers.";
(ii)
sub-regulation (3) thereof shall be deleted;
(j)
Part L thereof shall be amended as follows
(i) regulation 8 thereof shall be substituted by the
following new regulation
8. Excise duty on smokeless tobacco products
shall be payable upon release for consumption by the
authorised tax warehouse keeper as provided in
regulation 16(2) of Part A.";
(ii) sub-regulation (1) of regulation 9 thereof shall
be substituted by the following new sub-regulation;
"(1) The authorised tax warehouse keeper of
smokeless tobacco products shall submit to the
Commissioner a statement, in respect of the
production of each product, during such accounting
period as the Commissioner may prescribe in
accordance with regulation 16(1) of Part A of the
Sixth Schedule.";
(iii) immediately after regulation 10 thereof there
shall be added the following new regulation
11. The exemption of excise duty on smokeless
tobacco products acquired by a private individual for
his personal use and transported from a Member State
to Malta by the said private individual, shall only apply
to a maximum quantity of eight hundred (800) sticks of
smokeless tobacco products.".
In the Seventh Schedule to the principal Act immediately Amendment of
after the last item thereof there shall be added the following new item: the
Schedule to the
Act.
" - Smokeless tobacco products regulated by Schedule Five
In the Eight Schedule to the principal Act immediately after
the last item thereof there shall be added the following new item
" - Electronic cigarettes and refill containers as regulated
by Schedule Five I.".
PART IX
AMENDMENTS TO THE VALUE ADDED TAX ACT
(1) This Part amends the Value Added Tax Act and it shall
be read and construed as one with the Value Added Tax Act,
hereinafter in this Part referred to as the "principal Act".
(2) The provisions 66(a), 66(c)(i)(ia), 66(c)(ii), 67 and 74 shall
come into force on 1 January 2027.
Article 2 of the principal Act shall be amended as follows
(a) in the definition "notice of payment" the words
"article 30(2)" shall be substituted by the words "article 30(3)";
(b) in the definition "public authority" the words "or a
corporation constituted by an Act of Parliament;" shall be
substituted by the words ", corporation constituted by an Act of
Parliament or any other body governed by public law;";
(c) immediately after the definition "public authority"
there shall be added the following new definition
" "revenue acts" shall have the same meaning as
assigned to it in the Commissioner for Tax and Customs
Act;".
Immediately after sub-article (2) of article 9 of the principal
Act there shall be added the following new sub-article
"(3) The Minister may by regulations prescribe for
the exemption from tax on
(a) supplies made to;
(b) intra-community acquisitions made
by; and
(c) importations made by,
diplomatic or consular arrangements or a person
who qualifies for an exemption from tax in accordance
with such international arrangements as the Minister
may in accordance with such regulations prescribe
Provided that the grant of such exemption
shall be subject to such conditions and limitations as
may be established in the said regulations.".
In sub-article (4) of article 10 of the principal Act the words Amendment of
"is liable for the payment of the tax on a supply in accordance with article
principal Act.
article 20" shall be substituted by the words "makes a taxable or
exempt with credit supply taking place in Malta on which he would be
liable for the payment of the tax on the said supply in accordance with
article 20 had that supply been a taxable supply,".
Sub-article (2) of article 24 of the principal Act shall be Amendment of
article 24 of the
substituted by the following new sub-article
principal Act.
"(2) The amount of excess credit of a person
registered under article 10 for a tax period shall, to the
extent that it is not set off against any amount due by
that person to the Commissioner in accordance with
article 21(1), be a refund payable to such person by not
later than five (5) months from the expiration of the
time allowed for the furnishing of the tax return for that
tax period or from the day on which the said return has
been furnished to the Commissioner, whichever is the
later
Provided that where a person to whom a refund
is payable in terms of this sub-article has, by the date the
refund claim is due, failed to submit a tax return, or
return of income in respect of the year of assessment
1999 or any subsequent years of assessment by the date
required to be submitted in accordance with the
provisions of the Income Tax Management Act, and such
failure persists until the date such refund becomes
payable, any such refund shall not be paid to such person
and shall be withheld by the Commissioner until such
time as the said tax return or return of income is
submitted; and provided further that notwithstanding any
other provisions of this Act, no interest shall be due by
the Commissioner in respect of the period during which
the said refund was withheld on account of failure to
submit a tax return or return of income for the purposes
of the Income Tax Management Act
Provided further that notwithstanding the
foregoing provisions of this sub-article, the
Commissioner may set off any amount of excess credit of
a person, to the extent that it is not set off against any
amount due by that person to the Commissioner in
accordance with article 21(1), against any amounts due
by that person to the Commissioner in accordance with
any of the provisions of the revenue acts.".
In sub-article (1) of article 47 of the principal Act the words
"Any of the parties to an appeal or a reference to the Tribunal who feel
aggrieved by the decision of that Tribunal may, by means of an
application which shall be filed within thirty (30) days from the date of
the service of the decision appealed from, but not later than one
hundred and eighty-three (183) days from the date of the decision by
the Tribunal, or on 30th June 2024, whichever date is the later, appeal
against that decision only on the following questions of law:" shall be
substituted by the words "Any of the parties to an appeal or to a
reference to the Tribunal who feel aggrieved by the decision of that
Tribunal may, by means of an application which shall be filed within
thirty (30) days from the date of the decision of the Tribunal, appeal
against that decision only on the following questions of law:".
Article 49 of the principal Act shall be substituted by the
following new article
49. (1) Where any person registered or required to
"Inclusion of
tax in the price
be registered in accordance with this Act, indicates the
for supplies.
shall be supplied to any other person, such price or
consideration shall be deemed to be inclusive of any tax
chargeable under this Act.
(2) Notwithstanding the provisions of sub-article (1),
where
(a) the tax chargeable in accordance with
this Act cannot be determined at the time the price or
consideration payable for a supply is indicated; or
(b) the supply is made to another person who
identifies himself for the purpose of that supply by
means of a valid value added tax identification
number,
and it is specifically and unequivocally indicated that
such price or consideration payable excludes the tax
chargeable under this Act, such price or consideration
shall be deemed to be exclusive of any tax chargeable
under this Act.".
Article 58 of the principal Act shall be substituted by the Substitution of
article 58 of the
following new article
principal Act.
58. (1) All tax, interest and administrative
penalties due under this Act may be sued for and
recovered, as the case may require in the competent
court of civil jurisdiction.
(2) Subject to the provisions of sub-article (3), the
Commissioner may institute an action for the payment
of all tax, interest and administrative penalties at any
time within six (6) years from the date on which such
tax, interest or administrative penalty becomes payable.
(3) The period referred to in sub-article (2) shall
be interrupted by a demand note served through
registered post or by publication of a notice in the
Gazette and in one (1) or more daily newspapers by the
Commissioner stating that a demand note has been
made or by publication of a notice on the web portal
designated by the Commissioner for that purpose
stating that a demand note has been made, or by any
judicial act filed by the Commissioner before the
expiration of such period requesting the payment of the
amount claimed.".
Article 70 of the principal Act shall be substituted by the Substitution of
article 70 of the
following new article
principal Act.
The Minister may by regulations prescribe for the
diplomatic and refund by the Commissioner of the tax paid on supplies,
arrangements, intra-community acquisiti ons or importations by
diplomatic or consular arrangements or by a person who
organisations. qualifies for an exemption from tax in accordance with
such international arrangements as the Minister may in
accordance with such regulations prescribe
Provided that the grant of such refund shall be
subject to such conditions and limitations as may be
established in the said regulations.".
64. Article 73 of the principal Act shall be substituted by the Substitution of
article 73 of the
following new article
principal Act.
(1) Every notice to be served on a person by
the Commissioner under this Act shall be signed by the
Commissioner or by any person authorised by the
Commissioner and every such notice shall be valid if
the signature is printed, stamped or written thereon
Provided that any notice given electronically
by the Commissioner shall not be required to be signed
and shall be valid if it is
(a) made available to that person through
the web portal designated by the Commissioner
for that purpose; or
(b) given to that person from any
electronic
address
belonging
to
the
Commissioner, including generic electronic
addresses, or belonging to a person authorised by
the Commissioner.
(2) Any notice required to be given to a person
under this Act by the Commissioner or any other person
authorised by the Commissioner may be served either
personally, electronically or by being sent by post. A
notice shall be deemed served where
(a) it is sent by registered post, as
evidenced by proof that the notice was properly
addressed and shall be deemed to have been
served in the case of an address in Malta not later
than the third day subsequent to the day when it
was posted, and in the case of an address outside
Malta on the day subsequent to that on which the
notice would have been received in the ordinary
course by registered post;
(b) it is sent electronically to an electronic
address provided by that person, or on behalf of
that person, to the Commissioner through the web
portal designated by the Commissioner for that
purpose; or
(c) it is made available to that person
through the web portal designated by the
Commissioner for that purpose
Provided that where such notice is not
served on a person because that person could not
be found or for other reasons attributable to that
person and the Commissioner publishes a notice in
the Gazette and in one (1) or more daily
newspapers, or the Commissioner makes a notice
publicly available on the web portal designated by
the Commissioner for such purpose, stating that a
notice has been made and inviting that person to
collect it as and where directed by the
Commissioner, then such notice shall also be
deemed to have been duly notified on the date of
such publication on that web portal
Provided further that a cheque or draft
posted by the Commissioner shall be deemed to be
a payment for the amount thereof made on the date
indicated on that cheque or draft.
(3) For the purposes of sub-article (2), a notice
sent by registered post shall be deemed to have been
properly addressed if it has been addressed to any
known business or private address of a person.
(4) The Commissioner may publish on the web
portal designated by the Commissioner for this purpose
the closing times of the offices of the Commissioner and
any period established in, or under this Act for the
furnishing, delivery or service of a return, notice or other
document to the Commissioner or for any payment to the
Commissioner and such period shall be deemed to expire
at the closing time of the last day of such period
Provided that this sub-article shall not apply to
any return, notice, other document or payment made
electronically through the means designated for such
purpose by the Commissioner.
(5) When the date on which any return, notice or
other document is to be furnished, delivered or served or
deemed to be served or on which a payment is to be
made in terms of any provision of this Act falls, were it
not for the provisions of this sub-article, on a Saturday or
a Sunday, or on a national day or a public holiday as
established in the National Holidays and other Public
Holidays Act, such date shall be deemed to fall on the
first working day, other than a Saturday, following the
said Saturday, Sunday, national day or public holiday.".
65. Sub-article (1) of article 83 of the principal Act shall be Amendment of
article 83 of the
principal Act.
66. The Second Schedule to the principal Act shall be amended as
(a) sub-item (2) of item 12A thereof shall be substituted
by the following new sub-item
"(2) Where a taxable person facilitates, through the
use of an electronic interface, such as a marketplace,
platform, portal or similar means, the supply of goods
within the Community by a taxable person not established
within the Community to a taxable person, or a non-taxable
legal person, whose intra-Community acquisitions of
goods are not subject to VAT pursuant to Article 3(1) of
Council Directive 2006/112/EC, or for any other non-
taxable person, the taxable person who facilitates the
supply shall be deemed to have received and supplied those
goods himself.";
(b) item 15 thereof shall be substituted by the following
new item
15. (1) The use of goods forming part of an
goods forming part
economic activity for the private use of a taxable person
or of his staff or, more generally, for purposes other
than those of his economic activity, where the VAT on
such goods or the component parts thereof was wholly
or partly deductible, shall be treated as a supply of
services for consideration made by that taxable person
acting as such
Provided that this sub-item shall not apply
where such supply of services would be subject to an
exemption in accordance with Part One of the Fifth
Schedule.
(2) The supply of services carried out free of
charge, other than a service which would be subject to an
exemption in accordance with Part One of the Fifth
Schedule, by a taxable person for his private use or for
that of his staff, or more generally, for purposes other
than those of his economic activity, where any goods or
services on which VAT was wholly or partly deducted are
used or applied to provide such free of charge services,
shall be treated as a supply of services for consideration
made by that taxable person acting as such
Provided that this shall not apply to services
carried out free of charge made to non-profit making
organisations as defined in item 5 of Part Five of the
Fifth Schedule.";
(c)
item 17A thereof shall be amended as follows
(i)
sub-item (2) thereof shall be amended as
follows
(ia) paragraph (a) thereof shall be substituted
by the following new paragraph
"(a) goods dispatched or transported by
a taxable person, or by a third party on his
behalf, on or before 30 June 2028, to another
Member State with a view to those goods being
supplied there, at a later stage and subsequent
to their arrival, to another taxable person who is
entitled to take ownership of those goods in
accordance with an existing agreement between
both taxable persons;";
(ib) in paragraph (d) thereof the words "in
article 30(3)" shall be substituted by the words "in
article 30(2)";
(ii) immediately after sub-item (7) thereof there
shall be added the following new sub-item
"(8) This item shall cease to apply on 30 June
2029.".
67. The Third Schedule to the principal Act shall be amended as Amendment of
the Third
Schedule to the
principal Act.
(a) sub-item (5) of item 4 of Part One thereof shall be
substituted by the following new sub-item
"(5) (a) Paragraph (a) of sub-item (3) shall not
apply where the following conditions are met
(i) the supplier is established or, in the
absence of an establishment, has his permanent
address or usually resides only in Malta; and
(ii) the goods are dispatched or transported
from Malta to another Member State; and
(iii) the total value, exclusive of VAT, of the
supplies referred to in sub-paragraph (ii), together
with the total value of the supplies of services
referred to in sub-paragraph (ii) of paragraph (a) of
sub-item (2) of item 10 of Part Two does not exceed
ten thousand euro (€10,000) in the current calendar
year and did not exceed that amount in the course of
the preceding calendar year.
(b) Where during a calendar year, the threshold
referred to in sub-paragraph (iii) of paragraph (a) is
exceeded, paragraph (a) of sub-item (3) shall apply with
effect from that time.
(c) Notwithstanding the other provisions of this
sub-item, the Commissioner shall grant to taxable persons
carrying out supplies eligible under paragraph (a) the right
to opt for the place of supply to be determined in
accordance with paragraph (a) of sub-item (3), which shall
in any event cover two (2) calendar years
Provided that a valid election for this purpose
shall be made by means of a notice in writing to the
Commissioner on a form acceptable to the Commissioner
specifying the date from which it shall apply, which in any
case may not be earlier than thirty (30) days from the date
on which it is accepted by the Commissioner
Provided further that the option referred to in
this paragraph shall be deemed to have been exercised by
taxable persons registered in the special scheme provided
for in Section 3 of Part Seven of the Fourteenth Schedule.";
(b)
item 10 of Part Two thereof shall be amended as
follows
(i) sub-item (2) thereof shall be substituted by the
following new sub-item
"(2) (a) Sub-item (1) shall not apply where
the following conditions are met
(i) the supplier is established or, in the
absence of an establishment, has his permanent
address or usually resides only in Malta;
(ii)
services are supplied to non-taxable
persons who are established, or have their
permanent address or usually reside in any
Member State other than Malta; and
(iii) the total value, exclusive of VAT, of
the supplies referred to in sub-paragraph (ii),
together with the total value of the supplies
referred to in sub-paragraph (ii) of paragraph
(a) of sub-item (5) of item 4 of Part One does
not exceed ten thousand euro (€10,000) in the
current calendar year and did not exceed that
amount in the course of the preceding calendar
year.
(b) Where during a calendar year the
threshold referred to in sub-paragraph (iii) of
paragraph (a) is exceeded, sub-item (1) shall apply
with effect from that time.
(c) Notwithstanding the other provisions of
this sub-item, the Commissioner shall grant to
taxable persons carrying out supplies eligible under
paragraph (a) the right to opt for the place of supply
to be determined in accordance with sub-item (1),
which shall in any event cover two (2) calendar
years
Provided that a valid election for this
purpose shall be made by means of a notice in
writing to the Commissioner on a form acceptable to
the Commissioner specifying the date from which it
shall apply, not being earlier than thirty (30) days
from the date on which it is accepted by the
Commissioner
Provided further that the option referred
to in this paragraph shall be deemed to have been
exercised by taxable persons registered in the special
scheme provided for in Section 3 of Part Seven of the
Fourteenth Schedule.";
(ii)
sub-items (3) and (4) thereof shall be deleted.
68. Item 4 of the Fourth Schedule to the principal Act shall be Amendment of
the Fourth
Schedule to the
principal Act.
substituted by the following new item
4. The tax on an intra-Community supply which
"Date when tax on
is exempt in accordance with item 3 of Part One of the
supplies becomes
Fifth Schedule becomes chargeable on the earlier of the
following two (2) dates
(a) the date on which a tax invoice is
issued for such supply; and
(b) the fifteenth (15) day of the month
following the date when the chargeable event
takes place in accordance with sub-item (1) or (4)
of item 1, if no invoice has been issued by such
date.".
69. The Fifth Schedule to the principal Act shall be amended as
(a)
Part One thereof shall be amended as follows
(i) in paragraph (b) of sub-item (1) of item 3
thereof the words "in terms of article 30(3) or the
recapitulative statement submitted by him does not set out
the correct information concerning the supply as required
in terms of the said article 30(3)" shall be substituted by the
words "in terms of article 30(2) or the recapitulative
statement submitted by him does not indicate the correct
information concerning the supply as required in terms of
the said article 30(2)";
(ii) immediately after item 16 thereof there shall be
added the following new item
17. The supply of goods for the benefit of disaster
"Supplies for the
benefit of disaster
victims, and services related to such goods supplied or
acquired including rental services, subject to the
conditions and limitations established under Article
101a of Council Directive 2006/112/EC.";
(b) sub-item (2) of item 6 of Part Two thereof shall be
substituted by the following new sub-item
"(2) The supply of goods and services by a non-
profit making organisation in connection with events,
organised exclusively for their own benefit, designed to
raise funds which shall be used for the provision of goods
and services which are exempt in terms of sub-items (2) or
(4) of item 11 or of sub-items (1) or (2) of item 12 of this
Part
Provided that the event is recognised by the
Commissioner as being exclusively designed for the said
purpose and provided that this exemption is not likely to
cause distortion of competition.";
(c) immediately after item 8 of Part Three thereof there
shall be added the following new item
9. The intra-Community acquisitions of goods for
the benefit of disaster victims subject to the conditions
and limitations established under Article 101a of
Council Directive 2006/112/EC.";
(d) sub-item (1) of item 2 of Part Five thereof shall be
amended as follows
(i) paragraph (b) thereof shall be substituted by the
following new paragraph
"(b) tea and coffee supplied in liquid form;";
(ii) paragraph (d) thereof shall be substituted by the
following new paragraph
"(d) milkshake, yogurt, chocolate and similar
products, including those supplied in liquid form, but
excluding those sealed in a package by the
manufacturer and supplied in that original sealed
package.";
(e) item 5 thereof shall be substituted by the following
5. A "non-profit making organisation" means
(a)
a public authority, or
(b)
a body of persons
(i) whose objects are clearly
defined in its statute;
(ii) whose objects expressly exclude
profit making;
(iii) whose statute provides that no
part of its income or property is available
directly or indirectly to any member,
proprietor or shareholder;
(iv) which
is
managed
and
administered in accordance with the
provisions of its statute and for the purpose
of its stated objects; and
(v) which is registered as a
voluntary organisation with the office of the
Commissioner for Voluntary Organisations,
or as may be approved by the
Commissioner.".
70. Immediately after item 8 of the Seventh Schedule to the
principal Act there shall be added the following new item
8A. (1) In respect of the supply of goods or
services by a person to a related person, the taxable
amount shall be the open market value of such goods or
services where
(a) the consideration is lower than the
open market value and the recipient of the supply
does not have a full right of deduction in
accordance with the provisions of the Tenth
Schedule;
(b) the consideration is lower than the
open market value and the supplier does not have
a full right of deduction in accordance with the
provisions of the Tenth Schedule and the supply is
subject to an exemption in accordance with Part
Two of the Fifth Schedule; or
(c) the consideration is higher than the
open market value and the supplier does not have
a full right of deduction in accordance with the
provisions of the Tenth Schedule.
(2) For the purpose of this item a person shall be
deemed to be a "related person" to another person where
(a) that person is part of the same family
as the other person;
(b) that person is an employee, including
a holder of office, of the other person, and
including any family member of that employee;
(c) those persons are cohabitants;
(d) those persons, directly or indirectly,
jointly own and, or hold the same asset;
(e) any persons who owns and, or holds,
directly or indirectly, as to more than fifty per
cent (50%) of their ordinary share capital or
equivalent interests, voting rights or equivalent
rights, or rights to profits available for
distribution, by the related persons referred to in
paragraphs (a) to (c);
(f) one (1) person owns and, or holds,
directly or indirectly, more than fifty per cent
(50%) of the ordinary share capital or equivalent
interests, voting rights or equivalent rights, or
rights to profits available for distribution, of the
other person;
(g) those persons who own and, or hold,
directly or indirectly, as to more than fifty per
cent (50%) of their ordinary share capital or
equivalent interests, voting rights or equivalent
rights, or rights to profits available for
distribution, by the same person or persons; or
(h) those persons collectively own and, or
hold, directly or indirectly, as to more than fifty
per cent (50%) of the ordinary share capital or
equivalent interests, voting rights or equivalent
rights, or rights to profits available for
distribution, of another person
Provided that where a person is
deemed to be a "related person" to another person
in accordance with this sub-item, any immediate
family members of such person shall also be
deemed to be a related person to the other person.
(3) For the purposes of this item, "open market
value" shall mean the full amount that, in order to obtain
the goods or services in question at that time, a customer
at the same marketing stage at which the supply of goods
or services takes place, would have to pay, under
conditions of fair competition, to a supplier at arm’s
length within the territory of the Member State in which
the supply is subject to tax
Provided that where no comparable supply of
goods or services can be ascertained, "open market
value" shall mean the following
(a) in respect of goods, an amount that is
not less than the purchase price of the goods or of
similar goods or, in the absence of a purchase
supply; and
(b) in respect of services, an amount that
is not less than the full cost to the taxable person
of providing the service.".
71. In item 3 of the Table in the Eighth Schedule to the principal
Act the word "Confectionery" shall be substituted by the words
"Consumable goods and other similar goods".
72. In paragraph (k) of item 3 of the Twelfth Schedule to the
principal Act the words "Parts One and Three" shall be substituted by
the words "Part One".
73. The Thirteenth Schedule to the principal Act shall be
amended as follows
(a) item 11 thereof shall be substituted by the following
new item
11. (1) The Commissioner may, by means of a
obligation to issue a
notice in writing, exempt any person and may by means
of a notice published on the Government Gazette and
the web portal designated by the Commissioner for that
purpose exempt any class of persons from any
obligation imposed by this Schedule, and such
exemption may be given for such time and with such
limitations and subject to such conditions as may be
specified in the said notice.
(2) The Commissioner may at any time by means of
a notice published on the Government Gazette and the
web portal designated by the Commissioner for that
purpose revoke any exemption given by virtue of this
item.";
(b)
item 13 thereof shall be amended as follows
(i) paragraph (b) of sub-item (1) thereof shall be
substituted by the following new paragraph
"(b) be of a type specifically approved by the
Commissioner by means of a notice published on the
Government Gazette and the web portal designated
by the Commissioner for this purpose or approved
for the purposes of and in accordance with this Act.";
(ii)
sub-item (2) thereof shall be amended as
follows
(ia) in paragraph (a) thereof the word
"printing" shall be substituted by the word
"issuance";
(ib) in paragraph (b) thereof the word "printed"
shall be substituted by the words "printed or
electronic".
The Fourteenth Schedule to the principal Act shall be Amendment of
the Fourteenth
amended as follows
Schedule to the
principal Act.
(a) sub-item (2) of item 2 of Part One thereof shall be
substituted by the following new sub-item
"(2) The provisions of sub-item (1) shall not apply
(a) supplies of services covered by the
special scheme as established in Section 2 of Part
Seven of this Schedule, where those supplies are
carried out by a taxable person who is permitted to
use such special scheme in accordance with item 2 of
the said Section;
(b) supplies covered by the special scheme
established in Section 3 of Part Seven of this
Schedule, where those supplies are carried out by a
taxable person who is permitted to use that special
scheme in accordance with item 2 of the said Section;
(c) supplies of services in respect of which
the tax is payable by the customer pursuant to Article
196 of Council Directive 2006/112/EC; and
(d) supplies or transfers of goods referred to
in item 4 of the Fourth Schedule.";
(b)
Part Seven thereof shall be amended as follows
(i)
section 2 thereof shall be amended as follows
(ia) item 2 thereof shall be substituted by the
following new item
"2.
The Commissioner shall permit that
any taxable person not established within the
Community supplying services to a non-taxable
person to use this special scheme. Such special
scheme applies to all those services supplied
within the Community.";
(ib) paragraph (c) of sub-item (1) of item 4
thereof shall be substituted by the following new
paragraph
"(c) electronic address, including, where
available, websites;";
(ic) item 11 thereof shall be substituted by the
following new item
11. The taxable person who is not established
"Deduction of input
within the Community making use of this special
scheme may not, in respect of services covered by this
special scheme, deduct VAT incurred in the Member
States of consumption pursuant to Article 168 of
Council Directive 2006/112/EC. Notwithstanding point
(1) of article 1 of Directive 86/560/EEC, the taxable
person in question shall be refunded in accordance with
such Directive. Article 2(2) and Article 4(2) of
Directive 86/560/EEC shall not apply to refunds
relating to goods or services used for the purposes of
the supplies of services covered by this special scheme.
If the taxable person making use of this special scheme
is required to be registered in a Member State for
activities not covered by this special scheme, they shall
deduct VAT incurred in such Member State, in respect
of their taxable activities which are covered by this
special scheme, in the VAT return to be submitted
pursuant to Article 250 of Council Directive 2006/112/
EC.";
(ii)
section 3 thereof shall be amended as follows
(ia) item 2 thereof shall be substituted by the
following new item
2. (1) The Commissioner shall permit the
the special scheme.
following taxable persons to use this special scheme
(a) a taxable person carrying out intra-
Community distance sales of goods;
(b) a taxable person facilitating the supply
of goods in terms of sub-item (2) of item 12A of
the Second Schedule where the dispatch or
transport of the goods supplied begins and ends in
the same Member State; and
(c) a taxable person not established in the
Member State of consumption supplying services
to a non-taxable person.
This special scheme applies to all those goods or
services supplied in the Community by the taxable
person concerned.
(2) For the purposes of paragraph (a) of sub-item
(1), until 30 June 2028, the supply of gas through a
natural gas system situated within the territory of the
Community or any network connected to such a system,
the supply of electricity or the supply of heat or cooling
energy through heating or cooling networks, in
accordance with the conditions established in Article 39
of Council Directive 2006/112/EC, where those
supplies are made to a taxable person, or a non-taxable
legal person, whose intra-Community acquisitions of
goods are not subject to VAT in accordance with Article
3(1) of Council Directive 2006/112/EC, or to any other
non-taxable person by a taxable person not established
in the Member State in which the goods are subject to
VAT, is deemed to be an intra-Community distance sale
of goods.";
(ib) item 10 thereof shall be substituted by the
following new item
10. (1) The taxable person making use of this
"Deduction of input
special scheme may not, in respect of their taxable
activities covered by this special scheme, deduct VAT
incurred in the Member States of consumption pursuant
t o A r t i c l e 1 6 8 o f D i r e c t i v e 2 0 0 6 / 11 2 / E C .
Notwithstanding point (1) of Article 1 of Directive 86/
560/EEC and point (1) of Article 2, Article 3, and point
(e) of Article 8(1) of Directive 2008/9/EC, the taxable
person in question shall be refunded in accordance with
those Directives. Article 2(2) and Article 4(2) of
Directive 86/560/EEC shall not apply to refunds
relating to goods or services used for the purposes of
the supplies of goods covered by this special scheme.
(2) If the taxable person making use of this special
scheme is required to be registered in a Member State
for activities not covered by this special scheme, he
shall deduct VAT incurred in such Member State in
respect of his taxable activities which are covered by
this special scheme in the VAT return that shall be
submitted pursuant to Article 250 of Council Directive
2006/112/EC.";
(iii) section 4 thereof shall be amended as follows
(ia) immediately after sub-item (2) of item 3
thereof there shall be added the following new sub-
item
"(3) Sub-item (1) shall not apply to
taxable persons subject to the special scheme
for small enterprises provided for in Title XII,
Chapter 1, Section 2 of Council Directive 2006/
112/EC.";
(ib) item 6 thereof shall be amended as
follows
-
paragraph (c) of sub-item (1)
thereof shall be substituted by the following
new paragraph
"(c) electronic address, including,
where available, websites;";
-
paragraph (c) of sub-item (3)
thereof shall be substituted by the following
new paragraph
"(c) electronic address, including,
where available, websites;";
(ic) item 13 thereof shall be substituted by the
following new item
13. (1) The taxable person making use of this
"Deduction of input
special scheme may not, in respect of their taxable
activities covered by this special scheme, deduct VAT
incurred in the Member States of consumption in
accordance with Article 168 of Directive 2006/112/EC.
Notwithstanding point (1) of Article 1 of Directive 86/
560/EEC and point (1) of Article 2, Article 3, and point
(e) of Article 8(1) of Directive 2008/9/EC, the taxable
person in question shall be refunded in accordance with
those Directives. Article 2(2) and Article 4(2) of
Directive 86/560/EEC shall not apply to refunds
relating to goods or services used for the purposes of
the supplies of goods covered by this special scheme.
(2) If the taxable person making use of this special
scheme is required to be registered in a Member State
for activities not covered by this special scheme, he
shall deduct VAT incurred in such Member State in
respect of his taxable activities which are covered by
this special scheme in the VAT return that shall be
submitted in accordance with Article 250 of Council
Directive 2006/112/EC.".
PART X
AMENDMENTS TO THE ECO-CONTRIBUTION ACT
This Part amends the Eco-Contribution Act and it shall be Amendments to
read and construed as one with the Eco-Contribution Act, hereinafter the
Contribution
in this Part referred to as the "principal Act"
Act.
Provided that the provisions of articles 78 and 79 shall come
into force on 1 st July 2026.
Immediately after sub-article (2) of article 3 of the principal Amendment of
article 3 of the
Act there shall be added the following new sub-article
principal Act.
"(3) The Minister may, by regulations made in accordance
with this article, amend, substitute or repeal the Second
Schedule.".
Article 9 of the principal Act shall be substituted by the Substitution of
article 9 of the
principal Act.
following new article
9. (1) The registration and reporting procedure
that shall be adhered to by all producers liable to the
payment of an eco-contribution is established in the
Third Schedule.
(2) The Minister may, by regulations made in
accordance with this article, amend, substitute or repeal
the Third Schedule.".
The fourth column of the Second Schedule to the principal
Act shall be substituted by the following new column
"One euro and fifty cents (€1.50) per night per
person who is eighteen (18) years of age or older at the
start of the visit but in any case subject to a maximum
of twenty-two euro and fifty cents (€22.50) per person
per visit. The term "visit" shall mean an uninterrupted
stay in one (1) or more premises in Malta requiring to
be licensed as established in the second column hereof
Provided that where a visit includes stays of
up to fifteen (15) days in premises, whether in Malta or
otherwise, which do not require to be licensed in
accordance with the Malta Travel and Tourism Services
Act (hereinafter referred to as "interruption"), this
notwithstanding, the stay shall still be considered as
constituting one (1) visit for the purpose of calculating
the eco-contribution due sohowever that no eco-
contribution shall be charged in respect of the days of
the interruption.".
Paragraph (iii) of sub-item (2) of item 2 of the Third Schedule
to the principal Act shall be substituted by the following new
"(iii) on the total number of nights per person of
accommodation, during the relative period that exceeded fifteen
(15) nights; and".
PART XI
AMENDMENTS TO SUBSIDIARY LEGISLATION
This Part amends various subsidiary legislation and it shall be
read and construed as one with the subsidiary legislation that it
In regulation 55 of the Customs Regulations the words Amendment to
"specified in the Third Schedule hereto." shall be substituted by the the
Regulations.
words: "specified in the Third Schedule hereto:" and immediately S.L. 37.05.
thereafter there shall be added the following new proviso
"Provided that the temporary storage of Ħal Far
Groupage Complex in respect of goods in terms of Regulation
(EU) No 952/2013 of the European Parliament and of the
Council of 9 October 2013 laying down the Union Customs
Code (recast) shall be exempt from payment of rates chargeable
in accordance with this Regulation.".
The Excise Duty (Goods Imported by Persons Travelling from Amendments to
the Excise Duty
Third Countries) Regulations shall be amended as follows
(Goods
Imported by
Persons
(a) in regulation 2 thereof immediately after the Travelling from
definition "private pleasure-flying" there shall be added the Third
Regulations.
following new definition
" "smokeless tobacco product" means a tobacco
product not involving a combustion process, including
heated tobacco products as defined in regulation 2 of
the Manufacture, Presentation and Sale of Tobacco and
Related Products, herbal products not involving a
combustion process but excluding chewing tobacco,
nasal tobacco or tobacco for oral use;";
(b) immediately after regulation 6A thereof there shall
be added the following new regulations
6B. The importation of up to a maximum of twenty
millilitres (20ml) of electronic cigarettes and refill
cigarettes and refill
containers shall be exempt from excise duty, including
when the importation is made by seacraft and aircraft
crew.
6C. The importation of up to a maximum of two
hundred (200) sticks of smokeless tobacco products shall
be exempt from excise duty, including when the
importation is made by seacraft crew
Provided that in the case of the importation of
the said smokeless tobacco products made by aircraft
crew, only forty (40) sticks of smokeless tobacco
products shall be exempt from excise duty.";
(c)
regulation 11 thereof shall be substituted by the
following new regulation
11. Goods imported by a traveller shall be exempt
than ten euro (€10). from excise duties when the amount of excise duty to be
levied is equal to, or less than ten euro (€10)
Provided that the goods referred to in this
regulation which are subject to the specified levels shall
be excluded from the provisions of this regulation.".
(1) The Designation of the Competent Authority Order
shall be amended as follows
(a) regulation 2 thereof shall be substituted by the
following new regulation
2. (1) The Malta Tourism Authority, as
established in accordance with the Malta Travel and
Tourism Services Act, hereinafter referred to as the
"Authority", is hereby designated as the competent
authority in accordance with the Eco-Contribution Act,
hereinafter referred to as the "Act", for the purposes of
the eco-contribution payable on services described in
the Second Schedule of the Act.
(2) In the exercise of such functions
(a) the Authority may delegate to any
public officer any of the rights, duties, powers and
other functions vested in it, conferred to it or
imposed upon it by the Act or in virtue of any
regulations made thereunder; and
(b) the Authority may delegate to any such
person such of the rights, duties, powers and other
functions vested in it, conferred to it or imposed
upon it by the Act or in virtue of any regulations
made thereunder, as the Minister responsible for
tourism may direct in writing
Provided that the Authority may not
delegate those rights, duties, powers and other
functions vested in it if such person is not
considered by the Authority as a fit and proper
person to exercise those rights, duties, powers and
other functions.";
(b)
immediately after regulation 2 thereof, as amended,
there shall be added the following new regulation
3. (1) The Commissioner for Tax and Customs,
as established in accordance with the Commissioner for
Tax and Customs Act, hereinafter referred to as the
"Commissioner", is hereby designated as the competent
authority in accordance with the Act, for the purposes
of the eco-contribution payable on products described
in the First Schedule of the Act.
(2) In the exercise of such functions
(a) the Commissioner may delegate to
any public officer any of the rights, duties, powers
and other functions vested in him, conferred to
him or imposed upon him by the Act or in virtue
of any regulations made thereunder; and
(b) the Commissioner may delegate to any
such person such of the rights, duties, powers and
other functions vested in him, conferred to him or
imposed upon him by the Act or in virtue of any
regulations made thereunder as the Minister
responsible for waste management may direct in
writing
Provided that the Commissioner may
not delegate those rights, duties, powers and other
functions vested in him if such person is not
considered by the Commissioner as a fit and
proper person to exercise those rights, duties,
powers and other functions.".
(2) The provisions of sub-article (1) shall come into force on 1st
Passed by the House of Representatives at Sitting No. 440 of the
3rd March, 2026.
ANĠLU FARRUGIA
Speaker
ELEANOR SCERRI
Clerk of the House of Representatives
€8.01