Smoothing of Monetary Amounts Regulations, 2007

L.N. 369 of 2007

EURO ADOPTION ACT

(CAP. 485)

Smoothing of Monetary Amounts Regulations, 2007

IN EXERCISE of the powers conferred by article 3 of the Euro

Adoption Act, the Prime Minister and Minister of Finance has made

the following regulations:-

The title of these regulations is the Smoothing of Monetary

Amounts Regulations, 2007.

The objective of these regulations is to regulate the

conversion of values and monetary amounts of goods and services

offered to a consumer to ensure fair practices in euro pricing, thereby

facilitating the smooth changeover of the currency unit from the

Maltese lira to the euro.

In these regulations, unless the context otherwise requires:-

“the Act” means the Euro Adoption Act;

“the Authority” means the Authority designated under

regulation 4 of these regulations and to the extent of any

authority given includes any officer or employee of such

Authority;

“consumer” means any person viewing, requesting or using

the provision of a good or service, not for re-sale, at a price or

for an amount which will be representative of payment, or which

the person will be required to pay, for such provision;

“conversion rate” means the irrevocably fixed conversion

rate adopted for the Maltese lira as provided for in paragraph

(c) of Article 1 of Council Regulation (EC) No. 2169 of 2005;

“Euro Observatory” and”“Observatory” mean the unit set

up by the”Euro Adoption (Dual Display and Euro Pricing)

Regulations, 2007 and to the extent of any authority given,

includes any officer or employee of the Euro Observatory;

“monetary amount” means the amount showing the

monetary value of any goods or services being offered for sale

or purchase or being accounted for;

“price” means the purchase price;

“purchase price” means the final retail selling or unit price,

including Value Added Tax and any other taxes or charges;

“smoothing” means the process of changing an awkward

the conversion of a price from Maltese Lira to euro using the

conversion rate.

When smoothing is allowed.

(1) Without prejudice to the provisions of the Dual Display Smoothing

and Euro Pricing Regulations, 2007, the smoothing of monetary

amounts is only permitted when such smoothing results in a monetary

amount in euro which is less than the equivalent monetary amount

in Maltese lira prior to conversion.

(2) Notwithstanding the provisions of sub-regulation (1)

in the case of monetary amounts forming part of a continuum for

the purpose of establishing threshold values, the conversion of such

amounts into euro may, provided this is necessary, be smoothened

to ensure continuity in the threshold values of neighbouring brackets

to distinctly delimit the bracket in a threshold.

(3) Where exceptional circumstances motivated by

technical constraints so dictate, and after an application is made to

the Euro Observatory, a concession may be granted by the Euro

Observatory allowing smoothing to take place in a manner other

than as provided in sub-regulation (1), under such terms and

conditions as the Euro Observatory may determine.

Administrative offences and penalties.

(1) Any person who contravenes or fails to comply with Procedures for

non-compliance.

any provision of these regulations or with any condition of any

concession made under these regulations shall be guilty of an

administrative offence against these regulations and shall be liable

to an administrative penalty of seven hundred and fifty liri (Lm750)

and an administrative penalty of seventy five liri (Lm75) for each

subsequent day during which the said contravention persists.

(2) Where the Euro Observatory finds that any person is

not complying with any provision of these regulations the procedures

for non-compliance outlined in the Euro Adoption (Dual Display

and Euro Pricing) Regulations, 2007shall apply.