Category: Archive – 2013

A practical guide to eco-innovation
addressed to small and medium-sized enterprises (SMEs) is now published. The
booklet overviews emerging business opportunities eco-innovation has to offer
to companies that reconsider business models, develop new products,
technologies or services, or improve production processes. The guide summarises
key business issues, questions and lessons learnt for SMEs as well as presents
selected eco-innovation good practices.

This guide is divided into six
sections. The opening chapter introduces the concept of eco-innovation. The
focus then shifts to the key issues, challenges and opportunities of
eco-innovation for SMEs. The guide includes sections on:

business model and value
proposition

process eco-innovation

product eco-innovation

getting eco-innovations on the
market

online resources for
eco-innovation.

This guide is addressed above all to
companies that have not yet embarked on any eco-innovation activity, but are
interested in exploring the potential offered by eco-innovation for their
business or new business idea. The publication will be equally useful for
business support organisations providing-or planning to provide-eco-innovation
support and coaching services to SMEs.

The guide can be downloaded at: http://www.eco-innovation.eu/images/stories/Reports/sme_guide.pdf

GRTU was delighted to learn of the
news of the further antitrust action taken by the European Commission against
MasterCard's inter-bank fees. This is excellent news for consumers
and retailers across Europe who have suffered long enough from the
unjustifiably high fees and the anticompetitive practices of the card schemes.

The new investigation will cover
issues not yet addressed in the Commission's decision of 2007, which was upheld
on appeal by the European General Court in May 2012. The court confirmed that
MasterCard's cross-border multilateral interchange fees (MIFs) were in breach
of European competition law. However, since MasterCard has taken the case to
further appeal on points of law, many national competition authorities still
have not taken action.

The new investigation will look into
restrictive rules on cross-border acquiring and the honour all cards rule
(HACR): these have long been of great concern to the retail sector. The HACR
compels merchants to accept some cards which carry very high fee levels. Card
scheme rules on cross-border acquiring prevent the commerce sector from
creating efficiencies through the use of centralised acquiring and so keep
costs unnecessarily high.

Europe deserves an electronic payment
system which is open, competitive and offers a cheap basic way to transfer
money within and across national borders. This is the way forward for payments
in Europe.

The European Commission initiated an
interim review investigation of the anti-dumping measures applicable to imports
of bicycles originating in the People's Republic of China. The request contains sufficient
initial evidence that  the anti-dumping
measures on imports of bicycles originating in the People's Republic of China
are being circumvented by means of transhipment via Indonesia, Malaysia, Sri
Lanka and Tunisia and by means of assembly operations of certain bicycle parts
from the People's Republic of China.

This temporary review on anti-dumping
underlines the following:

The
R546 General Disclosure Document reveals all the details on the anti-dumping
interim review as well as the investigation on China allegedly subsidizing
Chinese bike exporters.

The R563 document reports on DG Trade's circumvention investigation into bike
companies based in various Asian countries evading the 48.5% dumping duty
through transhipments of bikes made in China in their export to the European
Union.

DG Trade's R546 General Disclosure
Document says on China subsidizing Chinese bike exporters that: "The
Chinese aluminium market is distorted due to significant intervention of the
State." DG Trade comes to the same conclusion for the country's steel
market. On this and numerous other investigation findings DG trade concludes
that Market Economy Treatment (MET) should be rejected for the Chinese groups
that requested such treatment.

On the existing 48.5% anti-dumping
levied on bikes imported from China, the R546 General Disclosure Document says:
"The continuation of measures on imports of bicycles originating in the
PRC would clearly be in the interest of the Union industry and the Union
suppliers of bicycle parts. It will allow the Union industry to grow and
improve its situation caused by the dumped imports.

Furthermore, the importers would not
be substantially affected since fairly priced bicycles would still be available
on the market from the PRC and other third counties. Also, due to the extensive
use of the existing exemption scheme by the Union industry, it was concluded
that the existing measures had no significant negative impact on the
users/consumers. In contrast, if measures were repealed, Union bicycles
producers will likely close production, thus also threatening the existence of
Union bicycle parts producers."

Intended to help domestic
manufacturers, antidumping duties cause considerable damage to EU importers. To
improve the system, it is essential to consider traders' needs properly.

Proposals are a moderate package that
will please no economic operator entirely. But, with some amendments, it could
well pave the way for a viable compromise to be agreed with the Parliament and
the Member States.

Importers need predictability. They
need to calculate price, quality and quantity in due time. Orders are binding
and paid for a long time in advance. A shipment clause covering average
transport times would mitigate the loss of planning certainty incurred by EU
trade defence.

The new guidelines on the Union
Interest Test (to ensure the respect of overall economic interests in the EU –
importers, manufacturers, consumers) and three other procedural issues are an
important contribution to more legal certainty. However, they still need to
better reflect the reality of an importer's business. The consultation launched
today is a good opportunity to get this right.

Finally, optimised rules for reviews
and refunds, an upgraded helpdesk for SMEs and facilitated cooperation for
importers are helpful additional proposals contained in the package. On the
negative side, the Commission intends to water down the lesser duty rule and to
initiate trade defence investigations ex
officio.

Change in tax rate cuts – Employers to upgrade payroll
system – Following the approval of the Budget
this week all employers need to update their payroll system to immediately
start to reflect the reduction of tax rate from 35% to 32%. Employees earning between €20,000 and
€60,000 a year should see a 3% per cent increase in their earnings with their
next paycheque.

This increase however is owed since
the beginning of the year because the new lower rate has been backdated to
January 1, meaning eligible workers are now owed a four-month tax rebate by the
Inland Revenue Department.

Employers should shortly be receiving
a circular with payroll update instructions from the Department of Inland
Revenue.

Once payrolls are updated, the Final
Settlement System mechanism would automatically look at how much income tax a
person had already paid this year, calculate how much they should have paid,
and refund the difference.

The changes mean that a person
earning €3,000 monthly before tax will likely find that their monthly €660
income tax deduction suddenly dip to €496 next month, to make up for having
overpaid tax since January. The figure would however then level at €619 for
subsequent months, meaning savings of €41 a month.

Vehicle Registration &
Licensing Measures

Transport Malta notifies that in line
with the new budgetary measures, the following changes will be applicable.
These are in addition to the measures that were already implemented between
January and March 2013 related to reductions in Registration Tax for EURO 5
Light Passenger Vehicles, all Motorcycles, and Goods Carrying Vehicles with a
mass not exceeding 3,500kg.

Measure 1: Registration Tax
on EURO 4 M1 Vehicles

The rates of registration tax for
Category M1 passenger vehicles with up to eight passenger seats besides the
driver's seat, with EURO 4 emission levels, will have their registration tax
increased. (table)

Measure 2:
Minimum Registration Tax for Used M1 Vehicles

The Minimum Registration Tax for Used
Category M1 passenger vehicles with up to eight passenger seats besides the
driver's seat, imported from outside the EU, and having five years from the
year of manufacture, will decrease in accordance with the table below. This
applies only for the lowest two CO2 tax bands (i.e. 0 up to 130g/km) as
follows:

These new minimum tax values will be
applicable as from 29th November 2012, and therefore refunds will be issued to
anyone that would have registered such a vehicle between this date and the 8th
April 2013.

Measure 3:
Conversions to Autogas

Category M1 passenger vehicles with
up to eight passenger seats besides the driver's seat that are either
converted, or run with Autogas will have their CO2 emission levels reduced by
10%. This will:

a) Reduce the registration tax for
vehicles registered as of 1st January 2013; and

b) Reduce the annual circulation
licence fee as of 1st January 2013 for vehicles licensed after January 2009,
and converted to Autogas after 1st January 2013.

Where such a vehicle is converted to
run on Autogas and no emissions are available for a converted vehicle by the
vehicle's manufacturer or by an approved accredited technical service, the CO2
emission value as quoted for an unconverted vehicle shall be automatically
reduced by 10%. Transport Malta will then use this value to calculate the
applicable annual circulation licence fee or registration tax as applicable.

Measure 4:
Registration Values for Authorised Licensed Dealers and Importers

Licensed vehicle dealers and
importers will have the facility to establish a fixed registration value for
their vehicle (for registration tax calculation purposes) at registration
stage, and the payment of the registration tax will be deferred until the
vehicle is actually licensed. This enables the licensed vehicle dealers and
importers to reduce the risk of fluctuations in registration values from the
time the vehicle is brought into Malta, and the time it is actually sold and
licensed. Individuals already have until the end of the month following when
the value would have been established.

This measure applies for all vehicle
values established as of the 29th November 2012.

Measure 5:
Classic, Vintage or Veteran Vehicles including Motorcycles

a) The single plate scheme that was
available to individuals who have more than one vehicle qualifying as classic,
vintage or veteran vehicles, enabling to pay once annual circulation fee for
all the fleet, will be abolished as of the individual vehicles' next licence
renewal date. Therefore as of the 29th November 2012, and all Classic, Vintage
or Veteran vehicles will not pay an annual circulation licence fee and will
only pay an administrative fee of €8 per vehicle on the renewal of the annual
circulation licence fee.

b) As of 29th November 2012, a
vehicle will classify as a Classic, Vintage or Veteran Vehicle at the age of 30
years from year of manufacture instead of 35. Such vehicles will continue to be
certified by a Vintage Vehicle Classification Committee appointed by Transport
Malta in accordance with the law.

c) Category M1 passenger vehicles
with up to eight passenger seats besides the driver's seat with an age of 50
years or over from the year of manufacture, and certified authentic by the
Vintage Vehicle Classification Committee appointed by Transport Malta, will not
pay any Registration Tax as of the 29th November 2012.

d) Motorcycles with an age of 50
years or over from the year of manufacture and certified authentic by the
Vintage Vehicle Classification Committee will not pay any Registration Tax as
of the 29th November 2012.

e) Goods Carrying Vehicles with an
age of 50 years or over from the year of manufacture and certified authentic by
the Vintage Vehicle Classification Committee will not pay any Registration Tax
as of the 29th November 2012.

Measure 6:
Annual Circulation Licence Fees (M1 Vehicles over 250g/km)

The Annual Circulation Licence Fee
for Category M1 passenger vehicles with up to eight passenger seats besides the
driver's seat that were registered on or after the 1st January 2009, and
falling within the highest CO2 category (ie. over 250g/km), and aged 11 years
or over, have been reduced as per the table below.

These new minimum tax values will be
applicable as from 29th November 2012, and therefore refunds will be issued to
anyone that would have paid such fee between this date and the 8th April 2013.

Measure 7:
Refunds on previously introduced measures

With regard to the measures that were
already implemented between January and March 2013 related to reductions in
Registration Tax for EURO 5, Passenger (M1) Vehicles, all Motorcycles, and
Goods Carrying Vehicles with a mass not exceeding 3,500kg, Transport Malta will
be issuing refunds in the coming weeks as stipulated below:

a) M1 (Passenger cars) with EURO 5 or
6 emission levels and registered between the 11th December 2012 and the 13th
January 2013;

b) N1 (Goods Carrying Vehicles) with
EURO 5 or 6 emission levels and registered between the 11th December 2012 and
the 1st March 2013;

c) Motorcycles registered between the
11th December 2012 and the 1st March 2013.

Incentive Schemes

Hotels: Malta Enterprise will allow licensed hotels to
benefit from an uncapped 15% tax credit calculated by reference to the capital
investment made.

Boutique Hotels: Tax deductions on investments related
to the purchase and development of Boutique Hotels in Valletta, Mdina and the Three Cities.
These will also benefit from reduced MEPA and MTA fees.

MicroInvest: Extended for another 2 years and applies
not to businesses that do not employ more than 30 persons (while before the
maximum was 9 employees)

B Start: Existing businesses will be able to claim a
deduction from their income tax liability up to €30,000 where there invest in
seed capital in new approved companies

Maternity leave

Maternity leave entitlement was
extended by two weeks in 2012 to 16 weeks and will increase by a further two
weeks in 2013.

Energy Incentives

New incentives for the installation of
PV panels that are not supported through other funding. The incentives take the
form of attractive feed-in tariffs as follows:

High Energy User Scheme which applied
to factories that consumed more than 2GwH per year, extended to industries and
hotels in Gozo

Changes in excise

Increase in excise duty of 6% on cigarettes and 8% on
tobacco

Increase in petrol and diesel by 2c per litre

Increase in excise duty on cement by €5 per 1000kg

The external session of the SMEST
workshop was attended by some 30 participants coming from various SME sectors
and from trade associations.  Following
an introduction, Ing. Francis P. Farrugia gave a presentation on the topic of
Engaging SMEs in Standardization.

The work carried out by the
Standardization Directorate was explained and discussed with the participating
members throughout the session. The discussion dealt with the list of published
standards and also with those standards that are still under preparation. A
list of Mirror Technical Committees where Maltese SMEs are contributing to the
development of European and international standard was also discussed
throughout the external session. This workshop was also an opportunity for the
Standardization Directorate to present its various services such as an SME
helpdesk, certification schemes and various training courses.

An active discussion took place where
difficulties being faced by SMEs were highlighted. These problems may include
the lack of expertise in this area, the time to spare for standardization
matters as many SMEs may be already overloaded with activities, the cost of
participation which involves not only travel costs but also business
opportunity loss. The discussion followed on how SMEs can become more involved
in the process of standardization and on the benefits that SMEs can gain
through this process.

On this matter, suggestions from
participating SMEs included more interaction between the relevant bodies that
assisted SMEs. During the intensive discussion, it was suggested that such
entities should organize road shows to invite SMEs where information activities
can be held to engage the said SMEs.

From an Industry point of view GRTU's
representative Carmen Borg explained GRTU's role in supporting SMEs and
encouraging them to take a more active part in standardization. Focusing in
particular on the developments of National Standards on vocational competences.

From a Cen-Cenelec perspective, Ms
Ingrid Soetaert gave a demonstration of the SMEST website and explained the
various tools for SMEs to make the best use of standardization. Ms Soetaert
made various live demonstrations how SMEs can search for published and draft
standards as well as gather experience from other European SMEs.  Both websites; www.smest.eu and
www.cencenelec.eu were mentioned so as to encourage SMEs to browse through
these sites and get the information and material that they need.

The meeting was concluded with two
case studies. One case study was presented by Mr. Ronnie Galea, a Maltese
delegate for CEN TC 404 on Pest Management Services. The second case study was
then presented by Ms. Magda Magri Naudi, another Maltese delegate for CEN TC
409 on Beauty Salon Services. Both shared their experiences of participating in
Technical Committees and mentioned the various benefits of standards which
include; the ability to participate in the promotion of the standard, the
thorough understanding of the standard and it's design, the enhancement of a
corporate image as an industry leader, the advantage of having information
coming straight from the source, as well as beneficial contacts with other
specialized professionals within the industry.

The Public holidays
that are still exempt for 2013 are:

Wednesday 1st May

Friday 7th June

Saturday 29th June

Sunday 8th September

Saturday 21st September

Workshop 1:
Innovation in Business – Speaker: Ing David Dingli, Resource
Productivity Consulting Services – Topic: Innovation is the development
of new values through solutions that meet new requirements; it differs from
invention [1] in that innovation refers to the use of a better and, as a
result, novel idea or method,

whereas invention refers more directly to the
creation of the idea or method itself. Innovation also differs from improvement
[2] in that innovation refers to the notion of doing something different rather
than doing the same thing better. Join this seminar to learn how this can be
applied to your business operations!

Date: 17th April

Time: 3.00 PM TO 4.00 PM

Workshop 2:
Family Business- Developing Governance for successful Transitions

Date: 17th April

Time: 4.00 PM TO 5.00 PM

Speaker: Mr. Mario Duca, Family
Business Consultant and Chairman of the Malta Association of Family Enterprises

Topic: While many family owned
businesses have a long-term objective of "passing the business on to the
next generation", in reality, only about 30% of family owned businesses
successfully transfer to the second generation. Furthermore, only about 15%
make it to the third generation, and only about 5% make it to the fourth
generation. Why are so many family businesses unsuccessful at making the
transition to the next generation? Possible underlying reasons will be
discussed at this workshop.

Workshop 3:
Procurement Opportunities in the World Bank Date: 18th April

Time: 3.00 PM TO 4.00 PM

Speaker: Mr. Gilles Garcia,
Enterprise Outreach Services, World Bank

Topic: Mr Garcia from the Paris
office of the World Bank will be visiting Malta to generate further awareness
about the business opportunities available to SMEs who wish to offer their
products and services to the World Bank agencies. Mr Garcia will be also available
for individual meetings [by appointment please].

Session will be held at Radisson Blue
Hotel, St Julian which are free of charge, however attendance must be
registered on:

A measure announced in the year's
Budget (adopted this week) states that the registration tax rates for EURO 4
vehicles has been increased. This with immediate effect.

As part of a review of possible
transition measures, Transport Malta is collecting information from licensed
importers and dealers to take stock of the amount of used vehicles that have
been brought into Malta or ordered by the 8th April 2013 with a EURO 4 engine.
At this stage, all that is required is the total stock of vehicles in Malta or
on order. Therefore no detailed lists are required.

You are
required to send us the total stock by email on by Monday the
15th April 2013.