Category: Archive – 2016

GRTU has been informed that a new scheme that will part finance the setting up of a e-commerce websites by companies will be launched shortly.

GRTU’s Transport Lobby Group has been focusing its work on proposals related to the Kappara Junction Project. The Kappara flyover is a necessary national project which is planned to stretch over a 77-week period. For the duration of the project, traffic management will be effected given that this junction is a crucial one for Malta’s infrastructure and connectivity for traffic flows.

Budget 2016 announced the move of plastic bags and sacks from Eco-Tax to Excise Duty. This decision was taken as part of the phasing out of the heavily criticized Eco-Contribution and the replacement with Excise.

The Customs Department Director General Joseph Chetcuti explained that the Government considers this as a more just and enforceable tax. The mechanism is also markedly different.

The process to pay Eco-Tax was instigated by the individual once the product is sold and it was heavily abused because it was easier for an individual not to declare sale of the product. With Excise the product is not released until the duties are paid.

With Excise, the point at which the tax is paid is at point of entry into the market or at point of being released from a tax warehouse. With Eco-Tax, the tax was due at point of sale.

When it comes to how the tax is calculated, Eco Tax is calculated per unit, irrespective of the size or weight. Excise is calculated by weight and there is a maximum cap as to how much one can pay. In most cases the same amount of money is due, however the law is now clearer and covers in a fairer manner bags of different sorts.

The following is a description of how the new duty has been introduced:

1. DESCRIPTION: Bags of plastic of HS Codes 3923 21 and 3923 29, for the conveyance of goods, with a handle, loop, slot or any other feature that facilitates the use of the bag for the conveyance of goods; €1,700 per 100 kgs (€17 per kg) but not less than €1,500 per 10,000 units (€0.15c per bag) 
2. DESCRIPTION: Bags of plastic of HS Codes 3923 21 and 3923 29, whether for the conveyance of goods or not, with or without a handle, loop, slot or any other feature that facilitates the use of the bag for the conveyance of goods, having a dimension of 28cm x 38cm or less and having a thickness of 15 microns or less, inclusive of gussets and handle; €15 per 100kgs (€0.15 per kg) up to a maximum of €45 per 10,000 units (€0.0045c per bag)
3. DESCRIPTION: All other plastic sacks and bags (including cones) of HS Codes 3923 21 and 3923 29 and films, sheets or tubes of plastic of HS Headings 3917 and 3920 intended for the conversion into plastic sacks and bags; but
   • excluding bags of plastic of HS Codes 3923 21 and 3923 29 and films, sheets or tubes of plastic of HS Headings 3917 and 3920 which constitute or form an integral part of the packaging in which food stuff is sealed prior to retail or transfer ; and
   • excluding bio-degradable sacks and bags in accordance with MSA EN 13432:2000, MSA EN 14046:2003. MSA EN 14047:2003 and MSA EN 14048:2003;
   • excluding printed sacks and bags of plastic of HS Codes 3923 21 and 3923 29 purchased specifically for the collection of recycled waste by the authorised waste management schemes; €250 per 100kgs (€2.50 per kg) up to a maximum of €170 per 10,000 units (€0.017c per bag)
4. DESCRIPTION: Bags of plastic of HS Codes 3923 21 and 3923 29 and films, sheets or tubes of plastic of HS Headings 3917 and 3920 which constitute or form an integral part of the packaging in which food stuff is sealed prior to retail or transfer; €0 
5. DESCRIPTION: Bio-degradable sacks and bags in accordance with MSA EN 13432:2000, MSA EN 14046:2003. MSA EN 14047:2003 and MSA EN 14048:2003; €0
6. DESCRIPTION: Printed sacks and bags of plastic of HS Codes 3923 21 and 3923 29 purchased specifically for the collection of recycled waste by the authorised waste management schemes; €0

In addition to above, a clarification was made whereby plastic bags that outers and/or wrappers used by industry as part of the packaging process shall not pay excise duty. Customs are presently working on clear guidelines to facilitate implementation. 

GRTU will be representing its cargo hailier members during a meeting being held in the coming days to address various issues being caused by repeated delays brought about by inefficiences caused by the clearance offices at the freeport.

GRTU’s main concern is that one of the two clearance offices is being closed during peak-hours and which, according to statistics presented by Freeport officers during a meeting held recently, needs to be ectended immediately.

Another concern that must be discussed is the overnight stay (ONS) situation at present. GRTU proposes that an alternative place will need to be found with the aim that containers would be more organanised. This procedure has always worked efficiently in previous years.

Due to these issues and other that GRTU has been made aware of, GRTU will seek to improve the level of dialogue dor the benefit of its members and smoother operations.

The Mriehel Industrial Foundation is a private-public organization for public benefit. The long-term objective of the Foundation is to draw up a vision for Mriehel that ensures a development which can embrace both private and public investment in a common goal of economic and urban growth responsive to international business and investment potential whilst respecting traditional urban and environmental qualities.

In the immediate term, the Foundation will seek to manage Mriehel on a day-to-day basis addressing current and practical challenges to better support business operations. It will be a one-stop-shop for landlords and tenants within the area and will be a direct link to competent authorities and the local councils.

Entrepreneurs operating from Mrieħel industrial estate have joined forces with the government and set up a foundation tasked to embellish the area and turn it to a modern business park. The biggest 16 private operators in Mriehel have come together and elected 6 amongst them as their representatives to form part of the Foundation. The Government has elected 6 representatives from its side to contribute to the Foundation that include MEPA, Transport Malta, GRTU and B’Kara Local Council.

The foundation will receive up to €400,000 from the state, which will be complemented by an equal amount from the members, as well as any planning authority fees related to development in this industrial zone. The Industrial Zone has a multitude of priorities. These include access to commercial services, construction of roads, health and safety in the area, parking facilities, catering for floods, improvement of accessibility and traffic congestion issues and addressing the general unkept environment.

In addition, the Foundation will ensure that Mriehel will gradually change in a dezignated zone for manufacturing and international commerce.The area has great potential to compete with foreign international commercial zones.

The Foundation will act as the voice of the different stakeholders and GRTU will be representing the interest of small businesses through GRTU’s President Paul Abela who is a member of the Foundation.

GRTU will shortly be calling a meeting for small businesses in the area and will be electing a committee that it will consult on developments. 

GRTU has recently invited various wedding service providers to attend a meeting that focused on the promotion of this sector within foreign markets. The scope of this meeting was for GRTU to announce that it will be starting an initiative to promote ‘Malta as a Wedding Destination’. The reason being, that Malta is considered as an ideal destination to get married. As an island surrounded with inspiring churches, idyllic beaches and exceptional wedding spots it is a beautiful location to enjoy one’s wedding day.

The first action brought to the table was the concept of boosting weddings in Malta amongst the Irish community by participating in two of the wedding fairs organised by the renowned ‘Wedding Journal Show’ that will be held in the coming months. Although GRTU has selected these fairs as the stepping stone to build this initiative, it was also made clear that the organisation needs the assistance of the wedding professionals to determine what needs to be done to efficiently implement this action as they are the experts.

GRTU also expressed that representative from this industry should pool their resources to obtain mutual benefits and with the assistance of GRTU they will be able to prosper and continue to grow within this sector. Interested participants in this initiative have been invited to attend another meeting on Monday 9th May 2016 at 5:30pm – GRTU. Kindly register your participation by sending an email to

Contrary to the impression given by a media release issued by the Planning Authority earlier today 15th April 2016, entitled ‘SHOP SIGNAGE EXEMPT FROM REQUIRING PLANNING PERMISSION AND LICENSE’, GRTU clarifies that the new LN103/2016 implies that any such signage which is not under 0.5 square metre in size falls within the remit of the new law.

In practice this means that nearly all shop signage and any other advertising would need to undergo procedures through MEPA and be subject to respective fees emanating from this law which also include Eur1500 yearly fees per sign/advert to Transport Malta. Non-compliance may lead to fines of up to Eur5000.

Businesses in the signage sector have reported a sudden halt of sales and cancellation of orders. The retail sector is also strongly alarmed by the situation.

GRTU remains gravely concerned on the implementation and repercussions of this law. GRTU’s position remains that the law should be repealed in its entirety with immediate effect.

Following heavy protest raised by the GRTU, the Government has today approached GRTU to discuss a way forward.

GRTU is organising a general meeting for all businesses tomorrow Saturday 16th April at 16:00hrs at the MFCC, Ta’ Qali. 

Early in January 2016 the Prime Minister of Republic of Malta Joseph Muscat visited the Prime Minister of Serbia Aleksandar Vucic. Three months after there have been important meetings and signing of agreements between business entities.

The Prime Minister of Serbia, Aleksandar Vucic, said that he is grateful to Malta for the supporting  Serbia in the European integration process and

 announced that the meeting of the working group for enlargement of the European Union will be held in Belgrade in the beginning of 2017, when Malta will take over the EU presidency.

GRTU is protesting against the ‘Billboards and Advertisements Regulations, 2016’ and the clandestine move by which this was introduced.

The Legal Notice that was introduced on the 29th of March 2016 by three separate Ministries is unacceptable and entered without any form of

 consultation with GRTU as a social partner whose members will be directly and gravely hit by this hurried law.

The law that may have had scope to perhaps orderly organise the billboards that we see scattered around our roads has stretched to cover any form of advertisement. Advertisement is defined as any word, letter, model, sign, placard, board, notice, device or representation, whether illuminated or not for the purposes of advertisement, including any boarding or similar used for the display of advertisements, including a billboard.

The Regulations go on to state that no advertisement shall be displayed or be illuminated in any place that is visible from the road without the permission of the Authority. This in practice literally means that all advertisements that are visible from a road will be regarded in the same manner, irrelevant if these are done within one’s private property or on public land, and will require a Planning Authority permit at a fee and will also pay a yearly license of Eur 1,500 every year to Transport Malta.

GRTU is shocked that the law goes as far as including shop signs and other advertisements that might be affixed to the façade. This with the exception of signs not more than 0.5 square meters in area that are fitted flat against the façade or fascia and is not a projecting sign and as long as there are no more than two such advertisements per shop.

Another disturbing requirement is that any advertisement, including a shop sign, must bear the Authority’s reference number for its permission and this must be included as an integral part of the advertisement design in a permanent, clear and legible manner. This negatively impacts the design of logos and signage both future and even more so those existing and overlooks the fact that this goes against the branding rules of franchises.

GRTU is aggravated by the fact that the Legal Notice has overnight placed great strain on the sector that is now faced with a situation where it is not able to honor advertisement commitments made before the law was published. Operators were put under pressure to resubmit the paperwork of their permits with the Planning Authority by Monday 11th April after Planning Authority officials reportedly called the clients of billboards operators informing them that if the billboard is not regulated a fine of between Eur 1000 and Eur 5000 will be applied.

GRTU condemns the method in which this law came into force in total disrespect of the principles of transparency and consultation. The law has hastily attempted to address an issue that has been in existence for a lengthy amount of years in the most incorrect of manners. Moreover, the Planning Authority has been sitting on the permit applications for over two years without giving any form of feedback.

The law has not assessed the significant impact it will be having on enterprises across Malta and has induced a money making mechanism for the benefit of the Planning Authority and Transport Malta that will throw enterprises in an even more precarious situation.

GRTU publicly calls for the repeal of the law and will be meeting the relevant Ministries shortly to ensure that the law is put into force only following drastic changes.