European SDG Summit 2021: For Climate Action & a Just Transition – Registrations Open
23 September 2021
You can now register to have access to all the 30 sessions in programme CORE...
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:
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.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).