The Malta Chamber of SMEs welcomes MCESD Chairperson David Xuereb to its offices
01 February 2024
Malta Chamber of SMEs President Mr Paul Abela and Deputy President Mr Philip Fenech welcomed...
A meeting was held with the Customs Department on an issue raised by our members I relation to excise tax on Lubricating oils. Excise tax on lubricating oils was is fact introduced in 2015. The development that came into force now is the introduction of the identifier mark – the excise duty stamp (boll). This was announced in the Budget read at the end of 2019 for the year 2020 and private operators were informed in writing in July and August of 2020. It was also published in the Government Gazette in August 2020.
The period from the Budget announcement in 2019 to July 2020 was necessary to establish the design, security features and testing of the excise duty stamp and to come to an agreement with the excise duty stamp supplier with regards to the smooth running of procedures of procuring the excise duty stamps for lubricating oils.
The aim behind this initiative is to be able to curb on unfair competition that is mainly coming through Sicily and ensure that all products present on the Maltese market are abiding by the same rules.
All imports (non-EU) or entries into Malta (EU) that came in as of 1st October 2020 must follow the new procedure in the immediate and ensure compliance.
Products already available on the market (pre 1st October 2020) should also have the excise duty stamp affixed as soon as possible. Customs agreed to a transition period that does not go beyond May 2021. Following which enforcement will immediately take place and goods found without the excise duty stamp (even in cases where excise duty has been paid and the excise duty stamp also paid and available but not affixed to the product) will be confiscated and Customs will proceed with their action against the private operator as stipulated by the Excise Duty Act (Chapter 382).
The bank guarantee applies in the case of opting for a Tax Warehouse Keeper status and the amount of the guarantee would be equivalent to the amount of stock of the excisable goods that the tax warehouse can accommodate. Should excise be paid upon entry, in the case of Excise Registered Merchants, a guarantee applies in the form of payment according to the Excise Duty Act, Article 10C (3) ‘…(a) before dispatch or receipt of the excise goods, he shall guarantee the payment of excise duty, under the conditions fixed by the Commissioner;..’ .
Importers should seriously consider setting up a tax warehouse.
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