Author: SME Chamber

The Malta Chamber of SMEs has today undertaken another step towards embracing competition in the market for cards and electronic payments providers by partnering up with Point of Sale (POS) and payment solutions provider Trust Payments.  The partnership aims to increase competition on the local market, expand the range of payment options being offered and ultimately lead to reduced costs for shopkeepers and merchants to accept card payments.

The drive towards online payments, reducing the use of cash and purchasing as contactless and even at a distance as possible has never been so strong. Covid has made this a basic need and consumer expectation. Some businesses have already shifted and are continuing to shift and strengthening their online presence and online and electronic payment facilities.

Cashless payments present in fact many advantages, yet businesses report an increase in cost on the charges related to card transactions in view of increasing volumes. A study conducted in collaboration with MasterCard just last year in fact found that 33% of merchants pay between 1.5% and 2% while 31% pay over 2% on each transaction. The same study also found that 29% of local merchants still do not accept card payment of which 73% of respondents that do not accept card payments, identified the cost associated with POS machines as a major reason for not accepting card payments. Malta remains one of the countries with the highest use of cash.

The increase in electronic transactions has therefore also resulted in a bigger hidden cost for businesses and consumers, which cost mitigation is a priority, now more than ever in times of economic struggle, to be tackled.

The Malta Chamber of SMEs has in the past years called for more service providers offering electronic payment services to enter the local market with the aim of increasing competition and as a result offering more cost-effective options that would encourage more businesses to offer such facilities.

The President of the Malta Chamber of SMEs Mr. Paul Abela, stated that it is high time for such value for money service in online and electronic payments to be made available on the Maltese market. It has become a priority of national interest to move towards a cashless society as much as possible and encouraging businesses in taking up such initiatives.

Trust Payments Malta CEO Mr. Steven Grech said that “We are delighted to partner with the Malta Chamber of SMEs who represent over 7,000 merchants and who are the leading voice of independent private businesses. We believe our partnership will benefit the Maltese business community as well as consumers at large.”

 

Further information:  

About Trust Payments Group

Trust Payments is a global unified payments group for global pay-in, pay-out and customer journey technologies. Their mission is to help businesses to optimise their sales and customer experience through facilitating speedy and seamless payments. Our single sign-on technology platform can process payments with over 50 global acquiring banks, including their own EU-licenced institution, acquiring.com.

Their community benefits from our 20+ years of payments experience and unrivalled customer focus. Their trusted and robust technology solutions deliver 1.6 bn transactions annually for 7,000 active clients across eCommerce, mobile and Point of Sale (POS) and in 14 like-for-like settlement currencies. They also operate in the US with money transmission services and gaming vendor licences in key regulated markets. Visit us at www.trustpayments.com and www.acquiring.com.

This year, Black Friday is different, adapting to challenges due to Covid-19. Throughout the last few weeks, especially this week, businesses offered several offers and included additional convenience for consumers, extended Black Friday to days or weeks, extended hours,  online offers and this meant safer shopping for consumers.

This morning customers visited shops while both businesses and customers observed all Covid-19 regulations.

Earlier this week, the Malta Chamber of SMEs launched a Guide to local Black Friday Offers with over 200 businesses participating and over 400 outlets across Malta and Gozo.

The SME Chamber’s initiative this year is in line with our national priorities and in fact apart from highlighting which stores are carrying the Black Friday discounts, their locality and opening hours, this year the SME Chamber is also highlighting which stores are carrying out offers online and also providing delivery service.

It is very positive to note that an increasing number of businesses participating in the initiative but more than this that businesses have overcome what used to be a national disadvantage and are now able to provide a full service of buying online and delivering.

The SME Chamber emphasis that by supporting local we are supporting our own jobs and families.

MALTA CHAMBER OF SMES LAUNCHES A SPECIAL BLACK FRIDAY, THAT IS SENSITIVE TO THE DELICATE CIRCUMSTANCES THE COUNTRY IS GOING THROUGH 

SME CHAMBER APPEALS FOR CONSUMERS TO SUPPORT LOCAL BUSINESS FIRST AND FOREMOST

The Malta Chamber of SMEs has launched its initiative linked to Black Friday, this year highlighting additional convenience for consumers who can visit the stores but also wishing to buy online and have the items delivered.

Black Friday is a very important day for businesses and consumers alike, and this year, despite all the challenges, will certainly be a good moment for business when compared to the rest of the year. From the feedback received so far both businesses and consumers are very looking forward to make the most of these few days during which special offers will be available.

The SME Chamber’s initiative this year is in line with our national priorities and in fact apart from highlighting which stores are carrying the Black Friday discounts, their locality and opening hours, this year the SME Chamber is also highlighting which stores are carrying out offers online and also providing delivery service.

It is very positive to note that an increasing number of businesses participating in the initiative but more than this that businesses have overcome what used to be a national disadvantage and are now able to provide a full service of buying online and delivering.

Following an interview held with Prof Charmaine Gauci last week where Black Friday was discussed, the Superintendent of Public Health, outlined that the health measures on shops have proven to work and that one should always ensure that these measures are followed at all times. The SME Chamber appeals to businesses and consumers to continue cooperating and carrying their responsibilities as well as they have done so far.

The SME Chamber’s Guide to local Black Friday Offers covering over 200 outlets gives consumers full visibility in order to be able to plan their shopping ahead and benefit from this period to the full.

It has never been clearer how much local consumers need to support local businesses to help each other and come out of the crises. The SME Chamber emphasis that by supporting local we are supporting our own jobs and families.

 

Click Here to Download The Guide To Local Black Friday Offers.

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 1^st 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. 

What are the advantages of a Tax Warehouse?

• It is only an area where the excisable goods are kept, the area can be simply marked with tape on the floor so other segregation such as partitioning is not necessary. It can simply be a section in a garage or warehouse.
• Excise payment would not be required to release the goods, they can be taken to the tax warehouse and payment would be due 30 days after being sold and having left the warehouse.
• There is no need to affix the excise stamp immediately but up to 5 days following the sale once the sale is done.
• In case of an accident in the Tax Warehouse and the goods cannot be sold due to damage, spillage, etc… no excise tax would need to be paid.
• Customs would not have access to the warehouse not their presence be required to access it.
• Security requirements will ensure that the business is covered from theft.

 

What are your obligations to keep a Tax Warehouse?

• Keep record of stocks going in and out of the Tax Warehouse and update customs on a monthly basis.
• The Tax warehouse is to be kept secure by securing all entrances (including windows), CCTV (not accessible to customs), only accessible by people holding a good conduct. This is all to secure the goods from theft.
• The bank guarantee that applies is according to the amount of stock the warehouse can take at any given time, this can be further reduced if all security is put in place and it can also be replaced by a private insurance that guarantees that in case of theft and goods going missing the relevant excise would still be paid to the government.

A webinar entitled ‘Digital Payment – Addressing Business Concerns’, in collaboration with Bank of Valletta.

On the 5th of November the Malta Chamber of SMEs organized a webinar entitled ‘Digital Payment – Addressing Business Concerns’, in collaboration with Bank of Valletta.

The idea behind this webinar was for members to be able to raise the main issues and concerns, following the recently introduced charges for corporate accounts, on which the SME Chamber was receiving numerous complaints. This mainly concerned charges on coin deposits, use of cheques and transfers.

Mr. Paul Abela, mentioned that during the past months a number of members have approached the SME Chamber to voice their concerns following the introduction of such charges. Mr. Abela mentioned that the SME Chamber has already held meeting with BoV in order to possibly find a solution for specific issues, in particular those where their main business activity depended on coins, such as those operating vending machines.

The Webinar also saw the participation of Mr. Kenneth Farrugia who is the Chief Business Development Officer at BoV who in particular mentioned that customers are more and more opting to use digital payments as opposed to traditional means.
During the webinar, members were offered alternatives available for BoV clients which would drastically reduce the use of cheques in particular when it comes to pay salaries and to pay other suppliers.

A detailed overview was given by Ms. Tonia Naudi who is the Head Multi- Channel & Payments Business Electronic Banking Services at BoV explained the different digital options available, through the use of the BoV app.

As part of a dedicated Q&A a number of members raised the main queries related to the alternative methods available and raised issues they encounter through the use of these alternative methods. Bank of Valletta took note of the main concerns raised and assured members present that the processes will be reviewed internally.

Members who were not able to join, but would like to view the recorded webinar are to get in touch with Fabian Demicoli on

The Malta Chamber of SMEs is currently gathering feedback from members on the difficulties and issues encountered. Feedback received will be sent to BoV for further review. Interested members are to send feedback to Andrew Aquilina via email to;

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