Illicit trade abuse ‘intensified since EU membership’ - Chamber of Commerce

Illicit trade has been an increasing scourge affecting wide sections of local business ever since Malta joined the European Union. According to the president of the Chamber of Commerce David Curmi, the abuse has since intensified further.

A Chamber delegation led by Curmi met with the parliamentary committee for economic and financial affairs on Monday evening. During this meeting, the Chamber delved deeply into illicit trade, explaining how it affected local business and suggesting remedies.

Of significant interest is the Chamber’s suggestion that a multi-departmental single authority should be set up, urgently.

“This authority should be responsible of fair and effective market surveillance, both in terms of fiscal and quality. The authority would proactively enforce taxes, laws and regulations on those that operate below the compliance radar and beyond the knowledge of any authority,” Curmi said.

The Chamber said collaboration between local and foreign authorities, particularly fiscal, should be enhanced. It also called for a thorough cost-benefit analysis of import related rules and procedures. “Repeal those that are superseded but enforce those that remain valid,” Curmi added.

The Chamber argued that illicit trade was a matter of national concern because it hit the country from various angles, including that of placing undue risks on consumer health and safety and compromising national security.

Illicit trade allows unfair competition between law-abiding companies and others that go about their business in total disregard of all laws including fiscal and environmental. It also “severely” reduces the appetite for investment in the affected sectors to the detriment of their competitiveness.

Moreover, illicit trade significantly impacts government revenue and distorts national trade statistics.

Throughout the discussion, the Malta Chamber emphasised that it was making its representations in full recognition of the parameters regulating the free movement of goods within the European Single Market and stood in full support of a liberalized and competitive business environment - provided this was fair and equitable.

The Chamber said effectively fighting illicit trade was in the interest and safety of consumers; it ensures a general adherence to all laws and regulations of the country including fiscal and restores fair competition between all economic operators on the island.