The Malta Chamber this afternoon voiced its concern at the level of unfair competition being reported by its members in the importation and distribution sector.
“The situation arises from a lack of effective enforcement allowing certain so-called traders to go unpunished despite operating in total disregard of their regulatory responsibilities including fiscal.
“This uneven playing field, besides lower turnover and market share erosion of law-abiding companies, continues to cause:
* Loss of revenue to Government – which, if effectively enforced, could significantly ease off pressure for further tax increases at a time when Government is seeking to reduce its deficit;
* Declining investment and employment opportunities amongst law-abiding businesses;
* High risks to consumer health and safety;
* Only marginal price savings for consumers, if any.”
This was happening because the country did not effectively replace border controls - which were no longer permissible with Malta being part of the Single European Market - with an appropriate market surveillance structure.
The chamber said it consistently advocated the need for urgently setting up a multi-departmental single authority responsible for fair and effective market surveillance on the island. The authority had to be empowered with the necessary resources and executive powers to proactively enforce taxes, laws and regulations on those that operated below the compliance radar and beyond the knowledge of any authority including fiscal.
It pointed out that due to a situation of scarce and fragmented resources, its previous reports on this situation often resulted in the unaccaptable practice of bona fide traders being subjected to selective inspections.
“Experience showed that companies with long and impeccable track records of fiscal compliance bore the brunt of scrutiny and inspections because this was the most convenient approach for enforcement officers.”
It said it continued to monitor the situation and recently received an escalated number of reports of unfairly lost sales from aggrieved members in such sectors as wines and spirits, electronic goods, fast moving consumer goods, furniture and residential turn-key projects.
“The Malta Chamber stands in favour of a liberalised and competitive business environment provided this is fair and in compliance with our legal, regulatory and fiscal obligations. Given the situation, the Malta Chamber is in the process of consolidating updated feedback from the various sectors it represents and shall shortly be delivering a comprehensive presentation to the Parliamentary Committee for Economic and Financial Affairs.”