The eco-tax is to be phased out at from next year because it is distorting the market, it was announced today.

Finance Minister Edward Scicluna said distortion was being caused because the tax was not charged on those who imported from Sicily or through the internet.

The eco-tax will be lifted gradually, starting from electronic and white goods as long as the importers join a waste packaging scheme, by June. The eco-tax on this segment will be lifted in September.

The minister said work would continue on the merger of the IR and VAT Departments. 

Exemptions on the issuing of receipts will be accompanied by audits and investigative work would be stepped up, including investigations of fiscal cash registers to deter tampering. 

A Border Revenue Security Agency will replace the Revenue Security Corps of the AFM. It will form part of the AFM and will ensure that taxes are paid by all those whose imports are not for personal use,

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