An estimated €43 million is lost in sales in Malta every year due to counterfeiting, according to a new EU study.
This translates into over 530 jobs directly lost in sectors ranging from cosmetics and clothing to recorded music and jewellery, while the wine and spirits sector is the biggest loser compared to the EU average.
A series of studies carried out by the European Union Intellectual Property Office (EUIPO), published yesterday, estimates that across the EU over €48 billion – or 7.4 per cent of all sales – is lost every year in nine sectors due to the presence of fake goods in the marketplace.
The sectors analysed were cosmetics and personal care, clothing, footwear and accessories, sports goods, toys and games, jewellery and watches, handbags, recorded music, spirits and wine, and pharmaceuticals.
Every year, an additional €35 billion is also lost due to the indirect effects of counterfeiting and piracy in these sectors, as manufacturers buy fewer goods and services from suppliers, causing knock-on effects in other areas.
We hope that the results of our study series will help consumers make more informed choices – all the more important at this time of year
The lost sales translate into close to 500,000 jobs directly lost or not created across these sectors in the EU, as legitimate manufacturers and in some cases distributors of corresponding products employ fewer people than they would have done in the absence of counterfeiting and piracy.
When the knock-on effect of counterfeits on other sectors is taken into account, an additional 290,000 jobs are lost elsewhere in the EU economy.
The studies, carried out between March 2015 and September 2016, also tracked the effect of fakes on public finances.
In total, the yearly loss of government revenue that arises from counterfeiting and piracy in these nine sectors was estimated to be €14.3 billion, in terms of the lost income tax, VAT and excise duties.
EUIPO executive director António Campinos said: “We hope that the results of our study series will help consumers make more informed choices. This is all the more important at this time of the year, when consumers and citizens are doing their Christmas shopping and choosing gifts for their dear ones.
“The overall picture from our study series is very clear – counterfeiting and piracy have a negative effect on the EU economy and on job creation.”
According to official figures, customs officials in Malta intercepted 459 cases of smuggling of contraband goods between January and September of this year.
Of these cases, 254 were products intended for the local market that are subject to customs duty, 189 were prohibited products, also intended for the local market, while 16 cases were in transit.