The Customs Department this morning clarified which products will be taxed and which will not, in terms of the Budget speech by the finance minister yesterday.

The department said there is no new duty tax on batteries, but rather, the eco-contribution on batteries will be lifted on January 1. Early next year the Environment Authority will introduce a scheme on the collection and disposal of batteries in terms of an EU directive. 

There is no new tax on toiletries and cleaning products, clothes, floor and dish-washing products, detergents and disinfectants. Such products were previously subject to an eco-contribution which will now be lifted.

Toothpaste, mouthwash and denture products are similarly not being taxed.

A new duty tax will be imposed instead of the eco-contribution on personal cleaning products such as toilet waters, perfumes, and aftershave, make-up and skin products which are not medicated, hair products, soap, deodorants and and room deodorisers.

The average impact on the retail price of personal cleaning products will be an increase of 1.3 per cent including VAT.

Non-alcoholic drinks

Duty on non-alcoholic drinks is increasing by 2c per litre, but duty on water has not been touched,

The average impact on the retail price of non-alcoholic drinks will be an increase of 1.9 per cent including VAT. 

Garbage bags

Thee is no new duty tax on garbage bags The only increase is for the black non-biodegradable bags. The impact will be a price rise of 1.2 percent including VAT.

Building materials

There is no new tax on cement, but there is a new duty on imported pre-stressed beams. Local products are excluded from this charge since duty would have already been charged on cement. 

There is a new duty tax on pre-fabricated concrete structures, but the charge does not apply where cement and steel rods would already have been taxed. This measure, the department said, removes unfair competition between local and foreign contractors, with the latter having been  importing pre-cast concrete structures to avoid paying cement tax in Malta. 

Tobacco products

Tax on cigarettes, cigars and cigarillos is up by 3.76 per cent and that of rolling tobacco and other tobacco at 5.5 per cent.

Heating fuel

There is no change with regard to heating fuel. The discount on fuel used for heating will be retained but in order to stop abuse where such fuel is used as a propellant, a new system of refunds will be used in the same way as diesel used in the maritime sector. There will ultimately be no change in price.