The development of excise duty legislation in Malta in the light of European Union law

Abstract

During the last years, we have witnessed a radical restructuring of the fiscal system in Malta. Some of these changes were brought about as a direct consequence of Malta's aspiration to accede to the European Union, while other developments were inspired by the government's ambition to turn Malta into a financial hub. The introduction of value added tax, its substitution for customs duties, and the restructuring of the excise regime, represent the most significant changes made in the field of indirect taxation - changes which were invariably caused by the drive towards full European Union membership. This dissertation focuses on the development of excise legislation in Malta vis. European Union law, opening with an attempt to define the term excise. A brief outline of the merits and demerits of indirect taxation in general concludes the first chapter. The discussion is subsequently directed to trace the basis, legal and otherwise, for the harmonisation of indirect taxation in the European Union, with special reference to excise duties. This is followed by a detailed insight into the development of excise policy and legislation, and a description of the status quo, in the European Union. Having established the parameters of European Union excise requirements, logic dictates that an overview of excise legislation in Malta is forwarded and related to the conclusions drawn in the previous chapter. Finally, a resume' of the proposed Excise Duty Act 1995, in relation to the findings drawn in chapters one to four is given in the concluding chapter.