Eco-contribution tax update

Subsequent to the publishing of the Eco-contribution tax, a number of tourism operators filed a request for a warrant of prohibitory injunction against the government of Malta in order to stall the entry into force of the discussed ECO Contribution Tax.

This warrant was filed as the relevant stakeholders felt that the Eco tax rules were being brought into force and effect without making the necessary consultations and without a two-month moratorium period allowing the operators to adapt their administrative processes to the cater for this new tax.

The request for a warrant of prohibitory injunction was however rejected by the First Hall of the Civil Court because it was held that the relevant criteria necessary for a warrant to be issued were not satisfied.

Nevertheless, it was now agreed to implement this Eco-contribution “Tourist tax” as from 20th June 2016.