Issue link: https://maltatoday.uberflip.com/i/313770
maltatoday, SUNDAY, 18 MAY 2014 12 News MIRIAM DALLI WHEN Finance Minister Ed- ward Scicluna faced criticism that retail trade was on the decline, his first reaction was to appear per- plexed, claiming that the prolifera- tion of online buying from internet websites was not being accounted for in retail statistics. Scicluna argued that online pur- chases made by the Maltese on such websites as clothing giant Asos or music and book trader Play.com was not being captured in retail trade data. The Nationalist Opposition has set much store in documenting the drop in retail trade, saying ths reflected less spending power and businesses that were not faring well. "At the moment the numbers do not add up. The expenditure side measure of our gross domestic prod- uct, falls short of the income side," Scicluna said in reply to questions raised by MaltaToday on the matter. The minister now plans on asking the National Statistics Office (NSO) to keep better track of online trade. The best way to do so would be to survey consumer's purchases from household surveys – something that already exists given that households are obliged to report all their pur- chases when surveyed in the House- hold Budgetary Survey (HBS). HBS results, NSO director-general Michael Pace Ross said, are inclusive of internet purchases. But Scicluna is now proposing that data samples from bank transactions and credit cards should also be col- lected. "The best way is to survey consumer's purchases from house- hold surveys. Another source which can complement this is to collect data samples from bank transactions and credit cards," the minister said when asked how NSO could keep better track of online sales. Scicluna said the banks "will be asked" to transmit aggregat- ed data from a given stratified sample. He added that the Malta Statistics Au- thority intends to review the current methodology and see what needs to be done to ensure that consumption is covered adequately by the national statistical agency. Online trade is already monitored through a number of sources. For example, overseas exporters send- ing goods to Malta are obliged to de- clare their exports once a threshold is reached. "In this way, transactions from major foreign retailers are reported in trade data, and are captured in household consumption expendi- ture in the National Accounts. On- line purchases by VAT-registered traders must be declared as Arrivals from other member states on the Supplementary Declaration (Intra- stat) system," Pace Ross explained. In the case of online purchases sourced from non-EU countries, these should be declared since they could be liable to customs duty. "Normal business consignments are recorded electronically, while consignments by private individuals are recorded manually on a simpli- fied Single Administrative Docu- ment," Pace Ross said. Additional to the HBS results, the NSO also has an ICT Usage Survey that provides some information on the type of goods and services ac- quired over the internet. "Since internet purchases are on the rise and may not be fully cap- tured by available sources, the Na- tional Accounts Unit imputes addi- tional estimates over and above the data already included in the men- tioned sources," he added. Online trade data is included when NSO obtains monthly or quarterly turnover data from local enterpris- es. Every month Eurostat publishes a news release based on information provided by NSO on retail trade, where online purchases from local sources are included. However, purchases from abroad are not included in monthly busi- ness surveys since the coverage deals with sales of goods by resident enterprises. Pace Ross said the NSO was aware of the increasing importance be- ing assumed by online retail trade and its effects on inflation. He con- firmed that online retail trade will receive "specific treatment" in the forthcoming Household Budget Survey. "Meanwhile, work has started in this regard as internet purchases are reflected in both consumer price indices compiled by the National Statistics Office. Discussion on this topic at European level is ongoing," he added. Credit card data could be used to track growing Maltese online purchases Ministry for Home Affairs and National Security The Office of the Refugee Commissioner 37/39, Rue D'Argens, Msida CALL FOR TENDERS The Office of the Refugee Commissioner would like to invite parties to submit their tender s for the: REFCOM 1/2014 Setting up of an Energy Efficient ID Card Working Station Tender document can be downloaded from the following links: Either http://mhas.gov.mt/en/MHAS-Information/Tenders%20-%20RFQ/Pages/default.aspx or http://mhas.gov.mt and click on 'Tenders'. The document must be submitted by not later than noon (CET) of Friday, 6 th June, 2014 either by registered mail/courier OR delivered by hand to: The Office of the Refugee Commissioner, 37/39, Rue D'Argens, Msida MSD 1368 Opening hours are from 8:00am to 12:30pm. Further information can be obtained from the Office of the Refugee Commissioner or by e-mail to refugee-commission@gov.mt. General Programme Solidarity & Management of Migration Flows 2007-2013 Tender is part-financed by the European Union European Refugee Fund (ERF) Co-financing rate: 75% EU Funds: 25% National Funds Sustainable Management of Migration Flows Minister suggests collecting aggregate data samples from banks to monitor online trade and map out retail trade