Issue link: https://maltatoday.uberflip.com/i/893950
maltatoday SUNDAY 29 OCTOBER 2017 2 News YANNICK PACE A system through which duty-free diesel is distributed to fishermen is fraught with potential loopholes that could lead to tax evasion and the sale of contraband diesel. An EU directive – implemented in Malta through an agreement be- tween the fisheries department and Malta's two fishing cooperatives – grants fishermen the right to pur- chase duty-free diesel for naviga- tion in EU waters while fishing. Each vessel is allocated a specific volume of fuel, which is calculated by the fisheries department ac- cording to a "formula" agreed upon by the department and the two co- operatives – the Koperattiva Naz- zjonali tas-Sajd and the Ghaqda Koperattiva tas-Sajd. The system was originally im- plemented through an agreement between the co-operatives and the fisheries department in 2000 and was later revised in a subsequent agreement signed in 2007. An industry source familiar with the process told MaltaToday that the current formula employed is based on the weight of the vessel's annual catch, rather than on its fuel consumption. In fact, according to the 2007 agreement, fishermen are allocated one litre of duty-free diesel for roughly every €1.50-worth of fish they sell at the fish market. "The EU directive that grants du- ty-free diesel specifies that it is to be used for navigation and not ac- cording to catch," they said. "Many fishermen have an allocation of say 40,000 litres of diesel a year and no- body will question that, but if they use 10,000 litres, they can do what- ever they want with the rest." Once calculated, the diesel alloca- tion is communicated to the state- owned Mediterranean Offshore Bunkering Co Ltd (MOBC) which in turn advises fuelling depot opera- tors, and issues an invoice for each fishing vessel's allocation. The process is overseen by the two co-operatives with which the fisher- ies department has a signed agree- ment. The source explained that, in most countries, vessels could fill up their onboard tanks, but weren't permit- ted to fill up additional portable con- tainers, as is permitted locally. This, they explained, meant that there was no way of telling where excess diesel was going. "It's either given to other vessels who don't have a fuel alloca- tion, or sold as contraband." Rather than lowering the risk of abuse, as the EU directive requires, the local system makes it more dif- ficult to minimize it, they said. In addition to the sale of contra- band diesel, they said there was also an issue related to tax since fisher- men could choose to register excess diesel purchased as part of their commercial expenses. "Their expenses are being regis- tered against their sales, so if you factor in that diesel you owe less in tax," they said, adding that in some cases a fisherman could be left with an extra 30,000 litres of diesel that he was free to sell. Replies to questions sent to the fisheries department had not been received by the time of going to print. ypace@mediatoday.com.mt PROCUREMENT MANAGER JOBSPLUS PERMIT NUMBER: 551/2017 Wasteserv has been entrusted with the responsibility for organising, managing and operating integrated systems for waste management in Malta since November 2002. Our ultimate aim is to encourage people to make waste management an integral lifestyle practice. Our endless commitment towards maximising resources for the proper management of waste together with generating renewable energy has opened a new challenging chapter. In 2018, Wasteserv will be taking on new projects that will lead to further improvement in waste management, which will also help enhance the quality of life in Malta. In view of this expansion, we are looking for new team members that will form part of an ever increasing dynamic organisation. As part of our continuous growth and gearing up for the upcoming challenges, we are seeking to recruit: For more information contact us on: Freephone: 8007 2200 | info.ws@wasteservmalta.com | www.wasteservmalta.com INTERESTED? EMAIL US ON RECRUITMENT.WS@WASTESERVMALTA.COM Applicants in possession of, or in the process of obtaining a post-secondary level Diploma at MQF 5 in Fields directly related to Management, Logistics, Supply Chain Management, Procurement or similar shall be preferred. Two years working experience within an equivalent position is required whilst experience in public procurement will be considered an asset. VACANCY CLOSING DATE FOR APPLICATIONS IS 10TH NOVEMBER 2017 Fishing duty-free allocation system opens door to abuse