In a statement issued on Saturday morning, the Economy Ministry announced that VAT charged on face masks and shields will go down from 18 per cent to five per cent, as a means of compensating proprietors who purchased masks before the Government announced an introduction of a price cap.

The cap, 95c for face masks and €5 for shields, had left many pharmacies out of pocket as wholesalers and agents had charged them at a higher rate than the Government cap.

The Malta Chamber of Pharmacies said they had not been informed about the impending price-order, resulting in a directive issued to no longer sell masks, despite the protective equipment being mandatory inside shops and public transport.

Following the directive, Government officials and the Chamber entered into discussions, resulting in the state agreeing to compensate pharmacies for the losses incurred.

Such compensation has come in the form of a decrease in VAT charged, which came into effect as from today through a published legal notice.

Minister Schembri explained that pharmacies will also be compensated for the difference between the price cap announced and the price at which the items were originally purchased.

For this, the COVID-19 Masks Subsidy Scheme has been launched, aimed at aiding pharmacies in alleviating wholesale cost-induced losses borne by the introduction of the capping, while also safeguarding the wider public’s interests.

The scheme can be accessed online via the portal http://mimcol.com.mt/covid-19-masks-subsidy/

It will be administered by Mimcol, which falls under the auspices of the Ministry for the Economy, Investment and Small Businesses.

“The decisions taken over the past days are the result of discussions held with all the relevant stakeholders in the industry. As a government, we sought to safeguard the interests of the consumers as well as the pharmacists, who shall now be benefitting from a compensation reflecting the difference of price in their purchased goods.

“I thank everyone involved for seeking to pull the same rope in the best interest of our people and nation. I also wholeheartedly thank all pharmacists for their valuable work and their cooperation in assisting the public throughout the Covid-19 pandemic,” said Minister Schembri.

All eligible parties for the Covid-19 Masks Subsidy Scheme will be granted a refund for disposable surgical mask stocks bought over the period from 17th April to not later than 4th May 2020. The refund is reflective of the difference between the purchased wholesale price (inclusive of VAT) and the €0.95 capping, not exceeding €0.70 per mask. As such, applicants need to provide the administering entity with invoice references, including stock quantity levels and respective purchase prices over that same period.

For verification purposes, applicants may be subjected to an independent on and off-site inspection to verify that the claims are true and fair irrespective of the certification of the applicant’s accountant. For further information one may send an e-mail on [email protected].

Minister Schembri thanked Prime Minister Robert Abela, Deputy Prime Minister Chris Fearne, Minister for Finance and Financial Services Edward Scicluna and Parliamentary Secretary for Consumer Protection and Public Cleansing Deo Debattista for their support throughout.