GRTU has welcomed Government's intention to re-introduce incentives that will encourage local businesses to set up an online selling platform.

GRTU has been calling for another scheme since the closure of the previous, successful scheme. Experience with the previous scheme will ensure that the new scheme functions better and that the funds will reach the sectors where they are most needed in line with Government’s mandate.

Following thorough consultation with its members, GRTU has presented a comprehensive set of proposals in line with the eCommerce strategy consultation launched by the Government late last month.

Online selling still presents a significant challenge for the majority of Maltese enterprises especially the smaller ones and GRTU estimates that around 30% of business in retail is being lost to online sales from other countries it is therefore no longer an option to opt out.

Figures show that the online sales market has been progressing at a fast pace and businesses need to adapt to this new reality as otherwise they will eventually be forced out of business.

Many Maltese businesses seem to wish to invest in this medium and we have identified a number of issues that are holding them back. GRTU has put forward proposals that build and improve on the previous scheme and mitigate issues that had arisen.

Government should move from a higher tax incentive to a lower capped grant that covers all or a large percentage of the whole investment. Together with this, Government should abolish the three quotes requirement as going for the cheapest option is not always in the interest of quality and business.

Clear and transparent criteria for the adjudication and a points system to prioritize which enterprises need most help according to size and sector amongst others. These criteria should be designed with the input of the stakeholders and should be made public.

The assistance would ideally be segmented to cater for the needs of the enterprise and not just limited to the setup of the eCommerce site.

Upgrading of already existing websites, initial setting up costs such as consultancy, data inputting and translation services, online marketing strategy costs, search engine optimization, eCommerce enabled mobile apps, upgrading of Points of Sale and Stock Control Systems to link to eCommerce sites, should all be considered for possible assistance.

Reimbursements to the enterprise would be made within strict deadlines.

•    MCA would manage a list of approved service providers that would simplify and fast track the application process.

•    A directory of enterprises having an eCommerce site should be created which would include the possibility for customers to comment and leave reviews thus promoting a Peer review mechanism similar to what is being used by major players in the industry.

•    The scheme should consider that Web Development companies might be inundated with orders and should therefore stagger the assistance over an applicable period of time.

•    The inclusion of all business sectors even if purchases cannot be effected online as is the case with real estate and restaurants. These sectors were excluded under the previous scheme but still have a lot to gain from a website even if online purchases are not possible for these kinds of businesses.

There are other factors that are penalizing Maltese enterprises and holding them back from investing in this medium.

The archaic Eco Tax regime is one of them. This tax is imposed only on Maltese originating sales and therefore local businesses are at a significant disadvantage. A Maltese entrepreneur would have to add €35 plus VAT on a tablet that costs €50.

This means that on some items the tax component amounts to half the value of the items. GRTU has spent a number of years pointing this out. Unless this is tackled with urgency, it is useless advertising assistance because effected sectors simply cannot compete.

GRTU members have also expressed their concern on courier costs which tend to be much higher for Maltese businesses.

GRTU augurs that these proposals are taken up and that the plan is put in action in the very near future as Maltese enterprises have a lot to catch up on. GRTU will continue supporting its members in their adaptation to help them increase their competitivity.