Shop owner cleared of selling cigarettes above established price after case blunders

The Magistrates’ Court has cleared a shop owner of accusations that he sold cigarettes above the established retail price, after ruling that key statements relied upon by the prosecution were inadmissible.

The case concerned two inspections at the shop Hole in the Wall in San Ġiljan on 2 and 15 March 2018, during which customs officials seized cigarette packets being sold at around €0.20 more than the recommended price.

A total of 224 packets were seized in the first inspection and 735 in the second, with duties calculated at €10.53 and €34.55, and VAT at €6.94 and €22.79 respectively. During the second visit, an employee said the additional amount constituted a “service charge.”

However, the court noted that shop owner John Bonello had been questioned on site at a stage when he was effectively a suspect, without being informed of his right to silence or to legal assistance. Customs officials told the court they did not issue cautions because they considered their role limited to seizing goods rather than detaining individuals. The court ruled that any statements attributed to Bonello during the inspection could not be relied upon.

The prosecution also attempted to rely on statements said to have been made by an employee who allegedly contacted Bonello during the inspections and named him as the owner. That employee was not brought to testify, and the court held that the statements amounted to hearsay. No documents were exhibited linking the shop’s VAT number to Bonello, and there were no photographs of the seized packets or of the shop layout.

The court further remarked on the significant delay in instituting proceedings. Although the inspections took place in March 2018, the letter authorising prosecution was issued in March 2020, while charges were only filed in September 2023 — just months before the six-year prescriptive period under the Excise Duty Act was due to lapse.

In view of these shortcomings, the court said it was not morally convinced that the charges were proven and acquitted Bonello. It nevertheless ordered the confiscation of the seized cigarette packets, which is required by law regardless of conviction.

A copy of the judgment will be sent to the Speaker of the House, the Minister for Justice and Reform of the Construction Sector, and the Minister for Finance, so that consideration may be given to possible legislative amendments regarding the duty of customs officials to issue a legal caution when questioning persons suspected of excise offences.