In terms of the Universal Postal Service Obligation, MaltaPost plc provides several services which result to be financially loss-making, also due to year-on-year decreases in postal volumes, the effect of BREXIT, the impact of the introduction of VAT on low-value items originating from non-EU countries, rising costs and other global market forces. The cumulative result is that the Universal Postal Service became financially unsustainable.

Therefore, the Company required a mechanism that would revise tariffs in a manner that addressed ongoing market challenges also taking into account reducing traditional postal volumes and increasing costs.

Following detailed discussions with the Malta Communications Authority, a mechanism that automatically sets tariff increases was developed. Following a period of public consultation, the Malta Communications Authority has approved the introduction of the Postal Tariff Mechanism on 30th August 2024 so as to safeguard the sustainability of the Universal Postal Service in Malta.

The revised postal tariffs that shall be implemented with effect from 9 Sep 2024 are found in the Table enclosed.