Excise tax on spirits is being cut as from January 1 in an attempt to discourage people from buying large amounts of alcohol from Sicily, which is then re-sold to Maltese retailers.
The problem of the illicit sale of spirits has long been highlighted by Malta's leading importers of spirits who have claimed unfair competition was taking place.
With immediate effect, however, the excise duty on alcopops, a popular drink among teenagers, is being raised.
A sum of €100,000 is being earmarked to enforce drinking laws.
The legal age for alcohol consumption is being raised from 16 to 17 and an intensive awareness campaign on the dangers of excessive use is being launched. This is aimed mainly at youngsters.
Excise duty on tobacco products, including cigarettes, is being raised by €0.20 a packet.