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News • July 11 2004


Government secretive on eco tax

Julian Manduca

While eco-taxes are expected to be introduced within the coming weeks, the government is keeping tight-lipped and the public remains in the dark about what to expect.
When MaltaToday asked the environment minister what sort of products could be affected and how the system could work, the reply was: “Please note that discussions are still ongoing and therefore it is still premature to pass any comments.”
The ministry of finance was equally reluctant to disclose any information and told MaltaToday: “Last year’s Budget Speech stated Government's intention to introduce an Eco Contribution based on the polluter pays principle.
“Government is presently carrying out consultation meetings with representatives of the sectors that are involved and will be in a position to give further details once this process is finalised.”

The idea of eco-taxation is to use fiscal measures to encourage the purchase of environmentally friendly packaging, mostly beverage containers.
Generally a tax is placed on all containers, but when the container can be returned the amount paid in tax is recovered by the consumer. If the package is one-way – or throwaway – consumers pay the deposit or tax and cannot recover it as the packaging, usually a bottle, is not returned to the retail outlet.
Eco tax schemes can vary from country to country, but the principle usually adopted is that the more environmentally unfriendly the package, the higher the tax to be paid.
The most damaging containers will be those made of PVC - the most dangerous of plastics in common use - when there is no possibility to return the bottles. In Malta PVC is used for the bottling of oil and detergents, but no longer for water except in the large 19-litre bottles sold by H2Only and Eco-pure, which are returnable.
Next in line is PET, commonly used for water, ‘health drinks,’ yoghurts and fruit juices. If the PET is one-way it is more damaging to the environment than if the plastic container is recovered for recycling.
Also environmentally unacceptable especially if no recycling scheme is organised is aluminium, commonly used for ‘health’ drinks and beer.
Cartons which are used for the packaging of milk, wines and juices, are also considered to be not ideal packaging especially as these cannot be returned and refilled.
Glass is the least damaging of the materials, at least in its disposal and should the container be two-way then glass is considered to be an ideal material. If the bottle is one way then it is likely to be subject to an eco-tax, unless recycling of the glass is organised. Glass is currently the favoured packaging for wine, alcoholic drinks including beer, sparkling drinks including ‘soft drinks,’ and some types of water.
Eco-taxes recently came under fire from deputy prime minister Tonio Borg, who criticised Alternattiva Demokratika for supporting taxes that support the environment, in a surprising statement prior to the European Elections. Dr Borg explained his opposition to eco-taxes to MaltaToday this week saying his: “criticism was against eco-taxes related to the tourism industry,” but his explanation came somewhat late for the public to grasp what he was getting at.
The Green Party, as well as environment groups have pushed for the introduction of eco-taxes over the past years, arguing that this is one of the fairest forms of taxation.
The Greens’ spokesperson on the economy, Edward Fenech this week argued that revenue from eco-taxation should be directed towards job creation and environmental projects.

julian@newsworksltd.com

 

 

 

 

 





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