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Julian Manduca
The government is planning to make changes to the eco-contribution rates that were introduced at the end of 2004 and backdate the changes in a move that will leave consumers out of pocket, MaltaToday has learned.
Replying to questions put to it by this newspaper a ministry for the environment spokesperson announced: “government has had a number of meeting with GRTU officials representing the computer sector. As a result of these discussions, amendments to the Eco-Contribution will be published in the coming days. Obviously the sector will be regulated by this amended legal notice that will be retro-active as of January 1 2005.”
While the official was referring only to the computer section, MaltaToday was informed by the same official that all the adjustments to the rates would be retroactive to the beginning of the year.
This will mean that all importers and retailers that have charged the eco-contribution according to the law will be eligible to a refund, or pay the lower rate, but consumers will have been, and continue to be overcharged.
GRTU officials told MaltaToday they were not informed about the plans to make the new rates retroactive. Indeed traders and importers of computers and their accessories have been going round the bend trying to understand what their duties and responsibilities will be following the introduction of the new eco-contribution rates at the end of 2004.
The computer traders and importers are not alone in their confusion, and following a decision that all legal notices are to be scrutinised by Cabinet uncertainty creeps in once again on the rates that will eventually be adopted.
On Friday January 7, environment minister George Pullicino and finance parliamentary secretary Tonio Fenech had announced that the eco-contribution on plastic bags was to be slashed from Lm10.67 per kilo to 6 cents per bag, but to date no change has been made to the legal notice even if indications are that that should happen this week.
MaltaToday was informed by the Department of Information that changes to the rates are expected to be discussed by Cabinet tomorrow and that changes to the eco-contribution rates will follow that discussion.
The eco-contribution has been a subject of major controversy since its introduction on 1 September of 2004 and although a Commission was appointed to advise government on how the rates and workings of the law could be fine-tuned, no changes have resulted from that exercise to date.
Environmentalists and Alternattiva Demokratika continue to insist that eco-taxes should be revenue neutral and higher taxes on eco-unfriendly products should be set off by lower taxes on eco-friendly products. They argue that the primary idea behind eco-taxes is to encourage people to change their consumer patterns in favour of products that do no, or little harm to the environment.
Among the businesses also upset by the regulations are suppliers of large bottles of water that are regularly collected and refilled and eventually exported for recycling at the end of their useful lives. These bottles present a viable alternative to other smaller, non-refillable bottles, but no distinction is made between them in the law.
No distinction is made either between a hot/cold water dispenser and a large domestic fridge; between a wine bottle that is refilled and one that is thrown away; between a small tyre and a large one used on commercial vehicles. An eco-contribution is due on a shampoo that exceeds 50ml but not on a smaller one; 5 cents is to be paid on a large whisky bottle and also on a miniature one.
MaltaToday is informed that, up to the time of going to press the government intends changing the rates for plastic bags, computer accessories (where only computers, monitors and printers will be charged, freeing keyboards, mice and other accessories), and shotgun cartridges where those used for clay pigeon shooting will not be subject to the tax. Government has not replied to the suggestion that the same clay pigeon cartridges could also be used for shooting birds, and in another section of the press it was reported that chewing gum, presently subject to a 5 cents charge per 10 grams will also be changed.
Questions put to finance Parliamentary Secretary Tonio Fenech on 13 January regarding his position on how much eco-contribution should be charged and how much should be passed on to the VAT department until the eco-contribution rates are changed remained unanswered up to the time of going to press.
julian@newsworksltd.com
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