Fish farm lobby gets its way as feed tax left unimplemented

A much vaunted budget measure that was intended at addressing the environmental impact of fish farms in Maltese waters, was never implemented after lobbyists for the multi-million business weighed in.

In its Budget 2015, the government had announced the introduction of a levy of 10c per kilogramme of feed used in fish farms to address the industry’s environmental impact.

Finance Minister Edward Scicluna had then said that the fish farming industry was felt to be “a strain and perceived as not giving its due”, especially due to the impact of feed used in fish farms.

“The government believes this sector must give a larger contribution in line with the polluter pays principle. Those who pollute must pay for it,” Scicluna had said.

But the plans for that excise, which was to raise €2 million, were never carried out after a government volte-face in the wake of protestations from the industry.

Instead a fee was introduced on caging of bluefin tuna, introduced in the last quarter of 2015, and which generated €1,104,000 in revenue.

The fish farm food tax was the only one not implemented from Budget 2015. Another much criticised excise duty on Maltese wine producers, which angered local producers, was introduced at a handsome €200 on every 1,000 litres – double the fiscal weight of the proposed fish feed tax.

Malta’s aquaculture industry is jealously guarded by the businesses who run the game: in 2013 their gross output was of over €98 million, and increased their fish volumes by 30% to a total of 9,000 tonnes.

Fish farms however generate controversy over intensive tuna ranching methods, and the environmental effects of farming: in the past the seaside town of Birzebbugia blamed fish farms for a greasy substance seen floating off Delimara and Birzebbuga, drawing swimmers’ complaints. The local council had insisted that the substance was from the remains of feed used by fish farms.

Dry fish feeds contain fish meal and fish oil.

While fish farms got off the hook where it comes to excise taxes, Malta’s viticulture industry had to swallow its own bitter pill.

The excise tax on wine was protested by winemakers, who claimed it put further pressure on an already fragile local industry. Viticulturist and Marsovin CEO  Jeremy Cassar had said the future of his 100-year old family business may be in jeopardy thanks to the new 15c-per-bottle tax on wine which in 2015 generated €1.9 million for the public coffers.

“It puts Maltese wines at a disadvantage vis-a-vis foreign imports,” Cassar had said when the tax was introduced, with no detailed information for winemakers before the announcement was made. “The only other European country that imposes a tax on wine is France, and the amount is minimal, around 3c.”

“We have invested in refining the grapes, sent people abroad to study viticulture, employ hundreds of locals and preserve a unique part of Maltese culture. Our vineyards attract tourists and we supply practically every restaurant on the island. Why is the Maltese wine sector being treated so badly?” Cassar asked at the time.