Industry demands early appointment of technical commission

The Malta Federation of Industry (FOI) said yesterday it was surprised to learn that the Chamber of Small and Medium Enterprises, GRTU, that it was now satisfied with the mechanics of the eco-contribution law and that it has now withdrawn all its objections to the tax's immediate implementation.

The FOI insisted it is against any form of additional tax because taxation in Malta is already too high. "If this eco-contribution turns out to be a new tax on the general consumer it will have a consequential increase in the cost of living, an effect on statutory wage increases and a reduction in the spending power of the consumer," it said.

The federation said the country is already pricing itself out of the market for exports of both goods and services through self-induced inflation caused by high taxation and wage increases that are not productivity-related. "All the social partners should therefore seriously consider the implications of the eco-contribution in the context of the country's competitiveness and should work together to preserve this if the economy is to make any progress," the FOI said.

It said it had proposed the setting up of a technical commission in order to assess the economic implications of the eco-contribution, to assess waste packaging recovery schemes and, generally, to keep down costs for enterprise and consumers alike, while minimising bureaucracy in the implementation of the law.

"The FOI therefore urges the government to appoint the commission without further delay."

The FOI said that while it understands the government's social obligations to safeguard the environment by making polluters pay, it was insisting that a balance be found for the proposed eco-contribution, through compensatory measures to both the manufacturing and service industry. "Only this type of approach will send a clear message to enterprises and consumers alike that this is not just another excuse for the government to increase taxation but a genuine effort towards solving the country's environment problems."