How will the producer pass on the eco-contribution collected to the government?

The VAT Department is the competent authority that is administering the eco-contribution Act. The liability for the payment of eco-contribution lies with the producers and they will be required to pay their dues through an eco-contribution return.

Tax periods are being devised in a similar way to the existing VAT periods. Producers are to maintain separate documentation to account for sales liable to eco-contribution.

Producers are to charge the eco-contribution when items are first sold or transferred, or otherwise disposed of, destroyed or when they are no longer in the manufacturer's possession.

Stocks held by producers (importers or manufacturers) before September 1 are subject to eco-contribution. On the other hand, stocks held by retailers from September 1 do not incur the eco-contribution.

For a short transitional period of time, retailers may be offering the same unit cheaper than their suppliers. This, however, is only a transitional circumstance and will be phased out as stocks are replenished.

Conversely, all items contracted for delivery after September 1 this year are being charged eco-contribution irrespective of the price on the sales contract.

According to regulations, the transitory provisions provide for such events. Moreover, if the item physically changed ownership after September 1, it is liable to pay contribution.

In the case of bottlers, with regard to stocks, these are expected to pay 1c on each refillable bottle in stock from September 4. Since this sum is expected to run into thousands of liri, bottlers are being given the chance to pay in four equal instalments, within a one-year time-frame.

In the meantime, a technical commission was set up to discuss the technical aspects of the eco-contribution implementation. The commission's terms of reference are to find ways in which private schemes for waste collection should work, for both industrial and domestic waste. The commission is to analyse how the law could be enforced and to propose ways to do this without unnecessary bureaucracy.

The commission is made up of representatives from the Malta Chamber of Commerce and Enterprise, the Federation of Industry, Malta Chamber of Small and Medium Enterprise (GRTU), VAT Department, Finance Ministry, WasteServ Malta Ltd, Malta Environment and Planning Authority and environmental NGOs.

Dr Ciantar is head, Strategy and Development, at WasteServ Malta Ltd.