The tax on plastic bags announced in the last budget will start being charged from March 1, as the new eco-contribution regime kicks in.
The tax is an attempt to reduce the 40 million plastic bags which the Maltese use yearly.
Unlike a similar eco-contribution measure introduced in 2005 - which had failed miserably - this regime does not differentiate between the conventional bags and those produced with environmentally-responsible degradable and biodegradable material. The same eco-contribution will have to be paid on any of the materials.
The move was met with criticism on the basis that it would be defeating the objective of the scheme (to promote greener alternatives to the traditional plastic bag). But Chris Ciantar, the permanent secretary within the Resources and Rural Affairs Ministry, yesterday defended this blanket contribution saying that there is no international standard on degradable and biodegradable materials.
He stressed that this was not a revenue generator but a measure to discourage people from using these plastic bags and opt for reusable bags instead.
Asked whether the government had a target it wanted to achieve, Dr Ciantar said there are no targets but added that similar schemes in other countries have reduced the use of plastic bags by 95 per cent.
The scheme will be enforced by the 40 enforcement officers of the VAT Department. The tax will apply as from March 1 to give producers enough time to get rid of their stocks.
Whoever produces or imports plastic carrier bags will have to print on each side of bag the name and address of the person registered under the Eco-Contribution Act, the registration number and the batch number of the consignment.
Shopkeepers will have to punch in the plastic bags, one by one, on the fiscal receipt.
Dr Ciantar said consumers will not be held liable for any shortcoming but anyone else found in breach of the eco-contribution rules will be prosecuted.
They would face a fine of not less than €1,000 for the first offence, €1,500 for the second, €2,000 for third and €2,500 for the fourth within a 24-month period.
On the fourth offence, the court may also order that an establishment be closed for between a week and a month.
People may also pay what is being described as a "compromise fine" to avoid prosecution. This fine amounts to €500, €750 and €1,000 respectively for the first, second and third offence.
Dr Ciantar said the government was aware that shopkeepers were already charging consumers for shopping bags, adding that this was "perfectly legal". When asked, he said €0.15 was the minimum charge which covered just the eco-contribution. Retail outlets are free to charge any price for the plastic bags.
The Chamber of Small and Medium Enterprises (GRTU) was one of the major critics of this new system. Contacted yesterday, however, GRTU director general Vince Farrugia said the chamber was foursquare behind the government after their concerns were addressed. He said the March 1 date gives retailers enough time to get rid of their stock.
He said that with such a measure, "plastic bags will die out". Now, he said, the GRTU was holding discussions with the government to distribute the grey recycle Tuesdays bags for free to encourage recycling. Sales of grey bags had reached a plateau, indicating that interest was dying out.
Mr Farrugia said retailers did not want to distribute plastic bags for free because when a big chain of supermarkets came to the island, it started charging for bags, making them feel disadvantaged.