The government's decision to impose an eco tax on plastic bags was yesterday criticised by both the Labour Party and the Malta Chamber for Commerce, Enterprise and Industry.

Unlike a similar tax introduced four years ago, which had failed miserably, the new system does not differentiate between conventional bags and those produced with environmentally-responsible degradable and biodegradable material.

However, in a sudden change of heart, the government may waive the tax on biodegradable plastic bags, amid increasing calls that they are the most environmentally-friendly alternative.

Labour said the government failed to distinguish between the different types of bags by imposing a tax that equally affected all of them and, consequently, failed to promote the use of genuine biodegradable bags.

Meanwhile, the chamber said it believed the proposed system caused undue hardships to several operators in the market, including major retailers that import plastic bags.

It said the authorities should have initiated a better consultation process on the implementation of the tax as most operators involved had only received news of the decision from the media.