Labour favours tax exemption on biodegradable plastic bags

The Labour Party is in favour of an eco-tax exemption on biodegradable plastic bags although it believes the country's long-term goal should be a ban on plastic bags.

The Labour Party (PL) spokesman on the environment, Leo Brincat said the government should listen to environmental groups, manufacturers and importers of plastic bags and, at least, give them and retailers enough time to use stocks. The new eco tax, which the government wanted to impose as from March 1, "does not make sense".

Unlike a similar tax introduced in 2005, which had failed miserably, the new system does not differentiate between conventional bags and those produced with environmentally-responsible degradable and biodegradable material. The goal is to eliminate or reduce the 40 million plastic bags used by the Maltese every year. In fact, the eco tax would impose a hefty €0.15 on each bag.

Retailers have complained that they were not given enough time to get rid of their present stocks of bags bought before the budget, when the new tax was announced, and are asking for an extension. The government does not have any figures of the present stock of plastic bags.

In this scenario, the government recently indicated it may allow retailers some breathing space on a case-by-case basis but also suggested it may waive the tax on biodegradable plastic bags, amid increasing pressure from the industry, which says such bags are the most environmentally-friendly alternative.

On this point, Mr Brincat said Labour agreed with a long-term wholesale ban on plastic bags but felt such a ban should come about gradually and that the government should waive the eco tax on biodegradable plastic bags for the time being in order to allow for an eco-friendly alternative to the present dependence on conventional bags.

He pointed out that the market was saturated with non-degradable bags labelled as "degradable". Mr Brincat called for an immediate change to the new rules on plastic bags.

Past measures had increased the use of plastic bags and, as a result, there was no control over the eco contribution, leading to abuse, he pointed out, adding that the government was ignoring the fact that international standards existed on biodegradable bags and was doing nothing to promote their use. Mr Brincat feels the need of an ongoing educational campaign promoting the use of alternatives to the common plastic bags and the use of cloth bags.

He agreed with the Chamber of Commerce and Enterprise that the government's plans to tax all plastic carrier bags at equal rates "made no business, economic and environmental sense".