From September eco-tax will no longer have to be paid on electronic waste, such as laptops and fridges as an EU directive regulating electronics will finally start being implemented, Environment Minister Leo Brincat said.
The removal of the eco-tax will act as an incentive for the recycling of a range of discarded electronic objects and white goods, including mobile phones, tablets and washing machines.
Mr Brincat said two legal notices will shortly be published: one amending the Eco-Contribution Act to remove the payment of the tax on electronic items, and the other introducing regulations according to the Waste Electrical and Electronic Equipment Directive.
Eco-contribution was introduced in 2004, based on a polluter-pays principle, making importers pay for the recycling and treatment of a range of items ranging from beverage containers to fridges.
Over the years businesses strongly objected to this tax arguing that it placed Maltese businesses at a disadvantage when compared to online retailers.
An incentive for the recycling of a range of discarded electronic objects
They also complained that the money collected – about €7.8 million a year – went into the government coffers rather than environmental initiatives.
Following a Budget 2015 promise, importers will no longer have to pay eco-tax on electronic and electrical equipment but will have to abide by the EU directive on waste management.
They will have until the end of August to inform the Malta Environment and Planning Authority, as the regulator, whether they will be doing so by joining an authorised waste management scheme or if they will be self-regulated according to the directive.
They can also choose whether to place a bank guarantee or opt for insurance cover as a safeguard and commitment that they will be abiding by the directive.
Mr Brincat added that electronic waste collected by local councils and that deposited in civic amenity sites will be managed by WasteServ that will then divide it among the authorised schemes.
Anton Borg, from the Malta Chamber of Commerce, Enterprise and Industry as well as Paul Abela from the Chamber of Small and Medium Enterprises – GRTU both welcomed these measures.
Mario Schembri, from the private waste collection agency GreenPak, said the agency offered its assurance to meet the directive targets in Malta.