"Retailers say moratorium would have cost government much less"
The government still has no idea how much it will cost to repurchase the old stocks of plastic bags from retailers.
A Resources Ministry spokesman confirmed that the government did not know how many plastic bags were still on the local market despite offering to purchase them from shop owners at the full cost. The figure of three million bags had already been floated as a rough estimate.
The government decided to purchase all existing stocks of "legally bought" plastic bags from retailers as the transition period for the implementation of the new plastic bag regulations came to an end on Friday.
Plastic bag producers and shop owners were petitioning the government to place a two-year moratorium on the new tax to give them more time to get rid of their old stock.
The majority of retail outlets usually ordered quantities of between 5,000 and 10,000 bags, which would last them at least two years, depending on their size and location.
Manufacturers, wholesalers and shop owners had lashed out at the new 15c eco tax because they said they did not have enough time to dispose of their stock.
The aim of the tax is to drastically reduce the 40 million plastic bags the Maltese use each year.
In a bid to ease their situation, the government gave them up to last Thursday to get rid of stock and promised them a refund of the eco tax they paid on the bags that remained. The refund, however, will not cover the actual cost of the plastic bags or the VAT they paid on them, so it still leaves businesses out of pocket.
Retailers still complained and insisted that even if they are given 100 extensions, they would still not utilise their stock as customers were unwilling to pay a minimum of 18c for a plastic bag.
This situation was 'solved' when the government opted to purchase the existing stock, paying retailers in full, and then sell the stock for recycling.
But when questioned about the latest move, the Resources Ministry said the stock list was still being compiled so it did not know how many plastic bags it would be purchasing. Moreover, it confirmed that those retailers who were abroad during the registration period lost their chance for any reimbursement for their stock.
Asked when retailers will be receiving the payment for the bags sold to the government, the ministry spokesman said payment will be carried out once the verification exercise with the departments are completed.
While welcoming the initiative taken by the government to buy their stock at the cost price, a number of retailers said the introduction of a moratorium would have cost the government much less. They also wondered how long it would take the government to pay them for this stock.
The new tax does not differentiate between degradable and conventional plastics and its environmental benefits have been questioned by both environmentalists and retailers.
Whoever produces or imports plastic carrier bags will have to print the name and address of the person registered under the Eco-Contribution Act, the registration number and the batch number of the consignment on each side of bag.
mxuereb@timesofmalta.com