The F.O.I. welcomed the significant adjustments to the eco-contribution tariffs and parameters related to plastic bags manufacturing and usage, announced by government recently.
Following the publication of the original tariffs, the FOI immediately asked for a review of the announced tariffs, which were putting unsustainable pressures on industry. Mostly hit were the producers of plastic bags and other industries that use bags in their manufacturing processes.
During the course of these past weeks, the FOI was constantly in contact both with its members and with ministries involved in the issue, namely the Ministry for Rural Affairs and Environment as well as the Ministry of Finance. In its meetings with top Government officials, including Minister George Pullicino and Parliamentary Secretary Tonio Fenech, the senior FOI officials insisted that the tariffs and parameters, set in the Eco-Contribution Act, were excessive and ambiguous.
During these meetings, it was clarified that there would be no eco-contribution on plastic bags used in industrial processes, whether for packaging or for internal use. Furthermore, it was agreed that, in terms of the eco-contribution on all other bags, the methodology of calculating such contribution would be revised and the contribution on the bin liners (otherwise known as garbage bags) would be drastically reduced.
Moreover, last Thursday, MBB Junior Policy Advisor Omar Cutajar represented the FOI at an information meeting held at Malta Enterprise, organised by Edwin Vassallo, Parliamentary Secretary for Small Business and the Self-Employed.
The information session, which focused on the administrative application of the extended Eco-contribution scheme for producers (importers and manufacturers), provided a hands-on opportunity for concerned business operators to seek clarifications on the administrative implementation of the Eco-contribution scheme.
The MBB representative sought clarifications on a number of pending issues through questions posed to the respective VAT Department directors and Customs Department officials sitting on the panel.
James Farrugia, director International and Legal Affairs, explained that following the extension of the Eco-contribution scheme through the publication of Legal Notice 533/2004, the payment of eco-contribution on stocks would be applicable once a first transaction releasing the product on the market would have been registered.
Joseph Sammut, director Operations at the VAT Department, elaborated on the cost structure of the items incurring eco-contribution under Legal Notice 533/2004, explaining in particular how VAT is factored in the final cost aggregate of the products.
The Customs Department officials clarified a number of difficulties raised by business operators present for this meeting with regards to certain HS codes and their equivalent product descriptions.
At the end of this meeting, Mr Vassallo promised that other follow-up meetings will be organised in the coming weeks to assess both other unresolved queries, as well as potential new problems, that the local business community might encounter in the administrative implementation of the Eco-contribution scheme.
In the meantime, the FOI will be monitoring any further developments with regard to the expected publication of the amending legislation to Legal Notice 533/2004.