The Ombudsman has declared that the government’s excuses to deny eco-tax exemptions to those companies participating in organised recycling schemes are unacceptable and could lead to abuse, Green Dot Malta said today.

The Ombudsman was reporting on a complaint initiated in 2009 by Green Dot Malta - the largest waste recovery scheme in Malta.

He said that the company's members had, since 2006, been entitled to eco-tax exemptions or tax credits.

“Once the approved schemes were set up, the government was obliged to issue exemptions and/or credits” the Ombudsman was quoted as saying by the company.

CEO Mario Schembri welcomed the decision.

"By refusing to abide by its own rules, the government has for the past five years been denying a legitimate right to GreenPak’s members and creating a situation of unfair competition, Mr Schembri said.

Helga Ellul, president of the Malta Chamber of Commerce, Industry and Enterprise said she was thankful that the Ombudsman had brought in much needed light into a very darkened room.

"In our dealings on the issue of eco-tax exemptions and refunds, the government has always been vague and elusive in its action and statements. Now the Ombudsman has made it very clear for all – on the day a producer signs up to an approved scheme, the government is immediately obliged to issue credits and exemptions. It has really become that clear and simple to follow.”

“Malta is finally realising and acknowledging the good and important work that GreenPak is and has been doing for so many years,” commented Mr Joachim Quoden, CEO of Proeurope. “We could never understand how a small island like Malta, with its inherent difficulties and higher costs to recycle waste, would make it even more difficult on itself by imposing further economic burden on industry in the form of environmental taxes. It is simply illogical to expect all this from a small economy. Now that this serious shortcoming has been finally recognised, Proeurope looks forward to see corrective action being taken to see Malta too doing well with the recycling of its packaging waste.”

Informed sources said members of Green Dot should have been given over €4 million in refunds since 2006.