The Resources Ministry has stopped short of admitting that snipping off the handles of a taxable plastic bag and distributing it without charging the €0.15 eco tax is a loophole in the new law.

The ministry simply described the practice as "not a practical solution to be adopted by shop owners".

The new eco-tax on plastic bags does not apply to bags without handles. Old stocks of carrier bags that do have handles can only be used until May 1, after which only bags bearing a special label can be distributed.

But a confectioner has come up with a way to give out tax-free plastic bags beyond the deadline - he has chopped off the handles off all the bags he has in stock. That way, he can continue giving away bags for free beyond May 1 and use up his old stock in the process.

The tax, which was introduced at the beginning of this month, has been widely criticised by environmentalists for failing to differentiate between conventional bags and the more environment-friendly option - biodegradable bags.

The ministry has staunchly defended its decision to tax biodegradable bags at the same rate, saying they have the same negative aesthetic impact when thrown away.

However, it now turns out that if shops supply their customers with bags without handles - whether snipped off or made like that - they will be able to avoid the tax.

Asked if these bags would be taxed, given that they have the same effect on the environment as the plastic carrier bags, a ministry spokesman said the government did not want to introduce the eco tax on these bags because "they are used to carry food items such as bread".

"We would need to understand the repercussions on other food items too," he said, in reference to the fact that bags without handles are usually used to carry purchases like cheeses or fruit and vegetables.

Labour spokesman on the environment Leo Brincat said he did not know "whether it was an oversight by design or by default". He said on this issue, the government had tried to hit the ground running and it was now ironing out the mistakes.

"The environmental objective will most likely not be met but I hope to be proven wrong," he said.

mxuereb@timesofmalta.com