Eco tax introduction postponed

Prime Minister Lawrence Gonzi yesterday told the constituted bodies that the controversial eco tax would not come into effect on August 1 - the date it was to be introduced - but he fell short of giving an actual date of implementation.

The social partners represented on the Malta Council for Economic and Social Development came head to head with the Prime Minister yesterday during a three-hour meeting in an attempt to mend bridges over what they see as a lack of consultation on the tax.

Speaking to reporters after the meeting, Dr Gonzi appeared satisfied that he had given a message of goodwill to the constituted bodies, though it was clear that there was no quick fix to the issue of the eco tax, which the government euphemistically calls an eco contribution.

Dr Gonzi said he was holding meetings with operators and organisations, which could lead to a different methodology in the way the eco tax would operate.

"This means that the impact of the tax could be eased," Dr Gonzi said, adding that he would be in a position to give a date for its implementation only once this process was over.

The social partners have been demanding a postponement of the tax, especially to enable producers, importers and retailers to gear themselves to be able to collect it and pass it on to the government.

Turning to other matters, Dr Gonzi said it was agreed that a series of meetings would be held between the government and the MCESD in the run-up to the budget, involving the Parliamentary Secretary in the Finance Ministry, Tonio Fenech.

The meetings would be discussing, among others, the competitiveness report drawn up by the MCESD as well as the White Paper on pensions reform, which is to be published shortly.

Union Haddiema Maghqudin general secretary Gejtu Vella underlined the importance of drawing up a Social Pact in order to protect workers' rights.

"If this doesn't happen, then the government would continue putting burdens on families," Mr Vella warned.

General Workers' Union general secretary Tony Zarb said the government was realising it had to change its attitude towards the social partners.

"We made it clear that the eco tax would be a burden on pensioners and workers, and the Prime Minister said it was possible that a solution would be found in this respect," Mr Zarb said.

GRTU director general Vince Farrugia sounded a less optimistic note.

"After this meeting, the trader still doesn't know where he stands," Mr Farrugia lamented.

He said the least he expected from Dr Gonzi was a date when the government intended to introduce the eco tax, as this would enable traders to make plans.

The GRTU suggested that the eco tax would come into force in January so that business people would have time to deplete their stocks while consumers would have more time to buy products at pre-eco tax prices.

The eco tax bill states that business people have to pay government the tax even on current stock.