Need for review of plastic bags initiatives

Here are a few negative issues arising out of what is being suggested in the leaflet titled New Initiatives Regarding Plastic Bags issued by the VAT Department just over a week ago.

1. The principle of biodegradability/degradability is being completely ignored and forgotten just three years after being introduced, hence, all related advantages for society will be lost forever.

2. Loss of revenue from eco-tax + VAT currently payable on certified degradable polyethylene carrier bags, particularly those produced locally in accordance with the 2005 Eco-Tax Act.

3. Higher flexible-packaging overheads for retailers which will eventually be shouldered by the consumer, especially now when the economic situation is in such dire straits.

It is mainly the supermarkets that are in favour of charging the customer for plastic bags. The majority of all other retail outlets such as jewellery, fashionwear, footwear, giftware shops etc. would rather opt for a more expensive, less convenient and less environment-friendly means of shopping bags such as paper, than endure the embarrassment of charging the customer for a degradable plastic carrier bag.

4. Old stocks cannot be discarded. This will cause unnecessary cash-flow problems and wasted financial resources. The local market consists of hundreds, not millions, of consumers as in other large European countries. A minimum quantity of printed bags would last a normal retail outlet in Malta between 18 and 24 months. Therefore a similar phasing-out/in period of at least 24 months would be fair common sense and should be implemented instead.

5. Besides the actual cost of these plastic carrier bags, eco-tax and VAT have already been paid on existing stocks, particularly on those of local origin and in line with the 2005 Eco-Tax Act which has not yet been superseded and therefore remains the only official regulatory code in this regard.

The idea of refunding these taxes plus interest would prove to be time-consuming, costly and bureaucratic, hence the option of a 24-month transitional period should be considered more favourably.

6. The size of the suggested certification details to be printed on plastic bags is so large that no adequate space is left for creative and artistic advertising. Is it so imperative that this information is printed on both sides of the bag and/or to occupy such a large surface area?

7. Job redundancy will be self-inflicted on the local manufacturing industry that produces such bio/degradable plastic bags. This fact should be considered in the gloomy scenario of the current global recession where other factories, both local and foreign, are being compelled by necessity to shed their workforces or close down.

Let us hope that logic and sensibility will eventually prevail.