Tax-free biodegradable plastic bags 'ruled out'

An exemption of eco tax on biodegradable plastic bags was ruled out because, although it is the more environment-friendly option, the "visual impact is the same", Resources and Rural Affairs Minister George Pullicino said yesterday.

Addressing a press conference in which he announced that shopkeepers had until May 1 to get rid of their stocks, Mr Pullicino said the "aesthetic effect" of biodegradable bags and conventional plastic bags was similar.

"Our aim must eradicate the use of plastic bags once and for all. Differentiating between one type and the other would not help reach this aim," he said.

Rebutting the opposition's argument for a total ban, he said this did not make sense because Malta formed part of the European market and anything available in other EU countries could not be banned only in Malta.

Asked whether he agreed with imposing a steeper eco tax on conventional plastic bags and a cheaper charge on biodegradable bags, Mr Pullicino said consumers would be better off investing in alternative carrier bags, such as cloth bags.

"We simply don't want them anymore," he said emphatically.

The new €0.15 tax announced in the last budget will start being charged tomorrow in a bid to reduce the 40 million plastic bags the Maltese use each year.

The move was met with stiff criticism, mainly from environmentalists, on the basis that it does not differentiate between conventional bags and the more environment-friendly option.

Shopkeepers' concerns on the thousands of plastic bags they have in stock were addressed following consultation after the tax was announced. To make their orders viable, most retailers ordered consignments of between 10,000 and 20,000 bags. These bags can continue to be used until the end of April but retailers still have to charge the consumer a minimum of €0.15 on each bag and punch in the plastic bags, one by one, on the fiscal receipt.

It remains unclear how much the consumer will have to pay because, along with the €0.15 tax, the public has to pay VAT and the cost of the bag, which can vary from shop to shop.

From May 1, whoever produces or imports plastic carrier bags will have to print the name and address of the person registered under the Eco-Contribution Act, the registration number and the batch number of the consignment on each side of the bag.

The font size, which originally could not be smaller than two centimetres, has been halved, accepting criticism that this font size would use up 75 per cent of the bag's printable area, leaving little space for advertising.

If shopkeepers still have stock on May 1, they have two weeks to return the plastic bags to the government, which will refund the amount they had paid in eco tax on those bags against official receipts. The cost of the bag will not be reimbursed and the government will destroy the stocks.

The Chamber of Small and Medium Enterprise - GRTU was one of the system's major critics but it is now four-square behind the government after its concerns were addressed. GRTU director general Vince Farrugia said such a measure would mean "plastic bags will die out".

Mr Farrugia said retailers did not want to distribute plastic bags for free because this cost them €3.5 million a year between them. He said 55 per cent of plastic bags used in Malta were distributed by supermarkets, grocers and outlets from where the people buy daily items.

"We don't agree with a differentiation between biodegradable and conventional plastic bags because if bags are cheap retailers will be expected to continue distributing them for free and this is what we don't want," Mr Farrugia said.

He wanted to drive home the point that the GRTU agreed with the measure to eradicate plastic bags not just because of the environmental aspect but also because this would cut unnecessary costs for retailers. Mr Pullicino insisted that the 2004 eco tax regime had not failed because of lack of enforcement but because people were witty and found loopholes in the law.

He claimed that retailers still had large stocks because manufacturers and importers of plastic bags convinced them to purchase more stock. Asked to name such companies, Mr Pullicino replied it was the media's role to name and shame and not the minister's.