16th July 2004

Eco taxes will be given a bad name

While Friends of the Earth Malta welcomes the idea of eco-taxation, if government pushes ahead with is plans to introduce eco-taxes at flat rates it will give a bad name to Green taxation.

While FoE Malta has been pushing for eco-taxes for years, the system being contemplated does not reflect what an eco-tax system should be.
Green taxes should aim to encourage the purchase of environmentally friendly products and discourage those products which do damage to the environment. What the government on the other hand is proposing seems to be aimed merely at revenue raising.
FoE Malta calls for proper eco-taxes that will increase the price - by the amount of the tax – of polluting products and encourage people to buy others that do not damage the environment.

The government should introduce fiscal measures that penalise one way packaging but encourage two-way. Air conditioners should be penalised, with a higher rate for the most energy consuming, while the sale of solar panels should be assisted. If taxes are also to be raised on white goods such as fridges and ovens they should be staggered so that white goods that least damage the environment carry no tax.
There should always be one type product in a range that will be tax free, leaving the consumer the choice to choose the most environment friendly alternative.
The aim of eco-taxation is to influence consumers to make environmentally friendly choices and that should be reflected in the government's proposal. Beyond that revenue from eco-taxation should be directed towards funds that improve the environment and not seen merely as part of normal government revenue.

The government will do the biggest disservice to Green ideas if it persists in such folly. FoE Malta agrees with the FOI and the GRTU that the tax must discriminate between different products.
FoE Malta is also extremely upset that civil society including environmental NGOs have been left out of the discussion process related to eco-taxation. The relevant ministries are showing a lack on sensitivity by not inviting environmental NGOs to the discussion table.