The party spokesman on finance, tourism and industry, Edward Fenech said: “We welcome the fact that government has acted on a commitment to introduce pollution taxes as expressed in last year’s budget. Eco-taxes have been advocated by the European Greens for many years and are now becoming a fiscal and economic reality in a number of EU countries.

“While we consider eco-taxes to be one of the fairest forms of raising government revenue, we are concerned that government is not committed to channelling the revenue ensuing from these taxes either directly into environment-related projects or into labour-creating incentives. Eco-tax revenue must be specifically identified, quantified and invested in projects that the taxpayer can identify with. The government must always remain accountable not only for the taxes it collects, but more importantly for how this revenue is spent. This will also serve to instill a greater sense of fiscal morality in the country.”

AD chairman Harry Vassallo referred to the PN’s scare-mongering campaign before the European elections in which the Greens were attacked for advocating eco-taxation. “It is ironic that during the campaign for the European Parliament election, just a few weeks ago, it was the PN government that was accusing AD of advocating the introduction of eco-taxes. Now the government, who up to a month ago was using eco-taxes as a political weapon against AD, is moving a bill to introduce eco-taxes itself. Once again AD has been vindicated –

another green proposal has become a reality. Alternattiva Demokratika supports the introduction of eco-taxes, however as we expressed during the campaign for EP elections, we expect eco-taxes to gradually act as a substitute for other taxes on labour and/or enterprise.

“For example, government can target the eco-tax revenue into fiscal incentives for SMEs employing/re-training people who are long-term

unemployed. Whilst taxing pollution, government must reward and support enterprise,” Dr Vassallo concluded.