Among the rates to be introduced are a 5c tax on wine, alcohol, cosmetics and toiletries, a 10c tariff per battery and on non-edible oil per litre and a Lm12 rate on cooling and refrigerating equipment. The maximum tariff is a Lm15 rate on televisions and monitors over 28 inches.

The charges were announced yesterday by Prime Minister Lawrence Gonzi during a press conference held with Rural Affairs and Environment Minister George Pullicino and Parliamentary Secretary in the Finance Ministry Tonio Fenech.

The eco-tax was recently placed on Parliament’s agenda for discussion, a fact that prompted the opposition from the Chamber of Small and Medium Enterprises (GRTU) on Monday.

The tax is part of the government’s waste management strategy, the Prime Minister said. The idea is to encourage consumers to choose those products that have the least impact on the environment while at the same time moving on with sustainable waste management facilities.

The measure is not intended exclusively as a revenue generation initiative but rather to encourage an environmental awareness among consumers based on the “polluter pays” principle, Dr Gonzi said.

The tax still has to be discussed in Parliament. Mr Pullicino however gave the rates of the proposed law that earmarks a number of products, selected for their impact on the environment. The products, which were mentioned in the last budget speech, include containers – beverage bottles such as cans and bottles and toiletries and perfume containers – tyres, batteries, waste oils and white goods such as air-conditioners, fridges and water heaters.

Water bottles and cans for non-alcoholic beverages will carry a 1c tariff per item while containers of alcoholic beverages will have a 5c tariff. The same applies for toiletries and cosmetics.

Tyres for motor and commercial vehicles will have a Lm2 tariff while batteries will carry a 10c per battery rate. Accumulators such as car batteries will have a 70c eco-tax.

Cooling and refrigerating equipment carries a Lm12 tariff, Lm3 is payable on water heaters while television sets and monitors bigger than 28 inches will have a Lm15 tariff. The smaller sets and monitors carry a Lm5 tariff. Cookers and appliances used for washing will have a Lm10 charge. A Lm2.50 tax will be charged on telecommunications equipment.

Asked by The Malta Independent whether the government had forecasts of the tax-generated funds, Mr Pullicino mentioned that it is estimated that it would reach Lm4 million per year. The figure coincides approximately with the expenditure for Wasteserv, the company responsible for waste management.

A waste collection scheme is also being planned. The scheme will enable importers or producers whose items are being disposed of to cut on their eco-tax by implementing a collection scheme.

Dr Gonzi said that in this way the private sector can give its contribution towards waste management and use the collection scheme as a competitive incentive for customers at the same time. A firm selling white goods, for example, can give customers refunds for their old fridge when buying the new one, because they themselves would save from their eco-tax contribution.

The scheme was discussed with a number of industry representatives from the bottling sector earlier this year, Dr Gonzi said. No conclusive scheme was arrived at so the government is now working on its own proposals. The system will give the private sector room for participation at different levels, he said.

The tax will be collected through the VAT department from private enterprises. It was decided to have the tax collected in this way so as not to burden entrepreneurs with new bureaucratic procedures, Mr Fenech explained. All they have to do is add a declaration of the items sold and the respective eco-tax due to their VAT return, making use of the same self-assessment system.

Mr Fenech also pointed out that taxation at point of entry was also avoided so as not to revert to customs procedures similar to those before 1 May.

The bill is expected to be discussed and passed before the summer recess, Dr Gonzi said, especially because a commission set up to evaluate its effects on the economy should present its report by October.

The set up of the commission was announced on Monday following a meeting the Rural Affairs and Environment Ministry had with the GRTU. In this connection, the government announced that the commission will include representatives from the GRTU, the Federation of Industry and the Chamber of Commerce as well as government representatives.

Eco-contribution rates Per unit/litre

Lm

Containers

(whether made of plastic, glass or metal)

Beverage bottles and cans

• Non-alcoholic beverages and beer 0.01

• Wine and other alcoholic beverages 0.05

Toiletries and cosmetics 0.05

Tyres

Tyres for motor and commercial vehicles 2.00

Batteries and accumulators

Batteries (whether cylindrical or button) 0.10

Accumulators 0.70

Waste oils

Non-edible oil (in litres) 0.10

Oil filters 0.05

White goods

Cooling and refrigerating equipment 12.00

Water heaters 3.00

TVs and monitors 5.00/15.00

Telecommunications equipment 2.50

Appliances used for washing and cooking 10.00