The Federation has stated clearly to the government that, as has been the position of the Federation these past years, the FOI can not agree to the implementation of any form of additional tax. It strongly believes that taxation in Malta is too high, in fact it has been reported as close to the European average ratio to GDP, the average of which is in the region of 40 per cent, increased to this level by such high taxation countries as Scandinavia, France and Germany.

The FOI is not against the principle of developing a strategy of sustainable environmental policy. However, the Federation firmly believes that it is also the responsibility of the government to evaluate the repercussions that any new tax would have on the competitiveness and economic activity of the country.

Consequently, the Federation must stress that at no point did it give its official reactions to, or issue any comments on, the proposed scheme. The FOI will only issue its official reactions to this proposed Act following various consultations with all its members concerned.