In a statement issued yesterday, the chamber said that despite what has been said about agreements made with the social partners on the introduction of the eco-tax, the GRTU is not involved in any sort of agreement regarding this tax.

The GRTU made its objections to the government on behalf of importers of domestic and industrial equipment, but has not received any reply, the chamber continued.

The implementation of the tax before January 2005 would be unjust and harsh on the importer as well as the consumer. Hundreds of workers will be out of work if the eco-tax is introduced without a reduction in existing taxes, said the GRTU. This is because entrepreneurs are already over-taxed and would not be able to cope with any additional financial burdens without reducing their staff complement.

The government did not consult with the social partners when drawing up this law. It also failed to study the economic impact it would have on trade and the fact that it would deflate the Maltese market even further, since traders affected by it were not given time to prepare for the tax.

The GRTU claimed the government is ignoring the procedures it is supposed to follow now that Malta is an EU member. The eco-tax is increasing the cost of living while narrowing economic activity.

The GRTU stressed that imposing the tax on existing stocks is unfair and set a bad precedent, in that the government could impose new taxes on products already on the market.

If the government continues along this road and implements the tax without consulting the social partners, the process towards a social pact will be seriously threatened, the GRTU

continued.

The chamber informed the government of this along with the other social partners during last Monday’s Malta Council for Economic and Social Development meeting when the process towards negotiations for a social pact began.

The government cannot speak of a social pact and then impose a tax that no one agrees with, the GRTU concluded.