The FOI reiterated its opinions about the economic implications of the eco-contribution and about its effects on the country’s competitiveness. The federation’s position, in recent years, has been very consistent and clear: it is against any form of additional tax because taxation in Malta is already too high.

If this eco-contribution turns out to be a new tax on the general consumer it will have a consequential increase in the cost of living, an effect on statutory wage increases and a reduction in the spending power of the consumer, the FOI said

The country is already pricing itself out of the market for exports of both goods and services through self-induced inflation caused by high taxation and wage increases that are not productivity-related. All the social

partners should therefore seriously consider the implications of the eco-

contribution in the context of the country’s competitiveness and should work together to preserve this, if the economy is to make any progress.

The FOI has suggested to the government the setting up of a technical commission. Its function would be to assess the economic implications of the eco-contribution, to assess waste packaging recovery schemes and generally to keep down costs for enterprise and consumers alike, whilst minimising bureaucracy in the implementation of the law. The FOI therefore urges the government to appoint the commission without further delay. While it understands the government’s social obligations to safeguard the environment by making polluters pay, the FOI insists that a balance be found for the proposed eco-contribution, through compensatory measures to both manufacturing and service industries.

Only this type of approach will send a clear message to enterprises and consumers alike that this is not just another excuse for the government to increase taxation, but a genuine effort towards solving the country’s environment problems. These conditions have so far not been satisfied. Therefore the FOI must again remind the government that the main issues relating to increased taxation and industry’s competitiveness have to be seriously addressed by them.