Malta Introduces Eco-Tax

by Robert Lee, Tax-News.com, London

01 September 2004

The Maltese government and the country's General Retailers and Traders Union (GRTU) have reached an agreement over the introduction of the controversial new eco-tax which comes into force today.

Initially, the authorities had intended to apply the levy, which is to be imposed on a range of goods that have the potential to pollute the environment, on stock already held by traders and producers as well as on newly manufactured products.

However, following an extended consultation period, the government has acceded to the GRTU's request to impose the tax only on products sold from warehouses to traders after September 1.

Speaking to the Malta Business Weekly, the Union's director-general, Vince Farrugia explained that:

"This was a fundamental principle because it would have been a first - no Maltese government has ever taxed products already in circulation." He went on to add that:

"We would not have accepted it and we would have been prepared to fight it all the way."

He additionally explained to the newspaper that the eco-tax will only be levied once, when the first transaction upon which VAT is payable takes place. The payment of the new tax will take place at the end of each quarter.

Recommended