Nature Trust (Malta) urges the national authorities to reconsider the way eco tax is collected and utilised. The NGO feels that if the system is improved and made more transparent, taxpayers would understand ecotax more and therefore feel the urge to be proactive in shouldering the fiscal burden being imposed.
Today, the collection and allocation process employed with regard to ecotax is identical to that of all other taxes which are basically revenue-raising in aim. As in such other taxes, funds collected go into the main tax account of the country to be utilised by Government for whatever reason it may deem fit. NTM is therefore urging the authorities to put their money where their mouth is and create an environment fund wherein all eco tax proceeds collected will be deposited. Such a fund can then be used for a variety of environmental projects and activities, as well as to enable capacity building among environmental NGOs, a faculty which is sorely needed if Government truly intends to count on the aid of such NGOs as partners to help foster environment protection.. Only through concrete fiscal assistance, and not through words of praise alone, can NGOs become even more professional in their work and be of better service to the community.
NTM feels that, through an environment fund, the government could then invest more in, for example, law enforcement resources, which are currently sorely lacking. Funds could also be allocated to nature conservation projects such as the conservation of local Natura 2000 sites, ecologically important sites and marine protected areas all of which, given the right attention, could greatly boost our tourism sector especially in low-season months. The fund should also contribute to the improvement of our landfills and, wherever possible, finance education campaigns to reduce and reuse.
NTM feels that eco taxes should not be applied in a level manner on all items but a clear distinction between those products which are very harmful to the environment and those that are environment-friendly should be made and be seen to be made. Typical examples include the following: refillable plastic bottles are today charged VAT at 18%, while small plastic water bottles carry no tax when it is these small bottles that are creating a waste stream; white good having environment friendly features have the same eco tax rate as those that are non-environment-friendly – here it is felt that environment-friendly goods should have a lower eco tax rate, which would only be needed for and would adequately cover their end-of-life, since these appliances usually do not contain or emit toxic gases or materials.
While NTM fully supports Government’s decision to tackle the problem of plastic bags, even here a distinction should be made in respect of biodegradable plastic bags; these should have a much lower ecotax then non-biodegradable bags, which are by far the more harmful to the environment.
In conclusion, NTM echoes the principle endorsed by administrations abroad that an eco tax can only qualify as such if its overriding aim is clearly that of safeguarding the environment and not of raising more revenue for Government’s coffers. The NGO feels that the adoption of the above measures, accompanied by an annual report of how eco tax-derived funds are being utilised, would help enlist definite public support for further environmental fiscal reform.
Nature Trust (Malta)