SME Chamber

Eco Tax Development 1

As a result of the pressure and stand taken primarily
by GRTU on behalf of the enterprises, traders and retailers affected by the
imposition of the Eco-Contribution Act approved by Parliament on 27th July

Government has now accepted that:
1. No Eco-Tax will be levied
on existing stocks held by traders/producers.

2. The Eco-tax will not be
levied on all listed products once they leave customs.

3. No Eco-tax will
be levied on all listed items at customs on non-EU originating product and no
Eco-tax will be levied once non-EU-originating products leave customs.

The Eco-tax will be levied as follows:

4.1 On listed products once
the first VAT transaction is effected i.e. (a) either when trader or producer
sell to wholesalers or retailers, or (b) when traders or producers sell directly
to customers

4.2 Eco-tax is levied on products that are transacted out of
warehouse from traders or producers. Listed products already on sale at
retailers are not effected. Sales on the products to retailers prior to
effective date proceed as before.

5. GRTU had asked for postponement of
implementation till January 2005 so that current stocks could be depleted.
Government has now accepted that existing stocks will not be charged and new
imports/production will not be charged unless a first sales transaction is
effected. GRTU therefore now considers that the date of implementation is no
longer a major stumbling block. Government in fact intends to implement it as
from September 2004.

6. The payment of the Eco-tax will be made at the
end of every quarter and payment is effected together with VAT

7. The VAT department is the Authority that will administer the
Eco-Contribution Act.

8. The exact mechanism on how the tax is going to
operate is still under discussion. A Technical Commission is being set-up to
discuss the technical aspects of implementation. GRTU is insisting that the
Eco-Contribution is considered as a cost which is incorporated in the total
price of the product and not invoiced separately.

9. The Eco-tax will be
refundable only if approved schemes of collection of waste generated by the
listed items are in action. Discussions on these will proceed under the auspices
of the proposed Commission.

10. The terms of reference of the proposed
Commission will be published shortly in the Government Gazette.

11. The
Legal Notice that will qualify the Articles of the Eco-Contribution Act as they
apply to administration, collection of the contribution and other technical
aspects and official forms that will be used to implement the Act, will be
published shortly. In the meantime, the Act has been published and it is
available on the GRTU’s website.

GRTU members are advised to make the
necessary preparation and to pass on questions, advice or proposals to GRTU by
e-mail on and to watch the GRTU website for further

We need information on any waste recovery programme in
action or proposed. We thank you for your support and


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