Prices of several goods across the Maltese market are expected to rise as the full impact of a new shipping emissions ‘tax’ – part of the European Green Deal – kicks in.
The EU’s Emission Trading System (ETS) was launched to cover the costs of CO2 emissions from all large ships entering EU ports. Initially staggered over a few years, it was fully implemented on 1st January.
In an interview with WhosWho.mt, Malta’s Association of Tractor and Trailer Operators (ATTO) chairman Joseph Bugeja didn’t mince his words about how these extra costs will ultimately trickle down to consumers.
“These taxes will have to be recovered by the vessel, paid by us [trailer operators] and ultimately covered by the end consumer,” he said.
“We should expect to see higher prices on everything that is imported to Malta. We import around 3.2 million cubic metres of cargo a year, which is a tremendous number.”
According to ATTO’s calculations, a single round trip between the Port of Genoa and Malta now carries a €734 charge in ETS alone, over and above freight, loading and discharging costs. This should translate into an additional annual cost of approximately €16.5 million to the European Union.
“It’s quite a hefty amount,” Mr Bugeja stated.
The ATTO chairman said this ‘tax’ is particularly unfair on Malta, as its island status leaves it with no alternative to sea transport for importing goods.
A second level of unfairness lies in the fact that ships are taxed for both legs of the journey. Since Malta imports far more than it exports, 60 per cent of its trailers are shipped back to Genoa empty, which essentially means they are penalised simply for starting another trade journey.
He said that while Malta will continue taking initiatives to improve its competitiveness, a policy like this will undoubtedly come as a blow.
“Why are Maltese-European citizens being penalised for living on an island?” Mr Bugeja questioned. “This is what it boils down to. We’re not against environmental issues, we would all like to live in a better environment and our members have invested in state-of-the-art, eco-friendly trailers, but I don’t think this is fair.”
“The EU cannot keep adopting a one-size-fits-all model. Ursula von Der Leyen had said that island nations must be taken into consideration but we haven’t seen that happen in reality.”
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