Issue link: https://maltatoday.uberflip.com/i/1069175
NEWS 8 maltatoday | WEDNESDAY • 9 JANUARY 2019 I am often left bewildered at the lack of initiative shown by the PN and the PL through- out the years on environmen- tal matters. Malta is, to say it lightly, a slow mover. One very clear particular example of this is on climate change. Malta is the only country to consistently miss its effort sharing targets. Labour's so- lution is to incentivise cars and expand roads, which ob- viously will not work as emis- sions need to be reduced dras- tically. As the only sound opposi- tion, Alternattiva Demokra- tika Żgħażagħ along with a number of environmental activists, took action and set up a protest with a number of pledges for the government to follow. This was no lone effort for AD, as the party has long proposed feasible measures to adequately reduce Malta's emissions. Two years ago the party even set up a Zero Carbon Policy document, containing measures aimed at achieving a zero carbon fu- ture by 2050 that are in line with the European Union's long-term vision. Unfortunately, as usu- ally happens, such protests against the government are seen as political opportuni- ties for those who have little interest in climate change, or the environment for that mat- ter. Step up the Nationalist Party, with its members car- rying slogans and taking self- ies, possibly with the hashtag #attivisti or what not... these 'activists' always seem to be ready to protest, as long as it's against Labour of course. Just so that nobody forgets, let's recap some of the PN's recent blunders on climate change. This party spent 25 years in government push- ing for cars as the only mode of transportation, they chose heavy fuel oil instead of LNG, they underfunded the trans- port system, and then bashed Labour for increasing subsi- dies on public transport. To make matters worse, both PN and PL are in favour of hav- ing a tunnel for cars between Malta and Gozo (I cannot tell what PD's Marlene Far- rugia's position is on this since her discourse on this is never clear!). This tunnel will of course create more traf- fic congestion and pollution in Northern Malta and Gozo. While there are those who envision a zero carbon Malta, PNPL promote more pollu- tion, disease and destruction. It doesn't quite end there of course. Their dismal record on introducing renewable energy speaks for itself, and their in- sistence on keeping the cost of fuel as low as possible, means that people have no incentive to reduce their consumption, and subsequently their pol- lution. Now before you come and tell me about people's diminishing spending power, don't worry I understand and I agree with you. However, we can increase people's spend- ing power by tackling other costs, as opposed to incentiv- ising people to pollute the air they breathe. Alternattiva Demokratika has long been the pioneer, and only consistent voice on climate change. If you care about your future, and your children's future, then place your trust in AD, and not in those who are only interested in getting back into power for power's sake. Remember, as the old say- ing goes, actions speak louder than words, and in this case, actions speak louder than selfies! Vote for the real deal, not opportunistic posers. Luke Caruana Luke Caruana is AD candidate for Mellieha local council luke.caruana@alternattiva.org.mt Establishment politics and climate change Such protests against the government are seen as political opportunities for those who have little interest in climate change, or the environment for that matter. Luke Caruana MATTHEW VELLA THE Labour MEP Alfred Sant has voted against the in- troduction of a harmonised digital tax on tech giants like Google, Apple, Facebook, and Amazon (GAFA) warn- ing of the impending move towards a harmonised tax structure for all EU member states. "While this report sup- ports the introduction of such a tax, it does so as part of a strategy by which on a European scale, we move towards a harmonisation of taxation, not least by putting in place the tools that would make such harmonisation easily possible… I doubt whether taxation of sales of digital business need be con- templated on a European, as contrasted to a national scale." Members of the European Parliament adopted two opinions on proposals for Council directives for cor- porate taxes to be levied on companies with a significant digital presence, and a Digi- tal Services Tax (DST), by an overwhelming majority. MEPs agreed that the sup- ply of "content on a digi- tal interface such as video, audio, games, or text using a digital interface", regard- less of whether the content is owned by that entity or if it has acquired the rights to distribute it, should be taxed – for example, online plat- forms like Netflix. EPs underlined that the DST is a temporary meas- ure. Adopting the Signifi- cant Digital Presence, the Common Corporate Con- solidated Tax Base or similar rules reached at the OECD or at UN level would be per- manent solutions. Alfred Sant voted against the DST resolution, calling it a "matter of non-negotiable principle". "Taxation should remain part of each EU member state's sovereignty… it is right that digital business, especially that conducted by the GAFA be taxed on the same lines as businesses in other sectors of economic activity in the place where they conduct business. Giv- en the nature of digital ac- tivity, where value is being added, where costs are being assumed and where profits are being made constitute matters that lack the clarity found in other economic ac- tivities. "This makes it possible for GAFA and others to fudge their income statements so as to avoid having to pay taxes due on their profits. In these circumstances it is legitimate to introduce a tax on their sales, where these occur, to curtail and eliminate such tax avoidance – the four most powerful American technology com- panies." In the DST report, ap- proved in December with 451 votes in favour, 69 votes against, 64 abstentions, MEPs agreed to reduce the minimum threshold above which a company's revenues are liable to be taxed. The rules would apply to any entity generating revenues within the EU of more than €40 million during the rel- evant financial year. The European Commission had proposed that this should be €50 million. The rapporteur on the Digital Services Tax, Dutch socialist Paul Tang, said: "Both the European Parlia- ment and the European peo- ple want tech giants to pay their taxes. That is why we voted for a more ambitious digital service tax, also tax- ing revenues from online streaming services. We are talking about basic fairness, where everyone pays their fair share". The resolutions are only consultative: it will be up to the Council to decide by unanimity on the final con- tent of the rules. The Parlia- ment is pushing for an ap- proval before the end of its mandate in April 2019. In July 2013, EU ministers agreed on the need to estab- lish a common corporate tax base. The European Com- mission then split its previ- ous 2011 proposal into two directives: a directive estab- lishing a common corporate tax base (CCTB), and a di- rective on a common con- solidated corporate tax base (CCCTB). Both draft direc- tives were tabled in October 2016 and are still awaiting Council's agreement. In its resolutions, the European Parliament strongly sup- ported this major reform of corporate taxation and in- troduced the notion of "digi- tal presence" that would en- able member states to tax digital companies. In March 2018, the Euro- pean Commission presented two distinct legislative pro- posals on a fairer taxation of digital activities in the EU. The first proposal (Corpo- rate taxation of a significant digital presence), presented as the preferred solution, aims to reform corporate tax rules, so that profits are registered and taxed where businesses interact with us- ers through digital channels. The second proposal (Digital Services Tax) is an interim tax which covers the main digital activities that cur- rently escape tax altogether in the EU. Tax on digital giants a prelude to dreaded harmonisation, Sant warns