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MT 17 April 2016

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maltatoday, SUNDAY, 17 APRIL 2016 9 News C M Y CM MY CY CMY K maltatoday coke euro 18x24.5ver3.pdf 1 14/04/2016 11:52:47 MATTHEW VELLA A much vaunted budget measure that was intended at addressing the environmental impact of fish farms in Maltese waters, was never imple- mented after lobbyists for the multi- million business weighed in. In its Budget 2015, the govern- ment had announced the introduc- tion of a levy of 10c per kilogramme of feed used in fish farms to address the industry's environmental im- pact. Finance Minister Edward Scicluna had then said that the fish farming industry was felt to be "a strain and perceived as not giving its due", es- pecially due to the impact of feed used in fish farms. "The government believes this sec- tor must give a larger contribution in line with the polluter pays princi- ple. Those who pollute must pay for it," Scicluna had said. But the plans for that excise, which was to raise €2 million, were never carried out after a government volte-face in the wake of protesta- tions from the industry. In fact it was the only tax not imple- mented from Budget 2015. Another much criticised excise duty on Mal- tese wine producers, which angered local producers, was introduced at a handsome €200 on every 1,000 litres – double the fiscal weight of the pro- posed fish feed tax. Malta's aquaculture industry is jeal- ously guarded by the businesses who run the game: in 2013 their gross output was of over €98 million, and increased their fish volumes by 30% to a total of 9,000 tonnes. Fish farms however generate con- troversy over intensive tuna ranch- ing methods, and the environmen- tal effects of farming: in the past the seaside town of Birzebbugia blamed fish farms for a greasy substance seen floating off Delimara and Birzebbu- ga, drawing swimmers' complaints. The local council had insisted that the substance was from the remains of feed used by fish farms. Dry fish feeds contain fish meal and fish oil. While fish farms got off the hook where it comes to excise taxes, Mal- ta's viticulture industry had to swal- low its own bitter pill. The excise tax on wine was pro- tested by winemakers, who claimed it put further pressure on an already fragile local industry. Viticulturist and Marsovin CEO Jeremy Cassar had said the future of his 100-year old family business may be in jeop- ardy thanks to the new 15c-per- bottle tax on wine which in 2015 generated €1.9 million for the public coffers. "It puts Maltese wines at a disad- vantage vis-a-vis foreign imports," Cassar had said when the tax was introduced, with no detailed infor- mation for winemakers before the announcement was made. "The only other European country that im- poses a tax on wine is France, and the amount is minimal, around 3c." "We have invested in refining the grapes, sent people abroad to study viticulture, employ hundreds of lo- cals and preserve a unique part of Maltese culture. Our vineyards at- tract tourists and we supply practi- cally every restaurant on the island. Why is the Maltese wine sector being treated so badly?" Cassar asked at the time. Fish farm lobby gets its way as feed tax left unimplemented Fish-farmers off the hook on €2 million feed tax, while winemakers pay unpopular excise duty

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