Berisha: We will not raise taxes

27/06/2011 16:00

The government will change its policy, in order to avoid tax increases
and to raise pensions, regardless the fact that the International
Monetary Fund suggested some days ago to raise taxes and freeze the
actions for raising wages and pensions.

This stance of the Albanian government was confirmed in the Democratic Party parliamentary group meeting, by the Albanian Prime Minister Sali Berisha, who declared that he had attentively heard the suggestions of the International Monetary Fund, but they will not be implemented.

According to Berisha, the main reason is that Albania has proved in these years that its economic model of low taxes; of the smallest administration in the region; of great infrastructure investments and privatization of state owned properties, has resulted with an economic growth even in the time when the world was swept by the most severe financial crisis; has resulted with the opening of new businesses and by creating more jobs; by doubling the revenues of the budget in only four years.

“I am not saying that Albania is a boulevard full of flowers. I understand some IMF requests, but we cannot raise taxes. We will raise our performance. We believe that by consolidating the fiscal discipline, and by reducing taxes, we create more jobs and economic growth. IMF asked tax increases not without a reason. We must be realists, but our model is working. We need a bloom in the area of new businesses. We need these businesses to be successful; therefore we will remain the country with the lowest taxes in Europe. IMF showed their concern for wage increases. This concern is understandable, but the matter is that by increasing wages, we invest in human resources, and we will continue with this plan. Not only because it is an electoral promise, but I believe that the most important investment is that which is made for the men”, Berisha declared.

For showing in a more specific way how the tax decrease has affected the economic growth, although taxes will not be raised, as IMF had suggested, Berisha used official statistical data for the five months of this ear, when 20 new processing enterprises were opened. In the past years there were only ten in total.

“Inward processing companies are the ones that create most jobs. Why was the number of these companies doubled? Because we removed the taxes for imported goods and the ones used for domestic production. The first impression is that our low-tax economy is going against the trend. No, this is a successful model. We are really losing 10 or 15 million Euros, but only to increase exports and employment. We are gaining more than we are losing”, Berisha added.

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