Tax for energy drinks was removed by government after intensive lobbying
16/12/2017 08:00
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The excise of energy drinks was removed through an unusual procedure. It was not part of the fiscal package coming from the Ministry of Finances, but it was proposed by the Socialist MP, Ervin Bushati.
On November 27th of this year, Bushati said: “Considering the discussions we had three years ago, regarding our concern on energy drinks, we can now see that increasing its excise has not reduced the usage. I proposed to remove this law”.
This is not the first time that the government tries to remove excise on energy drinks. In 2014, the Ministry of Finances, led by Shkelqim Cani, tries to do the same thing. But the initiative was rejected in Parliament and opposed by the MPs of the majority themselves.
However, the stance of the majority was different this time. Sources from the Socialist group say that the reason for this decision was dictated by the lobbying of energy drink companies.
This decision has many financial consequences, since the government will give away 2.2 million EUR of taxes a year. But who profits the most?
Albania has the highest consumption of energy drinks in the region, with 8500 tons a year.
Top Channel has published confidential data of 2013, which shows that only three companies benefit 1.7 million EUR from this 2.2 million: “Arstl group, BM SHpk and Albanian Distribution and Development.
The first two companies have the exclusivity for distributing B52, one the Dutch version and the other the Macedonian one. The third company is the exclusive importer of Red Bull, which has 45% of the market share, or 60 million EUR. This company has lobbied the most for removing this tax, which has now been removed by the government.
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