Business: No tax increase

“In a time of crisis, economy and private enterprises should be oriented towards economic growth. Taxes don’t bring economic growth, but economic growth brings a higher tax”, declared Luan Bregasi, from business Albania.

Alban Zusi, who leads the Business Cluster Centre says that money produce more welfare and employment when are managed by the private sector than when it is administered by state bureaucrats.

“A business investment usually returns profits in two or three years. Big businesses might take seven years, while public investments start being profitable after 10 years or even more”, Zusi declared.

The fiscal burden debate returned after IMF recommended the government to increase taxes in order to stop the debt increase and support economy with investments. Businessmen say this is not the only way, but there are other efficient solutions such as good management of public finances.

“Tax administration could be a better way to create revenues that would increase investment opportunities. This means that the state administration performance will increase to secure a better distribution of the fiscal burden and a better administration for the collection of this tax level that we have today”, Bregasi declared.

A good management doesn’t involve only collecting taxes, but also to orient government expenses. The government structures, according to the business, are not helping the economy.

“An infrastructural work employs 50 or 200 people, while the same amount of money invested in other sectors could generate the same value through a co-financing scheme and open new jobs. But chances are that this money will stay inside the country and open 10 times more jobs”, Zusi declared.

Government finances have deteriorated since 2009. By the end of the last year, the public debt reached 61.9%, while the government has turned in the most problematic debtor in the country, with 200 million EUR of unpaid money to business.

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