Discussion about Budget 2014

“Deloitte, which was hired by the government, prepared a report and certified the debts for the infrastructure construction, which mounts up to 24.6 billion ALL. 12 billion have been included in this budget, almost half of it. It also includes 20 billion that have not been paid to the business through VAT reimbursement and the tax on profit, and also a 3 billion ALL of other current debts. 35 billion ALL have been taken in this budget, which will be directly financed by the international financing institutions, the World Bank and the International Monetary Fund”, declared Mimoza Dhembi, budget director.

“Debt was your piece de resistance, especially for business. You said once that it was 800 million EUR, another time that it was even 1 billion, and now that you hired Deloitte, which wasn’t necessary at all, you found that the debt was 390 million. You are taking a loan with high international interest rate to pay an internal debt that was without interests within our country”, declared the Democratic Party Parliament Member, Genc Ruli.

The Deputy Minister of Finances, Ervin Mete, declared that the categories that will profit from the tax package that focuses on the VAT of basic foods are the families in need.

The Democratic Party Parliament Member, Genc Ruli, declared that the only category that profits are the ones living on social welfare, while the rest of the Albanians, who are poor even if they work, due to the small incomes, do not profit.

Tax on businesses
 
The opposition accused the government of demagogy for the small business tax. Former Minister Ridvan Bode declared that the government is in fact increasing the tax on small business.

“The mere 75.000 who profit 75.000 ALL from the 25% reduced tax, which goes from 10% to 7.5%, will pay 200.000 ALL more with the residence tax and 150.000 more for the fuels”, Bode declared.

“For a 100 square meter shop, which is the biggest for the small businesses, the tax goes 20.000. Who pays it? Supermarkets. This is the concern. Your concerns are the large businesses, and those are the ones that you are representing. Large businesses are the only ones that can be burdened by the building tax, the one that is being represented here. The large business is the only one that will be burdened by the building tax”, declared the Chairman of the Commission of Economy, Erjon Brace.

The new law for the local taxes reduces the tax on profit from 10 to 7.5 for the small business, but doubles the tax on commercial buildings, even those that are owned by businesses, from 200 to 400 ALL for square meter.

“The implementation effect of the local taxes, especially for the part that has them in the revenues of the local government without the construction tax, will have a negative effect for about 2 billion ALL. They will pay 2 billion ALL less in the budget”, declared the Socialist Parliament Member, Anastas Angjeli.

“We are proposing to remove the tax at least for the small business, and then you can really say that you reduced taxes. We will make the calculations and you will see that the small business will pay even more”, declared the Democratic Party Parliament Member, Igli Cara.

Another increased tax is that of houses built before 1993, which goes from 15 ALL to 30 ALL per square meter.
 

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