Government disappointed with Crown Agents for tax revenues increase

In a letter of understanding they sent to the International Monetary Fund, the government lets the fund know that the work with the foreign adviser will continue. But, as the government says, they were expecting a higher growth that what has been realized so far. According to the government, the problem lays in the non-consistent implementation of the evaluation rules and procedures, and it is also due to informality.

Official data from the Ministry of Finances show that the money collected last year by the customs was 5.5 billion ALL, or 3.5% lower than the plan foreseen by the budget.

The excise had the weakest performance, the tax on which the government was hoping for more progress after the agreement with Crown Agents.

The government signed a 8 million EUR agreement which would raise the GDP with 1%.

The data show that compared to 2013, the customs revenues increased with 10.9 billion ALL, 0.8% of the GDP. However, it doesn’t come from the improvements in the administration, but mostly from the fight against the tax evasion.

Some of it is also a result of a direct raise of taxes fo citizens, such as the excise for cigarettes, which alone increased the tax burden of 2014 with 3.5 billion ALL.

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