Government expert against lower taxes
19/09/2011 16:10
The Washington Agreement Must Be Reactivated! 06/01 19:04
The Democratic Party MP, Florjan Mima, sees the Socialist proposition
for removing taxes on basic food products as a populist movement for electoral
purposes. Being one of the best experts of the ruling party for fiscal
policies, Mima defended the theory that by increasing consume taxes, the
ones who benefit are not the poor, but another class.
“The ones who really benefit are the rich class, who consume most of the food products in question”, Mima declared.
Another argument that according to him plays against the tax removal on food products is related with the way how the market will transmit the tax removal to the consumers.
“If we decrease VAT, there will be no substantial decrease in the price, because the traders work with the margins of the fixed profit. The Albanian business needs a longer time to be educated with a higher profit margins, than the margins that the Banks benefit from the population’s savings”, Mima added.
The former Deputy Minister of Finances and one of the leaders for the fiscal reforms in the first mandate of the Democratic Party, Mima says that the escalation of the VAT would increase tax evasion and would cause damages to the state.
“If the milk for children would be part of the low tax escalation, even the milk that will be used for ice cream or that is used by everyone will be declared as milk for children”, Mima declared.
Top Channel
