IMF urges Albanian government to pay debt to private sector accumulated by VAT reimbursement

03/04/2019 20:00

The International monetary Fund asked the Albanian government to pay its obligations to private businesses the soonest possible.

IMF notes that the unpaid debts through the VAT reimbursement have increased once again this year, going up to 120 million EUR.

IMF reiterated its critics regarding the government’s decision to include the small business in the VAT system, adding that this measure has increased costs without really bringing revenues to the budget.

However, despite these negative developments, IMF values the tax administration for improving the fiscal yield in the past three years.

However, the IMF says that these achievements are at risk by the creation of a smaller fiscal base, and especially by the favors that the government has made to tourism and pharmaceutical producers.

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