Income tax removal

28/03/2013 19:45

The government draft-law for removing income tax for salaries under 30.000 spurred strong debates in the Albanian Parliament.

The opposition reiterated their proposition for the progressive tax, which, according to them, is more honest and would lower taxes for 96% of the employed people.

“Our proposition returns to the Albanians 65 million EUR annually. We challenge you to vote it. It is a proposition that will lower taxes with 5-7 times for nurses, teachers, and 3 times for police officers”, declared Socialist MP, Arben Ahmetaj.

Erjon Brace added that the flat tax has created large injustices in the market. He took as example the Prime Minsiter’s salary. “The PM should pay 31.000 ALL as taxes. Now he pays 24.000 ALL. His net salary is 86% of his gross pay, while for the rest of the people it is 79%. I want to ask the PM why doesn’t he admit that doctors pay only 11.000 ALL from 16.000 ALL that he takes from them each month?”

“Dear doctors. Your monthly salary in 2005 was 19.000 ALL. Today it is 51.000, equal of 26 salaries in 2005. You pay one salary and a half taxes more, but you have 14 monthly salaries more, compared to that period”, declared the Minister of Financs, Ridvan Bode.

Bode added that the flat tax enabled the government to increase wages and the citizens’ well-being.

“You are trying to lie, like Colombo with the Indians. You say that the Albanians are paying more taxes, but not that they are paid more. These high salaries were achieved because this is the tax system, and if it breaks, the system is destroyed”, Bode declared.

“The salary increase is a lie. 220.000 low salary workers in Albania live with only 176 USD each month”, Ahmetaj declared.

The draft passed only with the majority’s votes, after the government refused to vote the progressive tax proposed by the opposition.

The Parliament also passed a law that stops municipalities from imposing taxes to cell phone companies for their antennas in public spaces, and also the new agreement for the Devoll hydropower plant construction, which now goes 100% to Stadkraft.

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