Progressive tax

14/09/2013 00:00

Business associations oppose massive implementation of progressive tax
on profits, but they agree for it to be used on some companies.

“We think that the progressive tax should be implemented for large enterprises that have received monopolies in the market due to corruptive licenses and due to the lack of control by the market regulators, we absolutely agree on this”, declared Luan Bregasi from Business Albania.

Gjergj Buxhuku who represents the interests of production businesses shares the same opinion, thinking that the progressive tax should be implemented only on those businesses that fulfill two conditions.

“It should be implemented if these companies work in privileged conditions from the state, with licenses and concessions, and without free competition, and if they have a profit norm bigger than the average realized by the Albanian economy one year ago”, Buxhuku says.

According to him, a wide implementation of the progressive tax on profit would bring deep consequences in the Albanian economy.

“If the 10% tax will be saved, every progressive policy over this ceiling will be accepted. If not, we risk to have no competition in our economy, different from all other countries of the region, as regards the attraction of foreign investments”, Buxhuku says.

The business groups now have the program of the new government. Luan Bregasi considers it positive, especially the part between the private and public partnership, for which he hopes that will finally enter in a legal path.

“Certainly that the public-private partnership in the past has been replaced by the public client partnership, which means that the cooperation has been there, but only for some clients who have received many concessions, works, energy and mine sources. A long partnership based on a correct competition includes the entire private enterprise spectrum, and success is safer and competition is bigger. The market would be open and jobs would be safer”, Bregasi declared.

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