The World Bank classifies Albania as the poorest country in the region.
According to the bank, one-third of the Albanian citizens live on less than 5 dollars a day, while for other countries this number is lower.
“This is explained by two reasons: growth under the potential of the economy, and deepening of inequality”, said Kosta Barjaba, an expert in social matters.
The population that lives under with less than 5 dollars has reduced with 3.1%, or 88,000 fewer people, as result of economic growth and employment. Again, more than 940,000 Albanians remain under this level.
“When the government takes such measures, such as VAT for the small business, they must take in consideration the effects that they have on this group of people”, said Kastrot Sulka, former Deputy Minister of Social Matters.
According to experts, reducing VAT requires a quicker economic growth. They say that the government should also make a better use of the budget money, especially in villages.
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