TIRANA, Nov 6 /ATA/ The Parliamentary Committee for Economy and Finance approved the amendments to the law “On excise duties”, part of the fiscal package that will be implemented in 2024.
The changes restrict the indexation of excise duties within the limits of a two-year accumulated inflation rate that does not exceed 1.5%.
The automatic indexation of excise duties with the official rate of inflation announced by INSTAT for the previous two years was applied in January 2022, in order to reflect the increase in the consumer price index of goods above the level of excise duty applied, as well as prevention of erosion in excises.
But the rapid increase in inflation to “abnormal” levels over the last two or three years, as a global phenomenon, which was first triggered by the COVID-19 pandemic and then by the war in Ukraine, necessitates the review of the increase scheme.
Otherwise, if this restriction is not made, the level of excise duties from January 2024 must increase by 11.5% and if in the following years inflation will result in above-normal levels, the indexation will drive the increase in the prices of goods, such as fuels, alcoholic beverages, beer, wine, etc.
This level of indexation will generate 0.5 billion ALL in additional revenue from excise duty.
/sm/
