TIRANA, Oct 30 /ATA/ Democratic Party leader Sali Berisha warned that the government’s proposed fiscal package would increase the financial burden on citizens, small businesses, self-employed professionals and the middle class. Speaking to the media at the party headquarters, he said the package envisaged tax increases totalling around €200 million, which he argued would push up prices and place small businesses under further strain.
“Edi Rama, reportedly without even consulting his own ministers, presented a package two days ago that raises taxes by around €200 million in total. It severely hits small businesses, self-employed professionals, the middle class, which plays a decisive role in providing services to citizens, and low-income families.”
“The package raises the standard VAT rate to 21%, thereby driving up prices across the board and undermining the competitiveness of Albanian businesses. Under the package, he announced a VAT cut on more than 50 basic goods. At first glance, this appears to be an attempt to bring prices down. It will have no effect. Complete hypocrisy,” he said.
Regarding fuel taxation, Berisha said citizens would continue to face a heavy tax burden despite the proposed changes.
“Fuel prices affect even those who do not own cars, through bus fares. As for those who use their cars every day – and there are now hundreds of thousands of them – he says he will remove the charge from each litre of fuel only to impose it on their vehicles instead,” he said.
Berisha also pointed to the role of the informal economy and funds he said were generated through criminal activities in driving up prices.
He argued that domestic production was shrinking and that economic growth did not translate into stronger productive activity.
Berisha argued that a VAT cut would not lower prices due to widespread informality, claiming that drug-related money was fuelling inflation, domestic production was declining and economic growth was driven largely by taxation and construction rather than productive activity.
Berisha claimed that foreign investment was at an all- time low, arguing that much of the capital entering the country was channelled into property purchases and construction. He warned that the government’s fiscal package would harm hundreds of thousands of businesses and drive investment away by doubling the dividend tax from 8% to 15%, without prior consultation.
Berisha said that under a Democratic Party government, taxes would never exceed 12.5%. He also pledged to provide a 100% VAT refund on basic basket goods, with the corresponding amounts paid directly into citizens’ bank accounts or through another mechanism yet to be determined.
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