“All measures have been taken to cope with the situation. We are working on scenarios for what is yet to come. We are prepared to support categories in need and guarantee that the Albanian economy will perform well regardless of this impending crisis. We take prudent measures and take into account escalations as well. We will not stop here, ” the minister said during the debate in parliament on prices.

In response to the DP MP, Edmond Spaho, who stated that prices have increased 40%, Ibrahimaj stressed that the daily monitoring in markets does not show that prices have increased to this extent.

“The prices of some groceries have increased, compelling us to set up Transparency Boards to prevent abusive prices and check profit margins for staples because we are at war, and at the outset of a global economic crisis,” said the minister.

The Minister also dismissed the accusations of Spaho for increase of unemployment rate in the country and decrease of the average salary.

According to her, the evidence show that unemployment has decreased from 16.4% in 2013, to 11.4% in 2021. Meanwhile, the average salary from 45 thousand ALL in 2013 has gone up to 59 thousand ALL in 2021.

“Albania through the measures taken managed to recover the jobs lost due to the pandemic-triggered closure within 2021. Only through a measure, that of keeping the price of energy unchanged, Albania recorded the lowest inflation rate in the region,” she said.

The Minister noted that the government through a budget review has constrained operating expenses by 10-20%.
“The Reserves Directorate foresees the purchase of 370 tons of food items through a fund 5.6 times higher than last year. We have taken measures for oil and fuel reserves and are monitoring the wholesalers,” she said.
Regarding the opposition’s proposal for tax reduction, Ibrahimaj said that for most citizens and businesses, taxes have been reduced.

“The tax system does not work with motions. We have taken measures to increase subsidies so as not to erode the fiscal system. For most citizens and businesses, taxes have been reduced. 60% of the Albanian household consumption goes to entities that do not pay VAT. So abolishing the VAT on groceries would not lead to lower prices. That is why we will not interfere in the tax system. Fuel excise in Albania is lower than in other countries of the region and the one set in EU directive. For oil, the EU directive stipulates 45 lek, in Albania it is below 37 lek. So it is a fair tax in line with our philosophy that whoever earns more pays more. We have decided to protect the citizens from the increase of the ticket price, as well as the farmers from the increase of fuel price. This government has shown that it does not wait for the proposals of the opposition to react,” said Ibrahimaj.
/r.e/sm/