Business sector drafts a list of proposals for the new government

Business sector drafts a list of proposals for the new government
Besides employing a real army of people in this country, they also fill the state coffers through the payment of taxes. As a result, they claim that they’re entitled to raise their voice to demand more rights and more concessions. We’re referring to Albanian entrepreneurs, who, with the new government cabinet in office, will now have a minister of State for the Protection of Enterprise. So, the business community has drafted a list of proposals for the new government. According to this sector, this list would have an impact in improving business climate, it would make them more competitive and at the same time, it would lower informality.

Thus, represented by the Union of Albanian Manufacturers, they have demanded, first of all, for the government to review all the fines issued to them, claiming that these fines range from 20 to 50 salaries, putting them under enormous pressure. At the same time, the business community also demands the lifting of the customs scanning fee, because it is against the legislation on inspection. On the other hand, Albanian manufacturers have requested the new government to review and unify customs and taxation procedures regarding fines and right to file complaints. Meanwhile, as far as their economic activity is concerned, Albanian entrepreneurs are requesting from the new government to remove several taxes that they deem unnecessary. One of them is the tax applied on packaging. The business community is also requesting the lifting of excise on fuel for the manufacturing industry and the full lifting of Value Added Tax on the import of machinery/equipment for domestic manufacturers.  “We demand the government to reduce local government taxes, considering the fact that temporary taxes often turn into permanent taxes”, the business community says.

DECISION

How will the Ministry for the Protection of Enterprise work?

With the new government cabinet in office, the country now will also have a minister of State for the Protection of Enterprise. The government has officially clarified that the scope of this ministry is to help and protect private enterprises that do business in Albania.  The government also explains that this ministry will investigate and handle all complaints lodged by private companies, including the ones filed by foreign and strategic investors, against public institutions in the country. “The Minister of State for the Protection of Enterprise will not handle cases that are being or have been handled by the court”, the government’s decision says.

What taxes should be cut and what taxes should be lifted

The business community is asking the government to cut a few taxes and lift a few others. Namely, private companies are demanding authorities to review and lower local government taxes, claiming that temporary taxes often turn into permanent taxes.

The business community is also demanding a reduction of property tax on assets belonging to the manufacturing industry, but also, to lift Value Added Tax on imported machinery and equipment. “A reduction of VAT for specific sectors of the economy and a reduction of VAT on food to regional or EU levels”, is another request addressed by the business community to the new government in relation to the current tax system. Meanwhile, businesses also demand from the government to subsidize up to 50% of the value for the payment of social insurance for newly created jobs (for a 6 month period) in the manufacturing industry.

 

“To cut electricity charges for manufacturing companies”

The reduction of the price of electricity for the manufacturing industry is something that the business sector is asking as a result of the situation in the countries of the region. “We are referring to the countries of the region, given that it is claimed that we are working in a liberalized power market. Transmission charges should be reviewed in order not to exceed the charges that are applied in the region”, is one of the demands that the business community has addressed to the government. Meanwhile, in order to cut energy costs, the business community proposes the replacement of imported fuel with fuel produced in the country. According to businesses, this can be done without any extra costs for the state budget.

“Informality should be reduced, businesses that don’t pay taxes, unfair competition”

Businesses which do not pay taxes are considered as unfair competition by businesses which pay them. According to the business community, they should be penalized by the state. This is another request that businesses in this country address to the government, demanding its intervention in fighting informality. According to these businesses, this can be achieved by introducing VAT in the retail market and auditing informal business outlets. “A reorganization of taxation and customs structures to enable fight against informality”, is another option that they give, concluding with the need to improve auditing as a scheme that, according to businesses, supports formalized manufacturers.

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