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The President of the Republic, Ilir Meta, has decided to return for reconsideration of law no. 112/2021 “On some additions to law no. 9975, dated 28.7.2008, “On national taxes”, as amended “.
With the proposed changes, according to the President, even in this law, part of the fiscal package, the principle of equality of fiscal burden, freedom of economic activity, and equality before the law has been violated, creating a differentiated discriminatory legal regime.
“The proposal is not accompanied by an analysis that takes into account fiscal parameters, in order not to create an extreme situation of preferential treatment, favoring certain branches of the economy, which will have to be subject to regimes of the same nature,” he said. Meta.
According to the President, in this law the differentiation continues in comparison with the entities that operate in the import, trade and use of vessels for tourist purposes, or those entities that operate with powdered milk products for agro-industry producers.
“The imposition of a tax on the supply of fuel for vessels in free customs zones can be seen as intended to avoid abuses and unfair benefits from vessels for tourist and entertainment purposes, which are supplied with fuel in the areas of customs duty and customs warehouses, but the proposed taxation of 65 lek / liter in itself constitutes a differentiated preferential treatment to those entities operating in the import and indication of fuel under normal conditions to which a measure of 90 lek / liter is applied. .
This differentiation has deepened further with the final approval of this tax at the level of 40 ALL / liter.
The imposition of a tax on the import or production of milk powder, whey and milk cream, again remains differentiated.
Any measure that has an economic-financial impact, whether in the form of mitigation for certain categories, should be assessed in advance in relation to the situation dictated and not only if it is in the interest of all citizens, but also to respect the fair relationship between public interest and guaranteeing the proper functioning of the public budget, as well as to constitute a real mechanism for promoting development in a certain sector or sub-sector “, declares Meta.
REASONS FOR RETURN
OF LAW NO. 112/2021 “ON SOME ADDITIONS TO LAW NO. 9975, DATED 28.7.2008, “ON NATIONAL TAXES”, AMENDED “
Honorable deputies,
The Assembly of Albania in the plenary session of 25.11.2021, has approved the law no. 112/2021 “On some additions to law no. 9975, dated 28.7.2008, “On national taxes”, as amended “.
This law with the letter no. 3098 prot., Dated 26.11.2021 of the Assembly, was forwarded to the President of the Republic for decree and proclamation.
This law was approved as part of the fiscal package, accompanied by law no. 115/2021 “On the budget for 2022”.
The latter was returned by the President of the Republic with Decree no. 13369, dated 10.12.2021, after reviewing the documentation, reports of parliamentary committees, as well as the evaluation of economic forecasts formalized through law no. 115/2021 “On the budget of 2022”, and the fiscal package that accompanied it, this budget,
– in its entirety had an antisocial financial plan:
– presented worrying issues of transparency regarding expenditures and fiscal policies;
– presented very worrying issues regarding the level of public debt, its use and economic effect;
– there was no real support for the sectors of the economy and especially for agriculture;
– lacked the necessary budget support for the needy for treatment of Covid-19 infection, who are treated at home and outside the hospital system.
The detailed reasons for the return of this law, in addition to being communicated to the Assembly, are also published in the link: https://president.al/presidenti-meta-dekreton-kthimin-per-rishqyrtim-ne-kuvend-te- law-no-115-2021-reasons-of-return-for-review-of-law /.
While, like the law on the Budget 2022, and the accompanying fiscal package, the changes in the law on value added tax, but also those in the law on national taxes, can not be seen as inseparable, precisely because of the impact they have on public finances .
Amendments adopted in the law on national taxes, through law no. 112/2021 “On some additions to law no. 9975, dated 28.7.2008, “On national taxes”, as amended “, is stated in the explanatory report of the initiative, that they aim at:
– imposing a tax of 100 lek / kg for milk powder for trade;
– setting the tax for milk whey in the amount of 150 ALL per kg and that of the tax for milk cream in the amount of 150 ALL per liter;
– tax for homogenized drink in the amount of 16 ALL per liter; AND
– in order to avoid abuses and unfair benefits from vessels for tourist and entertainment purposes, which are supplied with fuel in the free customs zones / customs warehouses, it is proposed to impose a tax of 65 ALL / liter on the fuel used to supply these vessels in these areas.
Regarding these forecasts, it is estimated that despite the above statements in the accompanying report of the initiative, the differentiation continues in comparison with the entities that operate in the import and display of vessels for tourist purposes, or those entities that operate with powdered milk products for producers agroindustria.
The imposition of a tax on the refueling of vessels in free customs zones, can be seen as intended to avoid abuses and unfair benefits from vessels for tourist and entertainment purposes, which are refueled in free zones customs and customs warehouses, but the proposed taxation of 65 lek / liter in itself constitutes a differentiated preferential treatment to those entities operating in the import and indication of fuel under normal conditions to which a measure of 90 lek / liter is applied.
This differentiation has deepened further with the final approval of this tax at the level of 40 ALL / liter.
The imposition of a tax on the import or production of milk powder, whey and milk cream, again remains differentiated.
When the above imported products are used in the agro-industry, they are exempted from this tax, while for other producers of non-dairy products or for consumption, an import tax is imposed.
Precisely for this differentiated and preferential treatment, the deputies have had different approaches in relation to the proposal of the Government that has been approved, an approach that should have been subject to an objective analysis and evaluation in macroeconomic terms.
Differentiated fiscal treatment, in essence, violates the principles and fundamental constitutional rights for the protection of which the President of the Republic has decided to return this law for reconsideration.
Especially the arguments of the deputy, Mr. Erion Braçe, raised on the fiscal package have stressed the need for the national tax law, despite the very good intention, to give a new space to farmers for fresh milk near factories, the exception made in this law for factories that use milk powder from the milk powder tax, of course, nullifies all the good intent of this law.
More problematic is the fact that the exemption of agro-industry from this tax, which is really the sector that uses almost this product, does not comply with the purpose of the draft law prepared as part of the fiscal package adopted together with this law, to incentivize production growth instead of dairy, in order to support local farmers. This taking into account the fact that the dairy sector is considered a priority sector.
With the proposed changes, also in this law part of the fiscal package, the principle of equality of fiscal burden, freedom of economic activity, and equality before the law has been violated, creating a differentiated legal discriminatory regime.
Some entities are treated preferentially, with disproportionate interventions compared to the needs of the country and different sectors of the economy.
The proposal is not accompanied by an analysis that takes into account fiscal parameters, in order not to create an extreme situation of preferential treatment, favoring certain branches of the economy, which will have to submit to regimes of the same nature.
An initiative of this nature, before being formalized, should have previously analyzed the needs of all sub-sectors of the economy, to assess whether the intervention was needed in several directions and sub-sectors, or only in one sector in particular.
In this way, any measure that has economic-financial impact, whether in the form of mitigation for certain categories, should be assessed in advance in relation to the situation dictated and not only if it is in the interest of all citizens, but also to respect the right ratio between the public interest and guaranteeing the proper functioning of the public budget, as well as to constitute a real mechanism for promoting development in a certain sector or sub-sector.
Therefore, in compliance with the Constitution and pursuant to Article 85, point 1, I have decided to return the law no. 112/2021 “On some additions to law no. 9975, dated 28.7.2008, “On national taxes”, as amended “, assessing that this law creates discrimination between economic entities, and does not rely on a comprehensive analysis aimed at economic stability of the country.
THE PRESIDENT OF THE REPUBLIC
Ilir META
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