The excise tax "shut the mouth" of drinkers! The price increase leads to the "disappearance" of Albanian beer, the production falls into the "pit"

The doubling of beer excise duty from January 1, 2023 continues to have negative effects on breweries. Due to the high price due to increased costs, Albanian beer has lost its competitiveness, while imports have increased in the Albanian market.

According to customs data for January-February 2023, beer production has decreased by 12% compared to the same period in 2022.

Imports for the period January-February 2023 have increased by 50% compared to the previous year. In this period, 5.1 million liters of beer were imported, the highest amount recorded in the last 10 years.

The head of the Association of Beer Producers, Stefan Pinguli, claimed for "Monitor" that the situation in the production sector continues to be difficult, as imported beer is being sold at a price below the level of Albanian beer.

"The situation in the beer production sector has worsened. Due to the increase in excise duty, the production cost of beer was increased by 18 ALL per liter. At these levels, the price of beer also increased. But the imported beers are being sold at a cheaper price than the domestic ones or some other foreign brands have the same price as the domestic beer. Albanian beer is losing its competitiveness, and is even in danger of disappearing. For these reasons, the factories continue to remain closed even for the month of March, since they have no sales", he asserted.

Other producers also raised the concern of increasing the cost of doubling the price of the raw material used in production, malt beer from January 1, 2023.

The companies claimed that they were forced to increase the prices by 18 to 20 lek more, while imported beers from Kosovo and North Macedonia are being sold 10 lek less than the local beer.

Kryetari i Shoqatës së Prodhuesve Stefan Pinguli parashikon thellim të krizës përgjatë muajve të verës, çka do të rrezikojë pamundësinë e kompanive për të paguar punonjësit.

Prodhimi i vendit para ndryshimeve fiskale ka qenë i tarifuar me 360 lekë/HL për prodhuesit nën 200,000 Hl, ndërsa për prodhimin mbi këtë nivel akciza ishte 710 lekë.

Pas ndryshimeve në ligjin “Për akcizat në Republikën e Shqipërisë”, taksa u unifikua në 710 lekë të prodhuesve nën dhe mbi 200,000 Hl, si vendas dhe të huaj.

Earlier, the Ministry of Finance, asked by Monitor, said that the removal of differentiated tariffs is not only a request of the IMF and EU institutions, but on the other hand, it judged that their implementation over a decade in beer has strengthened Albanian companies of beer to face global competition.

Pinguli proposes as a solution the progressive extension of the excise tax over the years, a measure that would facilitate entrepreneurs. Initially, in the relation of the 2023 draft budget, it was foreseen that this fiscal change would be implemented step by step over the years, until unification was achieved./ MONITOR