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Ekonomia

Businesses oppose government fiscal package: We risk collapse, domestic investment to fall by 20 percent

Businesses oppose government fiscal package: We risk collapse, domestic

Businesses have come out against the fiscal package for 2022. Yesterday in the Committee on Finance and Economy a hearing was held with him and everyone came out against the government plans. The head of the Chamber of Commerce, Nikolin Jaka, has demanded that the proposals be withdrawn. "Let this fiscal package be withdrawn, work with stakeholders looking at every problem and see regionalization. We need an economic agenda, otherwise very soon we will move towards closure, withdrawal. We request: 5% VAT on livestock products for sale; subsidy 10 ALL per liter for all farmers who have cow, goat, sheep milk for 2022. While for 2023 the scheme of Kosovo and Macedonia should be applied; to remove 6 lek of gas, to equalize VAT on agricultural products such as countries in the region. Milk powder tax stand, exclude the producers and apply it for the products that contain it ", he said. The Agribusiness Council raised concerns about changes affecting agriculture, namely the abolition of 6% refundable VAT and the introduction of 10% VAT on agricultural inputs. "The drafters have not calculated the negative consequences and damages caused to the private sector. Total domestic investment will decrease by 20%, while foreign investment will decrease by 23%, according to our experts. They did not calculate the damage caused to the farmers. We will be in a period of crisis. This measure in this period of crisis, is not beneficial to increase revenues, some companies that have a stock of goods will be favored, which will justify the price increase, to postpone the implementation of this measure for 2023 ", said Enida Shena. The Agribusiness Council raised concerns about changes affecting agriculture, namely the abolition of 6% refundable VAT and the introduction of 10% VAT on agricultural inputs. "The drafters have not calculated the negative consequences and damages caused to the private sector. Total domestic investment will decrease by 20%, while foreign investment will decrease by 23%, according to our experts. They did not calculate the damage caused to the farmers. We will be in a period of crisis. This measure in this period of crisis, is not beneficial to increase revenues, some companies that have a stock of goods will be favored, which will justify the price increase, to postpone the implementation of this measure for 2023 ", said Enida Shena. The Agribusiness Council raised concerns about changes affecting agriculture, namely the abolition of 6% refundable VAT and the introduction of 10% VAT on agricultural inputs. "The drafters have not calculated the negative consequences and damages caused to the private sector. Total domestic investment will decrease by 20%, while foreign investment will decrease by 23%, according to our experts. They did not calculate the damage caused to the farmers. We will be in a period of crisis. This measure in this period of crisis, does not prove beneficial to increase revenues, some companies that have a stock of goods will be favored, which will justify the price increase, to postpone the implementation of this measure for 2023 ", said Enida Shena. "The drafters have not calculated the negative consequences and damages caused to the private sector. Total domestic investment will decrease by 20%, while foreign investment will decrease by 23%, according to our experts. They did not calculate the damage caused to the farmers. We will be in a period of crisis. This measure in this period of crisis, is not beneficial to increase revenues, some companies that have a stock of goods will be favored, which will justify the price increase, to postpone the implementation of this measure for 2023 ", said Enida Shena. "The drafters have not calculated the negative consequences and damages caused to the private sector. Total domestic investment will decrease by 20%, while foreign investment will decrease by 23%, according to our experts. They did not calculate the damage caused to the farmers. We will be in a period of crisis. This measure in this period of crisis, is not beneficial to increase revenues, some companies that have a stock of goods will be favored, which will justify the price increase, to postpone the implementation of this measure for 2023 ", said Enida Shena.

Business attitudes

In his speech, Nikolin Jaka also focused on the milk tax. The government plans to raise the tax on powdered milk and producers seem to be threatening price increases. "Currently the whole dairy industry is in a complete collapse. Today we get quality milk for 64 lek, not to be confused with the milk sold by individual farmers. This price is 52 cents, while in Northern Macedonia it is 33 cents, Serbia 31 cents in Kosovo 35 cents. So how will we compete in the region, what agenda have you thought of for the dairy industry? Bosnia, Macedonia and Serbia currently have over 59% of milk imports to Albania. "Until 3 years ago they were 10-20%, the rest are EU countries", he said. Jaka also stopped at the plan to increase the price of gas for cooking. According to him, this indicates inability to manage evasion. "The inability of the administration to manage evasion and smuggling, falls short the expert of the Ministry of Finance who do not know business development policies or do not want to know, which are bad scenarios. If we will pay 6 lekë per liter or 12 lekë per kilogram because this is the gas rate plus VAT, they say 14.4 lekë per kilogram, said Jaka.