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The new fiscal package, the government increases by 6 lek per liter the excise tax on gas, zero taxation on salaries below 40 thousand lek
Written by SOT.COM.AL 30 Tetor 2021
The government approved the new fiscal package yesterday. As part of the fiscal package 2022, it has been decided that the gas for cooking will be taxed at 6 lek per liter. The government has decided to tax for the first time the gas that family members buy to cook and heat. After the abuses, the government has decided to review the taxes for the hydrocarbon sector, where according to sources from the Ministry of Finance it is expected that the excise tax will be 6 ALL for each liter of gas purchased by citizens for heating and cooking. Such a decision comes according to the ministry, as citizens have abused and taken gas for family consumption and used it for vehicles. “This unification reduces the level of excise from 8 ALL / liter to 6 ALL / liter, reducing the cost of motor vehicle users, while the increase of excise for other industrial and household users by 6 lek / liter will really increase the cost of using this substance by them, but in the conditions when the differentiation of excise allows its avoidance and non-payment, the comparative advantages are in favor of unification of the level of excise. From the unification of the excise tax for oil gases and other gas hydrocarbons at the level of 6 lek / liter, it is expected that about +375 million lek excise tax will be collected per year ", it is said in the report. Meanwhile, so far the excise tax on gas has been paid only by drivers, while now everyone will pay. Such a decision is expected to increase budget revenues collected from excise by about 375 million. As well, It is expected that after the approval of this decision, the imposition of the tax will be reflected in the increase of the gas price, which has doubled during this year. If until the beginning of this year the gas was up to 50-60 lekë per liter, today it reaches 89 lekë, experiencing an increase of 30-40 lekë.
Meanwhile, part of the package is the review of payroll tax in accordance with the government program, where salaries up to 40 thousand ALL have 0 salary tax, those who receive 200 thousand ALL will pay 15%. Thus, from July next year, the floor salary that will not be subject to income tax will go from 30 thousand ALL to 40 thousand ALL per month. The government also plans to review some income tax limits on other wages. According to the draft law, which is still in the form of a preliminary draft, it is proposed that taxpayers with salaries up to 50 thousand ALL halve the income tax for the band from 30 to 50 thousand ALL, which today is 13 percent. Also, the draft law provides for the change of the progressive taxation band. Thus, the 23% personal income tax will be applied only for salaries over 200 thousand ALL and above from the current 150 thousand. But, above the threshold of 200 thousand lekë, there will be a fixed amount of 22 and 100 lekë per month as tax. The number of taxpayers who benefit from this tax relief is about 5,900. The negative effect that the budget is expected to have from these changes is expected to be around 12 million euros less per year. However, the proposal must first be submitted to the Council of Ministers and then to be discussed in the Assembly. The negative effect that the budget is expected to have from these changes is expected to be around 12 million euros less per year. However, the proposal must first be submitted to the Council of Ministers and then to be discussed in the Assembly. The negative effect that the budget is expected to have from these changes is expected to be around 12 million euros less per year. However, the proposal must first be submitted to the Council of Ministers and then to be discussed in the Assembly.