Production, exemption from gas excise duty - Proposal/ High cost for companies. The competitiveness of Albanian products is undermined
Liquefied petroleum gas used in the manufacturing industry should be exempt from excise duty. This is the proposal submitted for discussion in parliamentary committees by Democratic MP Enno Bozdo.
Referring to the draft proposal, the current law does not provide for the exemption from excise duty of liquefied gas for production purposes, while it is argued that the poor functioning of state mechanisms to stop abuses in the market is not a reason to burden the manufacturing industry, where the imposition of such an excise duty under today's conditions has a very negative impact on the activity of this sector.
According to the arguments accompanying the proposal, the application of this excise tax to the manufacturing industry is unjustified and not at all in line with the principles on which excise taxes are applied, harmful to this industry and consequently to the country's economy.
One of the arguments is that the production companies buy the liquefied gas by taking the kilogram as the unit of measurement and not the liter. Taking into account the kg/liter ratio in this product, the excise duty is automatically converted from 6 lek/liter to 12 lek/kg. Also, its price has increased from 50 lek/kg in the period before the crisis, to about 95 lek/kg today (with VAT).
It is also argued that liquefied petroleum gas (LPG) accounts for a significant percentage of total costs in the manufacturing industry. Depending on the sector, it ranges from 30% to 35% and perhaps more. In these conditions, the imposition of excise duty makes the situation even more difficult.
Another argument is that Albanian manufacturing companies export a large part of their products and the increase in cost with such an excise tax directly affects the competitiveness of Albanian products in the region. Meanwhile, none of the countries in the region has imposed such an excise tax on liquefied gas. For this reason, it is emphasized that the great negative impact that Albanian companies have from the imposition of this excise tax will further deepen the gap in competition with the countries of the region.
The draft also notes that EU countries themselves take a cautious approach to this issue, leaving it up to member states. A large number of EU countries exempt this product from excise duty.
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