VAT for farmers remains "suspended" - Debate in the Economy Committee on Braça's proposal
The proposal of MP Erion Braçe to repeal the 2018 VAT scheme for farmers, which is 0% on purchases and 20% on sales, has sparked debate in the Economy and Finance Committee. This is because the Ministry of Finance has not yet provided a concrete response to the proposal.
Florian Semani, Deputy Minister of Finance:
"We will study the scheme in an accelerated manner and will have a concrete answer."
Enkeleda Kuçi, Director of Tax Policies:
"We highly appreciate the initiative, as we have said before, we are definitely committed to looking at the value added tax for the agricultural sector in its entirety. The law we have in force is in partial compliance with the EU, a good part of the provisions are fully harmonized. Precisely because of the importance of this sector, we have requested EU assistance, for the purpose of the best possible treatment for a suitable scheme for the agricultural sector. A request that has been accepted by TAIEX, a mission is coming in April to be in compliance with the EU."
But MP Erion Braçe considered the lack of a position a mockery, stating that VAT in agriculture affects 45% of citizens.
"The government must understand that the institution that sets taxes is the Assembly of the Republic and not the government. The government must understand this very well. The second is the independence of the Assembly to decide in the interest of those people who vote for the deputies of the Assembly. The independence of the Assembly cannot be violated by any minister, and even more so be brutally overthrown with votes against. We are talking about an issue that affects 45% of citizens that impacts a manufacturing sector, which is the largest manufacturing sector in the country. The VAT scheme was destroyed for 500 thousand euros."
Several years after the implementation of this scheme, an analysis has still not been conducted on the damage it has caused to farmers and the loss of competitiveness of Albanian products.
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