Government to Relief Businesses from $400 mln Debt

TIRANA, July 14

The Albanian government will declare a cancellation of tax and customs’ debt dating before 2011 or all the businesses. Minister of Finance Arben Ahmetaj declared this on Thursday. He explained that the new draft law aims at cancelling all the fines, late filing penalties and other obligations from 2008 to December 31, 2011.
Moreover, a partial cancellation scheme will be applied for tax and customs obligations for the period after 2011.
“Concerning fines, obligations, and late filing penalties released after January 2012, those who will pay 70percent of the total debt will be released from 30percent of obligations and other penalties, but this is not set yet,” Minister Ahmetaj said.
The total debt burden that businesses own to the Albanian state is more than 800 million dollars. According to Ahmetaj, the new draft law will cancel a debt equal to three percent of the Gross Domestic Product (GDP).
The Finance Minister also said that about half of the tax debt might be cancelled. Cancellation of obligations has often raised debates related to fiscal justice, but Ahmetaj confirmed that what the government is doing is the right thing.
The debt cancellation consists of all types of tax liability, with the exception of penalties on unpaid social and health insurances.

News Source: TCh