The Economy Committee brought together the socialists and the democrats to vote on the draft law of deputy Erion Braçe, to change the VAT scheme in agriculture. Socialist Braçe demands the repeal of the 2018 scheme, proposed by the former fugitive minister Arben Ahmetaj, because it has damaged the agriculture, livestock, forestry and fishing sectors. Currently, when a collector buys the product from a farmer, the VAT refund is 0 percent, while when he buys it from an import, 20 percent is refunded.
"It applies 0 percent VAT on purchases from farmers or livestock farmers, and they are forced to sell at 20 percent, practically you no longer have a value added tax but a turnover tax. This has resulted in a very low impact on domestic production, has favored imports and products that come from imports and we will establish equality in domestic production. It will be applied through an invoice and when the VAT is calculated, it will be done as it happens in the entire market, VAT on sales minus VAT on purchases and the VAT payable remains. This initiative brings formalization, since today as we speak there is no invoice," said Braçe.
The initiative was supported by all members of the committee.
"The policy followed since 2018 has led to a decrease in the number of livestock and livestock production, and at the same time has increased the emigration of farmers and livestock keepers. This scheme has strengthened the import of all products," declared DP MP Emilia Koliqi.
"This scheme will bring fair competition and price reductions for Albanian consumers," said Alban Xhelili, a member of parliament from the Socialist Party.
The Ministry of Agriculture and Rural Development is also ready to establish a working group to review the scheme and change it.
"The Ministry of Agriculture is in principle in agreement with any initiative that positively affects our farmers. Even in 2018, we were for this VAT not to change, and we are ready to cooperate with the Ministry of Finance and help the Ministry of Finance change this Tax. We will sit in technical groups to prepare sub-legal acts", emphasized the Deputy Minister of MARD, Arian Jaupllari.
Although the Economy Committee expressed its support for the initiative, the opinion of the Ministry of Finance is also needed on this draft law. (A2 Televizion)
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