Agriculture will continue with the same VAT refund scheme until September 2025, when the new Parliament, which emerged from the May 11 elections, is constituted. The Central Election Commission blocked the review and approval of the draft law on Value Added Tax, which regulates the refund scheme in agriculture, with the argument that it has an electoral effect and violates the Electoral Code.
"I have requested explanations from the CEC, and I am waiting for information, but I am convinced that they have not understood the initiative," said Eduart Shalsi, head of the Economy Commission.
The initiative proposed by MP Erion Braçe calls for the equalization of VAT to 20% in agriculture, since today a collector, when buying a product from a farmer, has a 0% VAT refund, while when buying it from an import, 20% is refunded. With the argument that this draft law does not bring tax benefits, the Economy Committee is seeking clarification from the CEC on where the code is affected. The initiator Erion Braçe requested that the initiative be approved by the Parliament and that he himself will pay the CEC fine.
"I'm sorry that the initiative has a last name and at a minimum, they should have called me, so that they understand what it's about. To receive and read the initiative, and understand what effect the initiative has. The decision they made is a kitchen decision, to stop anyone from peeling potatoes in the kitchen because the beneficiary is the one who eats the fries. I would really like to move forward and I pay the fine in installments. Who has complained about this initiative, who? For 6 years I have understood who is hindering the initiative, but they have reached this far to the CEC", said MP Braçe.
The change to the scheme was unanimously approved on Tuesday by the Economy Committee, based on the argument that the 2018 formula proposed by fugitive former minister Arben Ahmetaj has harmed the sector, favored imported products of all food groups, and increased informality.
The equalization of the VAT scheme is a request that has been repeated every year since 2018, whenever the budget and fiscal package are reviewed. Also on Tuesday, the CEC also blocked the initiative for the "Mountain Package", which had in fact been previously suspended by the deputies themselves in parliamentary committees, as it favors 500 beneficiaries with tax exemptions.
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