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Confindustria has asked the Albanian government to intervene with immediate measures to deal with the fuel crisis, which according to it is deepening and has an unclear deadline, as a result of developments in the Persian Gulf.
In its response, the organization emphasizes the need for the urgent design and implementation of a fiscal relief package to curb the increase in market prices.
According to Confindustria, the first anti-crisis package should be based on two main pillars. First, all additional budget revenues from VAT on increased fuel prices, compared to the pre-crisis period, should be returned directly to citizens and businesses through a reduction in the final price.
Secondly, it is proposed to reduce the vehicle circulation tax to the level of the increase in revenues from fuel VAT.
Another measure considered necessary is the creation of an institutional mechanism for setting a ceiling price on the retail sale of fuels, so that the reduction of the fiscal burden does not translate only into increased profits for traders in a market perceived as oligopoly.
Currently, fuel prices in the domestic market have reached up to 200 lek per liter and are expected to continue to rise. Konfindustria warns that this situation could bring serious consequences for the economy, industry and citizens.
"Confindustria, taking into account the deepening and indefinite prolongation of the fuel crisis due to the war in the Persian Gulf, requests from the government the rapid construction and implementation of a fiscal package to alleviate market prices. Confindustria requests that the first anti-crisis fiscal package include at least two pillars: First, the entire additional revenue in the budget from the implementation of VAT on increased fuel prices compared to the pre-crisis period, be returned directly to citizens and businesses in the final price. Second, the vehicle circulation tax be reduced to the extent of the increase in absolute revenue in the budget from VAT on fuel compared to pre-crisis prices.
The third necessary accompanying measure of the package is the construction of an institutional mechanism for determining the ceiling price of retail fuel sales in order to ensure that the reduction of the fiscal burden does not end only in increasing profits for oligopolistic traders. Retail prices in the market have reached the limits of 200 lek/liter and are headed for further growth, which could create devastating consequences for the economy, industries and citizens. Albania has the highest fuel prices in the region and further growth would risk a full-fledged economic crisis with serious multidimensional consequences, up to the political stability and constitutional order of the country," the announcement states.
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