TIRANA, Sept.12- The Ministry of Finance has proposed to the Parliament a new draft law that obliges all savings-crediting associations to pay taxes. The latter usually assist farmers with small loans. This proposal has raised significant resistance from opposition parties, associations themselves and some members of the ruling coalition. Economy Commission vice head, and SP deputy Arben Malaj, explained that “these associations operate in difficult rural areas where the banking system is not yet present. Hence, I believe it is important and reasonable for the state to facilitate their work.” The same opinion has been expressed by SMI deputy, Dritan Prifti. “These are the only institutions that provide crediting to Albanian farmers. The tax means taking away the only opportunity that the agriculture sector has in conditions when the need for financing in this sector is acute,” Prifti said. Some of the right wing party members have also opposed the proposal and have voted to postpone the draft law.
During 2006 these associations distributed 30 million euro to 26.000 subjects, mainly farmers from rural areas. Official data say that agriculture is the lowest credited sector in the Albanian economy, with only one percent of loans given to farmers and producers. Micro loans and micro credit in general is seen as the only way to salvage the situation and provide crediting to farmers. Up until now the savings-crediting associations have not paid any taxes to the Albanian government.
