Court dismisses gas companies’ claims on cash registers

TIRANA, April 3 – Albania’s Constitutional Court has dismissed as unfounded claims by the Association of Liquid Gas Importers and Traders opposing the compulsory installation of cash registers under an ordinance by the Finance Minister back in May 2010. In a decision dated March 27, 2012, the Constitutional Court rejected as unfounded claims that the companies’ economic freedoms had been violated.
The Court argued that the obligations that the legal framework envisages for the taxpayers are financial obligations constituting a source of revenue for the state budget and that taxes are not negotiable obligations.
The Association claimed that economic freedom guaranteed by Constitution had been violated because the obligation to purchase, install, maintain and periodically update fiscal equipment for liquid gas importers and wholesale traders severely affected the budget of these companies.
On the other hand, government claimed that economic freedom did not mean independence from each state control.
The cash register issue caused problems with the distribution of liquid gas in early 2011, but
the situation normalized following the installation of cash registers even by the Petrolifera oil and gas terminal in Vlora, southern Albania.
The suspension of liquid gas distribution by Petrolifera, the biggest terminal in southern Albania, in February 2011 reduced oil supply and further increased gas prices following the company’s refusal to install cash registers because of only serving as a storage site.
Liquid gas companies operating in Albania strongly opposed the Finance Ministry decision which obliged them to install new costly cash registers measuring gas in litres and not kg as they previously did. However, the Tax Directorate dismissed the operators’ claims saying that the new cash register system would measure the real turnover and examine the amount and quality of gas which traders are not willing to do.
In mid-2011, the Competition Authority also launched an enquiry into the concession company operating the Porto Romano liquid gas storage site in Durres after identifying violation of competition rules and a possible monopoly situation. The decision came after an operator had not been allowed to use the Porto Romano port to discharge liquid gas from a ship although submitting all necessary documents to the Romano Port concessionary. The Authority suspects the decision might have been taken to favour other companies. However, the final results of the enquiry have not been published yet.
Gas prices in Albania have registered significant increases following rising prices in international markets, the depreciation of lek against the US dollar and the difficulties in customs clearance in ports.
Prices of liquid gas, which is used as a cheaper alternative to cooking and heating, have increased by 10 lek to 100 lek/litre over the past year.
Hundreds of retail operators sell liquid gas bottled in 10-15 kg cylinders even in unlicensed highly inhabited areas.