TIRANA, April 8 – The American Chamber of Commerce in Albania has asked the government to take further steps in protecting businesses and employees affected by the COVID-19 restrictive measures. In an official letter addressed to Prime Minister Edi Rama, Minister of Finance and Economy Anila Denaj, Minister for the Protection of Enterpreneurship Eduard Shalsi and Minister of State for Reconstruction Arben Ahmetaj, AmCham presents four proposals to be enacted by the government.
Firstly, the American Chamber proposes that the government ensures that access to credit funds are available to all businesses, regardless of size. “The loans should be issued at minimal or Zero rates given that the guarantee fund helps financial institutions to significantly lower their risk. In addition, companies whose debt includes amounts owed to the Government should not need to take a loan to meet these obligations. The Government should delay these debt payments until these companies resume their normal business operations. For companies that have VAT credit, reimbursement must be quick and free of long and complicated procedures,” AmCham writes. Moreover, transparency and specific details are also necessary in the process of allocating the funds.
Furthermore, AmCham states that the Albanian government should provide unemployment benefits to all eligible employees, regardless of the size of the company that is laying them off, as unemployment pay is supposed to help individuals rather than companies. “Based on law number 45/2019 on civil emergencies, we strongly recommend that all employees who retain a relationship with their employer but are currently home due to employers’ business operation being suspended or severely affected, receive unemployment benefits, regardless of the business size of their employer.”
Amid the many concerns of the people over tax payments, AmCham calls for the government to delay the prepayment of taxes for the year 2020, by passing “a legislation which will allow companies to make delayed payments in installments for all industries adversely impacted by the virus and governmental measures.” The Chamber adds that payments of local taxes, social security contributions and personal income tax are delayed for a period of at least two months.
AmCham’s fourth proposal addresses the need to consult with stakeholders before making important decisions impacting businesses, as their “representatives are indispensable during this crisis and should be part of the discussion.” According to the American Chamber, gathering input from the business community would significantly increase the quality and sustainability of the legislation and increase the effect of the measures in long term.
“Please note that these proposals are the result of a detailed and comprehensive process. They embody a questionnaire of our members representing an equivalent of 21% of Albanian economy, a summary of quantitative analysis from our three Committees: Taxes, Legal and Investments, as well asbest COVID-19 practices from our network of 109 American Chambers of Commerce around the world,” AmCham concludes.
Earlier in March, the government approved a 300 million financial assistance plan, 80 million euros of which will go to big businesses that are unable to provide salaries for their employees as a Sovereign Guarantee, while small businesses, families in need and the unemployed will receive 53 million euros. On April 15, the government is expected to extend the plan by including the tourism sector which has received a second hit after the November 26 earthquake.
