Albanians increase fuel, coffee consumption, cut down on tobacco

TIRANA, July 23 – Albanians have increased fuel and coffee consumption but cut down on cigarettes and beer during the first half of 2013, according to data published by the customs administration. Data show some 193,569 tonnes of fuel was imported in the first half of 2013, up 10 percent compared to the same period in 2012. However, fuel imports for the first six months of 2013 are down by 12 percent compared to the same period in 2010 and at almost exactly the same levels compared to the first half of 2009 at the onset of the global crisis.
Known for its massive coffee culture, coffee is the only excise good to have preserved its rising trend during the past four years of crisis. Data from the general customs directorate show coffee imports in the first half of this year rose to 3,640 tonnes, up 3 percent compared to the same period last year, and 11 percent higher compared to the first half of 2009.
With prices having registered a considerable increase, tobacco consumption has seen a sharp decline. Imports of cigarettes during the first half of 2013 dropped to 1,380 tonnes, down 10 percent compared to the same period last year. Tobacco imports were also down 22 percent compared to the first half of 2010 and 20 percent less compared to the first half of 2009.
Albanians are also consuming less imported beer during these crisis years. Beer imports during the first half of this year dropped to 12 million litres, down from 13.8 million litres during the same period in 2012 and 15.6 million litres in the same period in 2009.
Finance Ministry data show revenue from excise taxes collected during the first five months of this year were at around 13 billion lek, down 4.1 percent compared to the same period last year and lower even compared to the first five months of 2010 and 2011.
While lower beer imports can be explained with the rising production from domestic breweries, fuel, cigarette and coffee which are net import products show Albanians have considerably cut down on the so called-luxury products struggling with escalating crisis impacts during the past four years.
Affected by crisis, Albanians are spending less on luxury items such as fuel, cigarettes, coffee and beer. Finance Ministry data show imports of these key excise goods were all at lower levels compared to the onset of the global crisis in 2009 when Albania became one of the few countries to register positive growth rate of 3 percent. Fuel imports in 2012 dropped to 431,835 tonnes, down from 457,297 tonnes in 2011 and 432,131 tonnes in 2009. Fuel prices currently stand at record high levels of around 190 lek/litre compared to an average of 150 lek/litres in 2009. Rising tobacco prices have also forced Albanians to cut down smoking or switch to domestically-grown rolled cigarettes. Finance Ministry data show imports of cigarettes reached 3,630 tonnes in 2012, up 12 percent compared to 2011 but down 11 percent compared to 2009. Famous for its coffee culture, the crisis has had a minor impact on coffee consumption. Some 6,884 tonnes of coffee were imported in 2012, up 5 percent compared to 2011 but down 0.5 percent compared to 2009.
Albania applies a VAT at a general rate of 20 percent on imported and domestically produced goods. Excise taxes are levied on coffee, fruit juices and other non-alcoholic beverages, beer, wine, alcohol, and other spirits, tobacco and tobacco products, petroleum by-energy products, incandescent bulbs, and perfumes and eau de toilette.
Starting from Oct. 1 the customs administration has taken over the collection of all excise tariffs, stripping the tax authorities of collecting excise on cigarettes, alcoholic beverages and domestically produced fuel by the ARMO refinery in an effort to improve excise collection, the second most important tax after VAT.