Beer producers demand drastic cut in excise stamp tariffs

TIRANA, Nov. 20 – After tobacco importers, even domestic beer producers have complained over the high rates they pay on fiscal stamps issued by a concession company. In a meeting this week with the parliamentary committee on productive activities and trade, beer producers demanded a drastic cut to the tax stamp tax, and the removal of the pre-payment of the excise tax.
“There is no practice in the EU or outside the EU of beer products being equipped with fiscal stamps, but considering this issue as a closed chapter we request that the fiscal code or excise tax stamp is reduced to Euro 2 from the current Euro 22 VAT excluded,” said Luan Bregasi, the director of Business Albania Association
Beer producers had earlier complained that Albania’s current excise tax level at 22 euros/hectolitre, far higher than in Germany, the Czech Republic, Bulgaria and Greece where excise rates vary from 5 to 14 euros/hectolitre.
Local Albanian breweries say they have invested Euro 80 million, employ 3,000 people and pay Euro 15 million in taxes each year.
Genc Ruli, a former Economy Minister and current opposition Democratic Party MP, said the new procedure has proved efficient because reducing market informality and offering guarantees about the brand of the product which benefitted both breweries and consumers. He said the model had been adopted from Turkey where the rate is more than 22 euros.
Eduart Shalsi, a Socialist Party MP who chairs the parliamentary trade committee, said government would review the contract with the concession company which he described as abusive.
Back in 2011, Switzerland-based Sicpa was awarded a 10-year concession to produce and establish a tax stamps control system on tobacco, alcohol and pharmaceutical products. According to a Finance Ministry statement, 1,000 stamps for tobacco products cost 20 euros, compared to 32 euros for alcoholic beverages, 22 euros for beer and 14.43 euros for medicines.
Last week, tobacco distributors complained they pay 20 euros for 1,000 tax stamps, which is much higher compared to rates applied in neighbouring countries and 10 times higher compared to Kosovo where companies pay 2 euros per 1,000 stamps.