TIRANA, March 31 – Car imports registered a record high in 2014 when more than 70,000 passenger cars, mostly second-hand ones, were imported to Albania, according to INSTAT.
Data shows Albania imported some 73,169 cars, worth 22.3 billion lek (Euro 156 million) in 2014, up 45 percent in quantity but only 10 percent in value compared to 2013, hinting an increase in imports of second-hand cars. Most cars in 2014 were imported in the third quarter of 2014, some 33,622 pieces, which is the peak of the tourist season.
Back in 2013 car imports registered a double-digit decline, also affected by fuel prices standing at a record high.
INSTAT data shows some 50,166 cars worth 20 billion lek (Euro 142 million) were imported in 2013, down from 56,539 cars, worth 17,994 (Euro 126 million) in 2012, hinting an increase in imports of new cars.
In the final quarter of 2011, when customs duties were lifted significantly lowering car prices and a new law on annual taxes discouraging the use of old cars entered into force, a record 23,503 cars were imported, six times more compared to the final quarter of the previous year.
Having to pay only 20 percent in value added tax, some 51,894 cars were imported in 2011, more than treble compared to 2010.
While the new law lifting customs duties cut second-hand car prices by at least 30 percent, Albanians increased purchases for cars produced in the past 5 to 10 years, also because of the new tax system considerably increasing annual fees for older motor vehicles.
The removal of customs duties was accompanied with a new taxation system based on cars’ age, the engine capacity and the kind of fuel they use.
Meanwhile, car concessionaires operating in Albania have warned they are on the brink of bankruptcy with their sales having sharply fallen since a new law lifting customs duties on second-hand cars entered into force a in late 2011. The Association of 16 car concessionaires operating in Albania says the import of new cars has dropped by 60 percent since changes to the national taxes made import of second-hand cars cheaper and easier in July 2011.
