Cash register bill turned into law

TIRANA, Nov. 22 – A bill foreseeing the compulsory installation of cash registers for small businesses and their compensation by central government budget, was turned into law last week in Parliament. The bill was approved by a narrow margin of 71 votes, while the opposition which had contested the draft law because of violating local government autonomy and finances, did not take part in the vote.
Opposition Socialist Party MP Arben Malaj said that initiating fiscal policies which deteriorate local government financial autonomy ahead of next year’s local elections would further increase negative effects in the country’s political environment.
Under this law, government is taking 2.3 billion lek (23 million dollars) from taxpayers and indirectly paying the companies which have sold the cash registers,” added Malaj.
However, under an amendment to the law all municipalities and communes will be compensated at a reasonable level from the state budget.
Few days ago, the Finance Ministry reconfirmed that all expenses for the reimbursement of new cash registers will be paid by central government, assuring opposition-led municipalities and communes that their local government revenues will not be affected by the process. The reaction came by Finance Minister Ridvan Bode following protests by the Association for Local Government Autonomy, representing some 100 big municipalities and communes led by the opposition Socialist Party, which complained that the new changes to the tax law would oblige them to compensate in taxes the installation of cash registers for small businesses, a process expected to conclude by the end of February 2011.
Under the recently approved draft law, all traders, who initially protested against the government decision when asked to buy them, can benefit up to 44,000 lek (around 440 dollars) in tax compensation for the tax registers whose final installation deadline has been postponed by next December.
Starting from next year, VAT inclusion for small businesses will further drop to 2 million lek of annual turnover, down 5 million lek currently.