Customs administration to collect all excise tariffs

TIRANA, Nov. 21 – Albania’s customs administration will soon be responsible for the collection of all excise tariffs, according to a draft law compiled under EU assistance. The draft law will strip the tax administration of collecting excise on cigarettes and alcoholic beverages and domestically produced fuel by the ARMO refinery in an effort to improve excise collection, the second most important tax after VAT. Latest Finance Ministry data show excise collection during the first 10 months of this year were at 32.6 billion lek, or 4.2 percent less than planned under the reviewed budget last July. Introducing the draft law at a meeting with the Albanian Business Consultative Council this week, Economy and Trade Minister Nasip Naco said “the collection of excise for imported and domestically produced products is a key condition for the customs administration based on EU member country experience.” “The gist of this law stands at the computerization of all procedures through an online platform for all businesses increasing both transparency and efficiency,” added the Minister. EC on customs In its latest progress report on Albania, the European Commission says approximation to the acquis in the area of excise progressed slightly with the adoption of a new list of excisable products and rates, including minimum rates for cigarettes. Further efforts are required in order to bring the excise structure and rates into line with the acquis, including reduced rates for beer applied to small breweries. The European Commission concludes that there was little progress in the area of taxation. “Further efforts are required on approximation to the acquis on direct and indirect taxation and to improve the system of refunding VAT. Enhancing administrative and technical capacity and combating corruption in the tax administration require further efforts. Preparations are moderately advanced,” says the report. The European Commission also suggests further efforts on alignment with the EU, including on valuation and the use of simplified procedures and trade facilitation. Enforcement capacity and management of human resources remain insufficient and IT systems are not fully compatible with EU requirements. Overall, preparations in this area are moderately advanced.
New fiscal package Under the new fiscal package approved last summer, changes have been made foreseeing the reduction of excise on beer, and its increase for two types of heavy oil fuels (solar, mazut), as well as the elimination of customs duties on imported cars and the removal of customs tariffs on raw materials for the apparel and clothing industry. These changes have been in force since early Sept 2011. The fiscal package includes changes related to used cars. All those importing vehicles from abroad will no longer have to pay the large customs clearance fee that had been in place for many years. On the other hand, to discourage the use of old cars, the law provides for higher taxation for those vehicles that cause more pollution. To establish a correlation between the use of infrastructure and the road circulation tax, the government has decided to charge the road tax on fuel. Those who use more fuel use the roads and pollute more, according to the government.