TIRANA, September 14 – Albania’s excise law has undergone significant changes, bringing good news for some businesses, but also including new companies to the list of those subject to the excise taxes, according to the American Chamber of Commerce.
Glass, plastic and a mix of these two were added to the excise tax list last summer. The move comes following European practices and trade agreements, and includes removing the obligation to pay excise on luxury products such as perfumes and several types of cosmetics.
Changes to the excise law were made in the parliament’s Economy Commission without the presence of opposition lawmakers, but that didn’t stop the passage of the draft law.
The bill passed with a series of small changes, concerning the abolition of excise on water and fruit juices, after a proposal by commission member Shefedin Shehu during discussion at the Economy Commission.
In terms of removing excise from a category of so-called luxury products like perfume and cosmetics, the bill was approved without changes.
There was great interest among lawmakers during the parliament’s session associated with the impact of this new law, which Finance Minister Ridvan Bode rated as very important.
Minister Bode said the budget impact of the bill would be less than 1 billion lek, while it is worth noting that it has a positive impact on the environment.
Products affected by the new excise law which have an impact on the environment include tires, fireworks, batteries and packaging in particular.
The bill also opens the way for reimbursement for recycling materials.
“For plastic packaging, glass or mixed, used as raw material by local recycling industries, there will be a 50 percent reimbursement of excise tax paid on the packaging, according to quantity, conditions and procedures set forth,” says the law.
In total, the excise law changes proposed by the Ministry of Finance are expected to bring in about 4 billion lek a year, without including the 20 percent VAT, which adds another 800 million lek.
(Box)
Excise taxes
Packaging:
New plastic 100 lek / kg
New glass 10 lek / kg
Used plastic 200 lek / kg
Used glass 20 Lek / kg
