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Fight against gray economy met with political controversy

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10 years ago
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TIRANA, Sept. 22 – While authorities have intensified their fight against fiscal evasion, urging the registration of small businesses and the use of proper registers, there has been some political backlash both from the opposition and members of the Socialist-led ruling coalition.

The parliamentary commission on economy, for example, refused to approve part of a draft law that would allow buyers to refuse to pay for goods they had obtained without a proper invoice.

The measure is part of a package of tougher penalties that include the 10 to 50 fold increase of fines on businesses. There will also be jail time involved in some cases, under proposed changes.

The government is urging thousands of tiny businesses to register and issue receipts for their sales. They goods are confiscated if they don’t obey.

Authorities have confiscated the goods from tens of businesses across the country, leading to protests in Shkodra, Elbasan and Kavaja, led by people who say they cannot afford the cash machines or do enough business to use one.

The government says everyone must be in the system. Compared to a year ago, more than 11,000 new business have been registered, officials say.

The political opposition has accused the government of favoring large businesses tied to authorities and looking to drive small survival shops out of business.

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