High gas prices are filling up the state budget

Tirana, June 4 – Though high gas prices are hurting consumers, the prices are also filling up state treasuries. Gas is sold in the home market at a price of ALL 165 per litre. Only two years ago, the gas price was between ALL 115 and 120 per litre. Consequently, the Value Added Tax (VAT) is applied at a higher price for the same product. For the moment, each litre of gas, sold for ALL 165, yields to the state budget ALL 65. Albania imports, each year, some 450,000 metric tons of gasoline and diesel. A simple calculation shows that the state budget is going to collect ALL 10 billion, around Euro 80 million, in VAT and excise tax from gasoline and diesel. This year, the Albanian government is planning to collect from excise taxes nearly ALL 38.5 billion compared to ALL 27 billion in 2007 and just ALL 19.8 billion in 2006. Most of the increase is expected due to the increased price of gasoline and diesel, since the price of tobacco, alcohol, and coffee are not increased at the same rate as oil. (Tirana Times Staff)