TIRANA, Dec. 22 – The ruling Socialist Party-led majority made some last-minute amendments to the 2016 budget last week, withdrawing from the increase in the excise rate on domestically produced beer, revising social contribution rates on self-employed professionals and lifting them for self-employed pensioners.
In a session which was preceded by protests by the opposition Democratic Party and representatives of self-employed professionals in the law and health sectors, the ruling majority approved the 2016 budget and fiscal package by 86 votes, more than three-fifths of the 140-seat Parliament.
A last-minute amendment by an MP for the Socialist Movement for Integration cancelled a controversial draft law which targeted increasing the excise rate on domestically produced beer.
“If the excise rate increases, it risks damaging local business by closing down hundreds of jobs,” argued Perparim Spahiu, an MP for the SMI, the key ally of the Socialist Party.
The domestic beer industry, which employs about 3,000 people, had strongly opposed the initial bill, arguing it favored imports and would have negative effects on domestic beer production.
The original draft law envisaged that starting January 2016, the government would impose a 400 lek (€2.85)/hectoliter excise rate on domestic beer production, up from 360 lek (€2.57)/hectoliter currently. The excise rate on imported beer will drop to 600 lek (€4.3)/hectoliter, down from 710 leke (€5)/hectoliter currently, an amendment which was apparently left unchanged.
The ruling majority also stepped down from its intention to tax self-employed professionals on social contributions at maximum wages by setting criteria on the kind of profession, the area where they operate, the average wages in the public sector.
An amendment proposed by Erion Braà§e, an MP for the Socialist Party and the chair of the parliamentary economy committee, was also okayed lifting social security contributions for pensioners working as self-employed professionals.
Representatives of self-employed professionals whose social contribution rates were initially set to increase five-fold had warned they would go on strike if the draft law was approved, fearing bankruptcy.
Under the original draft law, starting January 2016, self-employed professionals were expected to pay social security contributions at a maximum wage ceiling of 97,000 lek (€692) compared to starting from a minimum of 19,400 lek (€138) currently, with tax authorities hoping to collect an extra 1.1 billion lek (€8 mln). Experts expect the hike to translate into higher service fees for consumers.
