Ministry of Finance questions duty payments of concession firms

By Gajtis Bejleri
TIRANA, July 16 – Foreign companies that took over the diesel and mineral extracting industries as concessions are not paying the right amounts of tax duties, said Albanian Finance Minister Ridvan Bode.
All incomes in tax duties from the foreign companies operating in the energy and minerals sector in Albania mount up to ALL 90 million for 2007, according to Bode. Meanwhile their revenues last year were no less than 130 million Euros, or 180 percent more than 2006, according to the Abanian Center for International Trade (ACIT).
These companies were given concessions from the Albanian Government between 2000 and 2003 and they operate mainly in extracting crude oil, and various minerals, such as chrome, copper and iron. The exports of crude oil only increased from 14 million Euros in 2006 to 43 million Euros last year.
The Tax Office does not pay much attention to these companies, whose revenues show the Government could make more in taxes from them, according to Bode. “We are reflecting on the possibilities of improvement of the fiscal system, in revaluating the natural fortune Albania possesses and eliminating the abuse with this fortune, whether it is deliberate or not,” said Bode. The minister emphasized the loss the budget suffers from the export of crude oil. One of the concession companies exported 260,000 tons of crude oil last year alone, according to the minister. This company, Bode said, declared revenues of USD 62 million last year, while the global price of crude oil rocketed from USD 35 to more than USD 130 per barrel. However, it is questionable whether the quality of Albania’s crude oil is as high, therefore as expensive, as the oil quoted by the leading stock markets of New York, London, and Dubai.