TIRANA, Nov. 30 – Ruling Socialist Party MPs have voted to lift the excise duty on energy drinks in a move that strips the state budget of about €2 million in annual income in apparent successful lobbying by importing companies.
SP lawmakers at the parliamentary economy committee this week argued the excise duty, currently at 30 lek (€0.22)/liter, did not have an impact on curbing consumption.
“The excise duty introduction has not had an impact on their consumption,” said Socialist Party MP Ervin Bushati, the initiator of a last-minute amendment, adding that the government could revise the law again to ban the sale of energy drinks for people aged under 18, those suffering from diabetes and heart problems, warnings already in place on energy drink packaging.
Opposition Democratic Party MPs accused the Socialist Party MPs of hypocrisy with the excise rate changes following their 2014 introduction when the Socialists argued them with disciplining the market and helping local energy drink producers.
The excise duty on energy drinks was initially levied at 50 lek (€0.37)/liter, before it was cut to 30 lek/liter in 2015.
The changes to the excise duty law are part of the 2018 fiscal package which is under examination at parliamentary committees before getting the final okay by Parliament in December. They are expected to become effective starting next January.
Currently, the overwhelming majority of energy drinks are imported from Austria and the Netherlands while domestic production has almost been stopped.
Data from the customs administration shows Albania imported 7,154 metric tons of energy drinks in the first ten months of this year, up 18 percent compared to the same period last year, collecting about 215 million lek (€1.6 million) in excise duties.
Meanwhile, domestic production of energy drinks dropped to a mere 1,000 litres, down from about 75 metric tons during the first ten months of 2016.
