TIRANA, May 4, 2008. According
to specialists, the government
should take immediate action
to increase agricultural production.
They believe this would reduce the
country’s dependence on imports
and, consequently, curb the increase
of food prices and inflation.
Specialists are further advising the
Albanian government to consider
the effects of the present situation,
which means formulating policies
that are going to stimulate domestic
production and pay increased
attention to agricultural production.
The government should also
act to first meet demands in the
domestic market and only later to
focus on exports. In many areas in
Albania there is untapped agricultural
potential, however, the problem
of how to sell crops that are
grown discourages farmers from
increasing farm production.
Experts are also advising Albania
to concentrate its efforts on a
limited number of projects. Ismail
Beka, the head of the Economic
Development Program financed by
the German GTZ, proposed increased
cultivation of grains. Beka
said that such cereals are especially
suitable for Albanian farmers.
First, the cereals have a relatively
short production cycle. Second,
cereals represent the main food
item imported and the basic food
for Albanians. Further, the government
should institute all measures
to increase cultivated lands.
The largest part of the demand
for agricultural products is met by
imports. According to official statistics,
the ratio of import-export
for agricultural products is 8 to 1.
In general, the figures show that
Albania produces only a small part
of the food consumed in the country.
Berisha: We are not going to cut taxes on wheat and flour
TIRANA, May 3, 2008. Prime
Minister Berisha rebuffed calls
from the Socialist opposition to cut
taxes on corn imports. Erion Bra襬
a leading socialist MP in the Albanian
parliament, has continuously
accused the Albanian government
of not doing enough to ease the
burden caused by increasing food
prices. “Out of each bread loaf that
cost ALL 100, 44.6 percent is paid
in taxes. Albanians should know
that more than 40 percent of the
price of one bread loaf goes for
taxes”, said Bra襮
Berisha declared, during his
visit to Saranda, that he rejected the
idea that the government can contain
the increase of food prices by
cutting taxes on wheat and flour
imports. Berisha said, “The media
attacks the government all day long
because the government does not
abolish taxes on wheat and flour,
but the government is obliged to
think about Albanian farmers”.
Berisha said Albanian farmers cannot
compete with foreign imports
if the government abolishes taxes
on wheat and flour. Berisha argued
that the reduction or elimination of
taxes on wheat and flour would
force Albanian farmers to work
abroad.
Berisha further claimed the government
is going to address rising
food prices through the increase of
domestic agriculture production.
Berisha called upon farmers to
present their suggestions because
the government is going to support
them. “I have requested from all
the farmers that I met today, to
present their demands and I have
promised to them that we are going
to support them”. Berisha made
two specific promises. First, the
Ministry of Agriculture was going
to help Albanian farmers to sign
contracts with foreign investors.
Second, the government was going
to speed up its program of constructing
and renovating secondary
roads in order to provide farmers
easy access to markets.
According to the Albanian Minister
of Agriculture, Jemin Gjana,
Albania cannot meet more than 50
percent of its needs for grain
through domestic production, so
the remainder has to be imported.
Importers pay 20 percent VAT
(Value Added Tax) and ten percent
custom duty of the value of wheat
imported in Albania. For flour, they
pay 20 percent VAT and two percent
custom duty. Bakers pay 20
percent VAT for each loaf of bread,
ten percent income tax, 11.2 percent
of their income for social security,
and 3.4 percent of their income for
medical insurance. (Tirana Times Staff)
