TIRANA, Nov. 25 – A business association has taken to the Constitutional Court a new law increasing fines on tax evasion by up to 50-fold, requesting the cancellation of several articles as unconstitutional and the suspension of their implementation until a final say.
The complaint filed by the Association for the Protection of Traders and the Market led by former MP Nikollaq Neranxi comes few days after the new legal changes have become effective increasing fines on tax evasion which now range from 500,000 lek (€3,529) to 10 million lek (€71,000) and warned action by several business associations of taking it to the Constitutional Court because of the “disproportionate” penalties to income and offences committed.
The association, which has also staged several protests against the new penalties, argues the new changes to the tax procedures law violate article 17 of the Constitution because of not respecting the balance between the limited rights and the targeted public interest.
The association representing wholesale and retail traders estimates that there is no reasonable proportionality between the penalties and the targeted goals, placing a huge disproportionate burden on traders.
“Such administrative actions are a huge and excessive burden to the operators and also violate the freedom of commercial activity and private property,” said the association.
The association has requested the suspension of the new fines which it says would have grave and irreparable consequences on the commercial activity of wholesale and retail traders.
Two of the country’s leading business associations, the Tirana Chamber of Commerce and Industry and the American Chamber of Commerce in Albania, have also expressed concern over the fines envisaged in the new law and warned of taking it to the Constitutional Court.
The new changes to the tax procedures law envisage fines of up to 10 million lek (€71,000) on big businesses operating in the wholesale trade for not issuing tax receipts, compared to a previous 200,000 lek (€1,411). Fines on small businesses have also increased 10-fold from 50,000 lek (€353) to 500,000 lek (€3,529) starting Nov. 12.
