Albanian ministry rejects SMI proposal to reduce income tax for TCF businesses

The Finance Ministry of Albania rejected on Friday the proposal of the Socialist Movement for Integration (SMI) to reduce the income tax for textile, clothing and footwear (TCF) businesses from 15 precent to 10 percent. At the meeting of the parliamentary Commission on Economy and Finances, SMI lawmaker Perparim Spahia asked the Finance Ministry to explain the impact on the budget of the income tax reduction for the TCF businesses. Deputy Finance Minister Ervin Mete, present at the meeting, said that with the application of the 15 percent tax the effect on the budget would be 1.9 billion leks (about 18.6 million U.S. dollars), whereas with the application of the 10 percent tax the effect would be 1.27 billion leks. Speaking on behalf of the SMI parliamentary group, Spahia said that they would insist on the proposal to reduce the income tax. However, Mete said the Finance Ministry would reconsider this request soon. The Chamber of Commerce and Industry considers as positive the proposal of the SMI to keep unchanged the tax on profit for garment and footwear industry at the level of 10 percent. During a meeting on annual analysis of performance, President of the Chamber of Commerce and Industry Nikolin Jaka stressed, "I express maximal appreciation for SMI's engagement regarding amendments to fiscal package for garment and footwear business considering it one of the most important sectors of the economy that needs care and support of government policies." "The Chamber of Commerce and Industry, positively evaluating the commitment of Albanian majority to pay debt to business, hopes it would also take into account the requests of entrepreneurship before vote of fiscal package in Parliament. We also have a signal of hope from the hearing on this package at the Parliamentary Committee of Economy," Jaka said. (1 U.S. dollar = 102 leks)