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Strategy of war against informality in Albanian economy.
Konfindustria, in the expression of interests of its members, representatives of most important domestic industries, regarding approval in the Council of Albania of the law “For some changes in law nr. 8560, date 22 December 1999” , “For taxation Procedures in the Republic of Albania” changes, introduces as below:

1- Konfindustria supports every government initiative that today informality in economy to be replaced by the rule of law, otherwise we very much risk to loose in the unequal war of competition in the market with the fiscal evasors. In such conditions, absence of debate of Government with Konfindustria and business in general for the war against the informality is not reasonable.

2- based on the experience of the country and that of EU, Konfindustria thinks that it is impossible to hope in the success of the war against informality, limiting only in giving some more rights to the executive, as aims the debated law, seeing it separated from the entirety of the legal ambiance where it will act. Today’s legal and institutional reality produces in an effective way fiscal evasion on one side and arbitrarily and corruption on the other side. The responsibility in creating of such a reality belongs with no exception to all political forces in power yesterday and today.

3- Konfindustria has requested from the Albanian Government with no further delays to open a debate to fight with a Legal Packet of Reforms the causes of creation of informality and do not limit focusing in the consequences. Konfindustria thinks that the backbone of the debate with the Government should be as below:
a. Building up of the Administrative Court/Trade as per examples of the countries of EU.
b. Knowing of ht total guarantees alternative to “cash” for any pretended penalty.
c. Deduction of the quantity of penalties against the claim of the fiscal institutions.
d. Legal adjustments for the total formality of trade relations/transactions in the country, i.e., spread of VAT and registering cases in the so-called “small business” too, - formality of agricultural and farming production in the country, - finishing the regulating reform for licenses, etc.
e. Complete reform in the fiscal legislation of the country, where we consider the “flat tax” toward the decrease general quantity of taxes, as per experience of countries of EU and countries in the region, review of politics for excise, etc.
f. Reforms in fiscal institutions (Custom, Tax) toward informality, professional increase of workers, giving of special responsabilitites for valuing and rating of penalties and fines, use of guarantees in the business penalizing process, etc.
g. Deduction to the possible maximum of all costs for production and services for Albanian industries, including also administrative costs, such as the case with the debated law. Any delay, seriously damages the tough fight for markets, especially after signature of SAA.

For the above, we are ready to cooperate with the government institutions. The cooperation of the Government with the groups of interest and before all with Konfindustria, the institution which groups the most important part of the national business, is vital for the economical success or failure.
 

Nisma

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