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Meeting with the Ministry of Finance
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On April 21, 2017 the NBF held a meeting with General Director of Macroeconomic and Fiscal Policies at Ministry of Finance Mr. Nikolla Lera. The NBF was represented by the Coordination Unit, Ms. Esmeralda Ballesha and ACER. This discussion paid attention to the VAT sectorialization. Mr. Lera emphasized the very positive step taken from government for reduction of tourism VAT into 6 %. He added that VAT reduction of façon industry for subcontractors seems currently difficult to realize due to a recommendation of IMF for Albania. In addition, he argued that the reduction of agriculture VAT is impossible to take place as it will set up a ‘’hole’’ into state budget which will need then an increase of taxes to compensate the handicap. In addition, he said that the government is not sure how much this reduction will impact into informality decrease.
Mr. Lera reconfirmed the partial selection of the taxpayers for a tax inspection based on risk assessment analysis while stressing that the system needs further improvements related to the criteria they used in this regard. Mr. Lera reconfirmed that there is a lack of professionalism of tax inspectors; hence they have started conducting trainings. A main concern according to Mr. Lera remains the recruitment process of tax inspections which comes directly from Public Administration Department. This process does not select the mot appropriates ones and often they do not have the basic professional capacities. Mr. Lera talked about the lack of legislation sustainability. He was in the same line with NBA finding and proposal while adding that the Ministry of Finance has been endeavoring to keep this as much stable as possible. Related to the reduction of the VAT threshold from 5 to 2 million, Mr. Lera agreed. The appealing issue was addressed during discussion. Mr. Lera stated that the Appealing Department which was recently shifted from GTD to the Ministry of Finance will start functioning starting from May and roughly 250 appeals will start to get scrutinized for period this department was out of operation.
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