President Meta Returns To The Assembly The Law On The Abolition Of VAT On Yachts: Think About Families In Need And Not Luxury

President Meta Returns To The Assembly The Law On The Abolition Of VAT On

Today, June 8, 2020, the President of the Republic, Meta returned to the Assembly the law on value added tax for yachts in our country.

The law provided for them to be exempt from value added tax on the import of yachts and other water vehicles used for tourism, pleasure and entertainment purposes, not older than 20 years.

"As President of the Republic, I have decided to return this law for reconsideration to the Albanian Parliament, which should deeply appreciate that such initiatives for the application of fiscal relief not only be undertaken after studies and in-depth financial analysis, but also increase efforts to focus the application of facilitation on the categories of goods and services that are most in need of fiscal supportive policies, ”reads the president's reasoning.

Meta also gave the reasons for the return of this law, more specifically he emphasizes that this law:

- Extending the exceptions from the implementation of the fiscal legal regime, endangers the sustainability of the basic law no. 92/2014, on value added tax and sets a precedent for a further chain effect in increasing the unjustified requirements for the application of this exclusionary rule;

-The expansion of the circle of exceptions of this nature potentially affects the reduction of tax revenues from value added tax;

-Creates a differentiation of the treatment of other goods considered luxury, or pleasure, which are not only subject to value added tax, but also excise tax;

-Creates the idea of an exclusion of a clientelistic and preferential nature, because it excludes yachts and other water vehicles used for tourist purposes, pleasure and entertainment;

-It is an action, which further reduces the tax base of Value Added Tax.

-It is not in harmony with the emergency needs of the country, as well as with the forecasts of Financial Institutions, which report on the deterioration of the economic situation in our country.

"The government is responsible for the economic and financial stability of the country and therefore it has the obligation to intervene in any case where such a thing risks deteriorating.

Given the fact that our system is currently facing two natural disasters caused by the earthquake of November 26, 2019, and the second as a result of the global situation due to the pandemic caused by Covid-19 infection, the Albanian government , has the responsibility to be careful both in spending and in undertaking such legislative initiatives.

It is unfair and not at all welcome that this legal initiative is approved while many families and businesses affected by natural disasters are still waiting to be treated with financial support for the construction of the earthquake-stricken apartment, or a relief package for due to unemployment from these months of isolation.

Meanwhile, despite this legitimate expectation, the Albanian government reacts in a completely opposite way by taking legal initiatives to facilitate the fiscal relief of some people who will import luxury vessels, such as yachts. "

In the plenary session of May 14, 2020, the Albanian Parliament approved law no. 64/2020 "On an amendment to the law no. 92/2014," On value added tax in the Republic of Albania ", as amended.

This law was forwarded to the President of the Republic for decree and proclamation with letter no. 1308 prot, dated 19.05.2020 of the Assembly.

EMISIONET