Reduction of VAT reimbursement for farmers from 20% to 6%, is countered by the Albanian Agribusiness Council. They find this decision wrong, which according to them helps importers and hurt domestic production. Mayor of KASH, Agim Rrapaj, asked about this decision said: “VAT refund of 6% will not work.
Firstly, because it is proven, secondly, there is no unformalized farmer’s interest to formalize for 6% and thirdly, those who have invested in collection to buy domestic products will no longer do it because it was 14%, a figure significant that will be included in the cost. According to Mr. Rrapaj this is a blow to domestic production where imports will increase and export will decrease. He continued:
“The true payer of 6% is the customer, neither the producer nor the collector.This chain is interrupted to the collector and to the exporter, the producer is given 6%, while the exporter and collector is required 20% In this case, 14% did not where it will be downloaded, will leave the production without receiving the farmer and will pick it up in export or charge the product cost by 14%.
We as the KASH have addressed the Prime Minister for review, we will address all instances, otherwise we will face serious consequences, such as rising costs and lack of sales of farmers’ products.