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IMF against the abolition of VAT on basket products: It is not translated into price reductions!

  • 10/13/2021 10:24 AM
IMF against the abolition of VAT on basket products: It is not translated into price reductions!

The head of the IMF mission for Albania, Yan Sun, has spoken out against the proposals of the opposition in our country, for the abolition of VAT on basket products. According to Yan Sun this does not necessarily translate into price reductions. The same argument was used by Prime Minister Rama on the increase of bread price.

"It is not the first time that an increase occurs. In 8 years there has been a threefold increase in the price of bread. The largest supplier of wheat is Russia in Europe, which has imposed an export tax that brings price increases everywhere and this is not something you can stop by taking top-down measures. Even the reduction of VAT has not brought in other countries any result in reducing the price," Rama said.

While today the Head of the IMF, Yan Sun said" We see the issue of price increases as transitional, the state should target those who suffer the most from price increases, we are against broad-based subsidies, as they are not equal. Targeted support for low-income households, wide-based subsidies, may encourage more energy use. We as the IMF are against temporary tax changes, the reduction of VAT does not translate into lower prices, and gives benefits to those who do not need fiscal assistance," said  IMF Head Yan Sun.

/Klara Ruci/