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Who is increasing consumption, tourists or locals?

2024-06-03 14:22:21Biznes SHKRUAR NGA REDAKSIA VOX

Who is increasing consumption, tourists or locals?

Gross revenue in the state budget from Value Added Tax is growing progressively. The official data of the Ministry of Finance show that in 4 months, taxes and customs have collected 71.6 billion ALL, with an increase of 11.3 percent compared to the same period of the previous year.

While only for the month of April, the realization of revenues from gross VAT registers an increase of 19.5% compared to April 2023.

What is noticeable is that the revenues collected by the tax administration, that is, which show the consumption in the country, have had the biggest increase, with nearly 23.2 percent in 4 months and 40 percent in the month of April. Expressed in value, there are 24.2 billion ALL collected for January-April, with a jump of 4.6 billion ALL, a figure which translates directly into increased consumption during this time.

This consumption comes as a result of the price reduction during this year compared to 2023, when inflation was still at high levels, which has pushed citizens to increase consumption. This consumption is also related to the increase in salaries in the administration but also in the private sector, which has given citizens more opportunities to spend.

On the other hand, despite the tourist boom recorded last year, 2024 has started even better, thus contributing to the overall consumption in the country. INSTAT data show that during this period the number of foreign tourists who visited our country was recorded at 2.3 million, or 38.2 percent more than in 2023.

On the other hand, despite the devaluation of the euro, VAT revenues from customs have also increased in 4 months by 6.1 percent, due to the increase in the volume of imports, being recorded at 47.4 billion ALL.

Throughout this period, the amount of reimbursement of businesses by the government has also increased significantly, a figure which is recorded at nearly 4.5 billion ALL, but despite this, the net VAT results again in a positive trend and in an increase of 10.8 percent compared to 2023. Specifically, in January-April 2024, the net collected VAT reaches 67 billion ALL from the 60 billion it was in the 4th month of 2023.


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