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There is no progressive tax on carbon, the Economy Commission does not "give the right" to the government's proposal

2023-11-22 13:13:01Biznes SHKRUAR NGA REDAKSIA VOX

There is no progressive tax on carbon, the Economy Commission does not

Although the Albanian government has sent for approval to the Assembly a draft law, which determines the gradual increase of the carbon tax from January 1, 2024 to 2030 as part of the fiscal package for the next year, the Parliamentary Committee of the Economy has not opened the way for this initiative , which is a directive of the European Union, with the argument that companies in this industry will be burdened and competitiveness will decrease.

Part of the industries, for which this tax is expected to be applied, are also industries such as cement and steel, which account for most of the use of coal in Albania, as fuel for their activity.

Eni Zake, Deputy of SP: "The draft law provides for a progressive carbon tax. The goal is not to impose a tax, but to discourage these fuels. But it is unclear how much the real impact will be and how long it will take the industry that deals with the consumption of this material to be attached to other forms of consumption. According to the WB report, it has been determined only for carbon, but it is not clear why it has not been established for other products. The draft law penalizes some enterprises and reduces competitiveness. For this reason, we are not convinced without having a real study of the impact and whether there will be support schemes that will help producers to switch to other forms. Therefore, the law should be passed again for consultation".

The Chairman of the Economy Commission, Eduard Shalsi, has emphasized that companies should be incentivized first to find alternative sources for less carbon emissions in the environment, and then consider imposing a tax.

"The EU has decided that in 2026 a tax will be paid per ton of carbon emissions. In order to stop the use of coal, companies will have to find alternative sources that pollute less and for this they must make investments. Companies should be encouraged and given time".

 

 


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