The government fails with the tax on dairy products – Businesses were damaged, and it is now proposed to remove the tax for whey and cream milk

The government has withdrawn the “experiment” of imposing a tax on milk whey and milk cream. On the same day that the 2023 budget and a portion of the fiscal package were approved in Parliament, a draft law was submitted for discussion in parliamentary committees for some changes to the law “on national taxes,” which were not treated in conjunction with other tax changes.

According to the draft law, the imposition of the milk whey tax has influenced the increase in product costs for exporting companies, which use it as a raw material for the production of their products.

This increase in costs has made Albanian products less competitive, mainly in international markets. In this context, this draft law is also proposed, which provides for the removal of the tax on the milk whey product and the milk cream tax.

In this regard, it is emphasized that during this year, in which these taxes were applied, there were many requests for their review by exporting entities that use milk whey as a raw material for the production of products such as croissants, cookies, and other categories of this nature.

An assessment of the revenues collected in the budget from these taxes has also been made, resulting in low levels of approximately 13.6 million ALL for the period January–September 2022, with a total of 18 million ALL expected throughout the year.

For this reason, the government has decided to reverse the decision taken at the beginning of the year in order to encourage the production of local products and their export to international markets. The tax for the import and production of milk whey, or milk cream, has been applied in the amount of $150 per liter.

 

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