Proposed reduction of fuel tax, Economy Committee rejects Enno Bozdo's initiative

The Economy Committee did not approve the draft law submitted by MP Enno Bozdo to reduce the fuel tax. This is justified by the fact that the initiative was considered premature and outside the framework of general fiscal reforms.
The initiative aimed to reduce the circulation tax by 20 lek per liter, returning it to the 2013 level, with the aim of reducing the final price of fuel for consumers. According to the proponent, the measure would help families and businesses cope with price increases, influenced by the international situation and tensions in the Middle East.
During the committee discussions, Bozdo argued that Albania ranks among the countries with the highest fuel price increases, while emphasizing that intervention in the circulation tax would bring immediate relief to citizens. He also proposed other interventions, such as the use of reserves to stabilize the market.
However, majority MPs raised concerns about the impact such a measure would have on budget revenues and fiscal balances.
MP Brunilda Çakerri said that revenues from this turnover tax amount to around 37 billion lek per year and constitute an important source for financing infrastructure and public spending.
She underlined that such tax interventions require a thorough analysis and should be part of well-thought-out fiscal packages, avoiding fragmented decision-making that could create uncertainty in financial planning.
Representatives of the Ministry of Finance emphasized that the government is currently working within the framework of fiscal reforms and the European integration process, where any changes in tax policies are being reviewed in cooperation with the European Union.
In the same vein, the chairwoman of the committee, Milva Ekonomi, stressed the need for caution in fiscal interventions, referring to the recommendations of international institutions for maintaining financial stability in the context of global crises.
In conclusion, the Committee decided to reject the draft law, leaving open the possibility that such issues will be addressed in the framework of future fiscal packages.
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