Besimi says that they follow the requests of the citizens, but the Government has not yet made a decision to reduce the VAT on electricity

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The government has not yet decided to introduce an environmental tax and reduce the VAT on electricity, but comprehensive analyzes are being made regarding the government’s environmental agenda for green transition, investment in renewable energy sources and the creation of an Environmental Fund, said the Minister for Finance Fatmir Besimi, answering a journalist question whether the supplementary budget envisages the introduction of an environmental tax of four denars and a reduction of VAT on electricity from 18 to five percent and how it will affect the budget.
– It is not about increasing excises, but about environmental taxes, which include oil derivatives. The Government has not yet made a decision on this measure. It is an agenda adopted in the EU, it is the Paris agenda for green growth, and also the part of the green agenda of the Western Balkans that was also adopted and recommended by the EU last October. And we have accepted it as a Government. Once a comprehensive analysis is made, consultations will follow with the chambers of commerce, as well as with other stakeholders affected by the measure, and then we will make a decision. We will do the same in terms of reducing the VAT on electricity. We follow the trends and requests of the citizens, and after the analysis and discussions with those covered by the measure, we will make a decision, said Besimi.
He did not confirm whether these measures will be included in the supplementary budget and will take effect on July 1.
– We have not yet made a decision of the Government, pointed out Besimi.
Regarding the amount of public debt and whether it will be 64% of GDP by the end of the year and will reach eight billion euros, Besimi said that by the end of the year the government debt is projected to be 52.3% of GDP, and public debt 62.4.
– We announced that last week when the Fiscal Strategy and the Public Debt Strategy were adopted. But at the same time, there is a plan for fiscal consolidation in the medium term, how to return the debt to 2026 to the level below 60 percent of GDP. What is happening now is angered by the global economic crisis caused by the Covid-19 pandemic. In all countries there is an increase in the budget deficit and public debt. There are countries where debt is significantly increased. “What we anticipate in the next period is, in addition to the recovery of the economy, to have accelerated economic growth, with one investment plan,” said Besimi, adding that the goal is to achieve an average of five percent annually with accelerated growth in the next five years.