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Ekonomia

Doubling the beer excise, the economic expert raises the alarm: Domestic production is in danger of disappearing

Doubling the beer excise, the economic expert raises the alarm: Domestic

The Secretary for Finance and Economy Affairs in the Freedom Party, Petraq Milo, in a statement to the media, has raised the concern of the association of producers of alcoholic beverages for the doubling of the beer excise duty.

The economic expert stated that the doubling of the excise duty has caused an increase in costs, financial difficulties, and as a result, a decrease in production and a decrease in the workforce.

"Beer production in 2023 has decreased by 11%, while employment has decreased to 15%. On the contrary, we have the increase in imports, which have replaced the decrease in domestic production, which risks its disappearance", said Milo, among other things.

He also stopped them from taxing free professions, where he stated that not only has their fiscal burden increased, but they were discriminated against in comparison to other tax payers.

Full statement:

Hello!

The Freedom Party has warned about the negative effects of the fiscal policy. The increase in the fiscal burden would affect both the reduction of employment and the production of producers, mainly of alcoholic beverages.

The increase in excise duty, its doubling, has caused problems for brewers, small producers under 200 thousand HL.

This has caused cost increases, financial difficulties, and as a result we have reduced production and reduced workforce.

According to the Association of Alcoholic Beverage Producers, beer production in 2023 is down 11%, while employment is down 15%. On the contrary, we have the increase in imports, which have replaced the decrease in domestic production, which risks its disappearance.

The Freedom Party is engaged in its program to support producers, and mainly small producers, through a lower fiscal burden, and at the same time their economic support.

The second moment is that the Freedom Party has also warned of the risk of increasing the fiscal burden for free professions.

Free professions, not only increased their fiscal burden, but were discriminated against other tax payers. Today, the free professions, over 14 million, are burdened with a 23% tax burden, which is many times higher than the tax burden, either for small business or for large business.

This has caused as a negative effect, immediately at the beginning of 2024, in the first 4 months, the departure of 3620 individuals, who have closed their activity.

According to specialists, this number will be even higher, if the Constitutional Court gives a negative attitude, a negative opinion regarding the extreme taxation of free professions.

The Freedom Party has maintained this position, warning that the increase in the tax rate for free professions would not only lead to their excessive burden, compared to other tax payers, and their discrimination, but at the same time would make it difficult even more so, the financial condition of this layer.

The layer that needs to be encouraged, so that there is a support.

The other risk of this fiscal policy regarding free professions will be the even greater increase in informality. According to specialists, not only will this number not decrease due to the closure of their activities, but a significant increase in free professions is expected, which will be forced to close their activities.

Thank you!