The government is not contemplating a decrease in Value Added Tax, nor is it planning to abolish excise duties on financial derivatives. Minister Mimoza Kusari affirmed this stance, explicitly stating that the release of VAT and the removal of excise duties on derivatives are not under consideration. Instead, the administration is focusing on tackling concerns surrounding profit margins to combat potential exploitation.
Minister Kusari highlighted that Value Added Tax has never been a viable solution due to its inherent challenges in oversight. Because VAT is a tax paid by citizens, its removal could lead to prices remaining unchanged. Economic operators would not necessarily reduce costs, and there’s no established system to enforce a price cap on other goods.
Concerning excise duties, the government remains committed to maintaining their current structure. The focus remains on preventing abuse and ensuring market stability. The administration’s priority is to address the core issue of inflated profits, rather than altering the existing framework of vat and excise.
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