IMF puts pressure on Albanian government over incomes
Xinhua, November 7, 2015 Adjust font size:
The Albanian government is holding tense talks with the International Monetary Fund (IMF) prior to drafting the government budget and fiscal package for 2016, the Albanian Daily News newspaper reported on Saturday.
The IMF has proposed that the Albanian government find ways to increase income, leaving the option of tax hikes open.
But the Albanian government does not want to accept the IMF proposal because, it says, the proposal will translate into political costs and there is no guarantee that the Socialist Movement for Integration (SMI) would approve such a proposal in the parliament.
The negotiations between the Albanian government and the IMF mission which landed in Tirana one week ago are being considered as difficult.
The focus of discussions is the draft budget of 2016 and the accompanying fiscal package. The Albanian government has proposed some changes, such as imposition of excise duties on beer, wine, tires and batteries, and taxes on insurance companies.
The IMF has expressed concerns over the poor performance of income in the budget of Albania, urging the government to take measures to deal with the issue.
It is expected that the IMF mission on Monday will give its findings on Albania's economy at the end of its two-week visit to Tirana. Endi