The budget of 2016 resulted as a total failure for the government, which saw €100 million evaporate from the plan they approved.  While the program of budget income was reduced initially with 4 billion Leks last September, this did not stop the free fall, which has worsened during the last months of 2016.

Official data from the Ministry of Finances show that 2016 closed with an income deficit of 9.5 billion leks, equal to nearly €70 million.

This deficit is added to the four billion Leks that were cut in, meaning that the government lost 13.5 billion Leks or €100 million in total for 2016.

The hole from duty taxes

The detailed data show the highest failure came from the lack of income from customs and tax administration. According to figures, the fiscal administration gathered 6.4 billion Leks or 47 million Euros less than the annual budget plan.

The most negative experience was that of VAT, which had a 6.5 billion Leks (€50 million) deficit compared to the program. The runner up for the most negative performance comes from the excise, with 2.7 billion Leks less than planned.

Smuggle flourishing

VAT and excise are the two most important taxes of the budget, which measure not only the temperature of economy but are also the clearest signal that indicates what’s happening with the evasion and contraband.

VAT is the tax which measures the goods and services circulation in an economy. Non-fulfillment of income from VAT indicates that goods and services have been traded less and the business activity has declined. The government rapports an economic growth, but gathers les tax income, which measures economy’s temp.

Decline of income from VAT signals increase in the fiscal evasion, which is shown also by the deficit of 20 million Euros from the excise income.

Syri.net