Following the request for compensation, sent to the Ministry of Finance and the Ministry of Infrastructure and Energy, the National Association of Public Transport and the Association of Urban and Interurban Transport today, through a statement to the media, have requested the removal of VAT for this sector and the review of the excise duty and circulation tax on oil in order to reduce costs from price increases.
Transport associations raise concerns that the increase in the price of diesel from around 145 lek/liter to around 214 lek/liter currently, an increase of approximately 70 lek per liter, has led to a significant increase in operating costs for operators.
In order not to reduce service or increase ticket prices, operators have asked institutions to take 3 measures.
"-Reviewing the fiscal burden on fuel, especially in terms of excise duty and turnover tax;
-Evaluation of a special policy for the public transport sector for the abolition of VAT;
-Application of subsidy or compensation mechanisms, in order to guarantee the continuity and sustainability of this service in the interest of citizens.
Also earlier, in a letter dated March 11, the National Association of Citizen Transport directed the Ministry of Finance, the Ministry of Infrastructure and Energy, and the General Directorate of Taxes to provide compensation for the increase in the price of oil, otherwise operators will be forced to reduce the number of buses in operation.
Full press release
The associations consider it necessary to inform the public and the responsible institutions about the current situation of the public transport sector, which is being significantly affected by the continuous increase in fuel prices and its direct impact on operating costs. Public transport, as a service of particular importance for citizens and for the functioning of the economy, operates under legally regulated tariff conditions and with limited possibilities to cope with immediate changes in costs.
Thus, the increase in the price of oil from around 145 lek/liter before the recent crises, to around 214 lek/liter currently, an increase of approximately 70 lek per liter, has brought about a significant increase in operating costs for operators. This situation is further aggravated by the high weight of fiscal components in the price of fuel, exerting continuous pressure on the financial capacity of the sector. As a result, maintaining the balance between costs and revenues, as well as guaranteeing the same level of service, with the same quality and frequency, is becoming increasingly difficult.
Despite continuous appeals to the responsible institutions, no concrete measures have been taken to address this situation to date. In the absence of immediate interventions, there is a risk that operators will not be able to maintain the current level of operation and service frequencies, with direct consequences for citizens. However, we emphasize that operators do not aim to reduce service or increase ticket prices, but rather to ensure its continuity and quality. In the current conditions, this is becoming increasingly difficult to guarantee without institutional support. In view of the above, we request that the responsible institutions take concrete and immediate measures, specifically:
reviewing the fiscal burden on fuel, especially in terms of excise duty and sales tax;
evaluating a special policy for the public transport sector for the abolition of VAT;
the application of subsidy or compensation mechanisms, in order to guarantee the continuity and sustainability of this service in the interest of citizens. /Monitor.al/
