Confusion over the forgiveness of administrative fines and the strategy for taxes on pensioners' assets

2025-07-05 08:50:00, Ekonomi CNA

Confusion over the forgiveness of administrative fines and the strategy for

Confusion over the forgiveness of taxpayers' and individuals' obligations was also created by two other government initiatives. First, was the entry into force of the decision to abolish administrative fines imposed from January 1, 2025 to November 30, 2024.

This pardon created confusion among individuals and businesses, especially for the implementing institutions involved, such as: the National Inspectorate of Territorial Protection (IKMT), the National Food Authority (AKU), the State Police and the Municipal Police.

The decision came into effect 3 days before the local elections. The VKM determined the procedures to be followed by the above institutions and citizens for fines that had been abolished through a law that had entered into force in December 2024.

Through the law "On the repeal of administrative measures imposed from January 1, 2015 to November 30, 2024 by local territorial protection inspectorates, the national territorial protection inspectorate, the national food authority, the state health inspectorate, as well as the State Police and the Municipal Police", it determined the forgiveness of fines for individuals and businesses, for unauthorized construction or interventions without prior notice, both in residential buildings and business activities, mainly in livestock.

It also provided for the forgiveness of fines for those who did not comply with the rules during the Covid-19 pandemic.

Another strategic document published by the Council of Ministers raised the perception of waiving taxes and fines for vehicles owned by pensioners.

Among several fiscal incentives that were projected to be undertaken for the elderly by 2030 in the "Political Document on Aging and Action Plan 2025-2030" was the abolition of the annual tax on private vehicles for seniors over 65 years of age and the reduction of fines and late payment interest.

The strategy was accompanied by misunderstanding and reactions as many debtor pensioners thought that the forgiveness would be implemented immediately. Concerns about the wrong perception after the publication of the strategy were raised for Monitor by the General Directorate of Road Transport Services (DPSHTRR), as nationwide by June 2025, there were 249,882 debtor vehicles, where a large part of them were owned by pensioners.

The total amount of unpaid debt for the annual used vehicle tax (TVMP) and luxury vehicle tax (TVML) amounted to about 17 billion lek, or approximately 170 million USD, with obligations dating from 2012 to June 2025.

Given the high number of vehicle tax debtors, the DPSHTRR began calling on debtors to settle outstanding obligations.

Since January, as an operational part of the debt collection plan, it also included sending personalized messages via e-Albania, where the debtor was notified of the unpaid amount of car taxes (including principal, fines and late interest).

Furthermore, the debtor owner of the vehicle is not offered any of the road transport services, including vehicle registration or procedures for changing ownership.

The plan of measures also included the sending by the General Directorate of Road Transport Service at the beginning of the year of the complete list of debtors to the Regional Tax Directorates, with the aim of taking measures to collect unpaid taxes on cars from businesses, as well as to the Regional Police Directorates by region.

Where for recorded cases of vehicle circulation without a roadworthiness certificate, the driver is penalized with a fine or vehicle seizure.

Debtors' data has also been sent to the Municipalities, which are the collectors of 25% of annual vehicle taxes./ Monitor Magazine