The risk of pensions/Debt to insurance reached 214 million euros

2024-02-16 08:49:00, Ekonomi CNA

The risk of pensions/Debt to insurance reached 214 million euros

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Social and health insurances come first in the hierarchy of tax and tax payments by individuals and businesses, but year after year we are noticing a debauchery of the responsibility to make the payments.

The creation of obligations in this item not only affects fiscal stability at present, but becomes the cause of a serious social problem in the future.

According to official tax data, the unpaid debts of businesses and public administration in the form of social security reached 22.5 billion lek (214 million euros) in 2023, expanding by 10 percent.

Social security debt has expanded more rapidly in recent years. Compared to 2018, the obligations in this item increased by 63%.

The General Directorate of Taxes referred that last year 141 taxpayers were penalized after they were found to have undeclared employees, of which 55 subjects are of "big business" tax liability and 86 subjects are of "small business" tax liability.

For 2023, the revenues from Social Security and Health Contributions were programmed at 139.9 billion ALL and 139.3 billion ALL were realized, with a non-realization of 645 million ALL or 0.5% less. Compared to the same period of 2022, where the income from the National Social Security Administration was 118.5 billion ALL, the results are increasing by 20.8 billion ALL or 17.6% more.

Social security debt is the worst part of tax debt because of the social drama it carries. Thousands of employees who currently work in the state or in the private sector risk being left without a pension in old age.

The phenomenon is also widespread in public entities. Budgetary units that are administered by local government, such as water supply companies, educational directorates, green cleaning workers, often do not pay insurance, as the funds for this purpose are transferred to other expenses.

Instead of being restrained, this debt is expanding rapidly from year to year, putting in difficulty not only the social security fund, but also pensions in the future.

In the conditions of non-payment of insurance, the state budget must subsidize the pension scheme from common taxes to make payments to the current beneficiaries./Monitor