PD prepares the governance program 2025-2029/ Economic growth, in focus

2024-05-31 10:35:00, Politikë CNA

The Departments of Economy, Public Finance and Entrepreneurship are finalizing the drafting of the governing program 2025-2029.

Under the direction of the coordinator of the economic program, Dorjan Teliti, their work so far was presented.

The main focus is the comprehensive economic growth of the country, which according to experts of the departments will be based on several main pillars.

DP's proposal:

1. Ecological and digital transition, work and social rights.

- Economic growth will be supported by a simple fiscal system with low rates, intertwined with simplified bureaucracies, understandable and accepted by all market actors.

- Drafting of an integrated national and regional development strategy, in accordance with the EU Integration agenda.

- Economy freed from corrupt practices and clientelism.

- The creation of a Development Bank with state capital and the contribution of guarantee schemes of international donors, which will finance at a minimal cost all projects that are considered priority for development such as start-ups of young people, development projects, projects of Albanian immigrants who will return to their homeland.

PD prepares the governance program 2025-2029/ Economic growth, in focus

2. Deep reform of the current fiscal system by simplifying it to facilitate consumers and businesses. Increase in the interest of foreign investors.

- Reducing the number of different tax rates.

- Implementation of a flat 10% tax on capital.

- Implementation of the 10% tax on income from work, excluding the first 50,000 ALL. Progressive taxation is abolished.

- 10% tax also on non-salary income.

- Zero taxation on free professions and small business.

The annual ceiling for zero profit tax for small business will be 18 million ALL, while the VAT exemption limit will be 14 million ALL annual turnover.

Reduction from 15% to 2% of property sales tax.

- The "Rama Tax" on fuel will be removed. Each liter of fuel will cost 24 lek cheaper.

- Controls based only on risk analysis, with little bureaucracy. Simplification through ICT will be the watchword of DP governance. Total review of the current system of fines and penalties.

- All fiscal facilities granted by preferential laws will be cancelled.

- The "Law on Strategic Investments" will be completely revised. The new law should target foreign investors and not local ones (friends of the government).

- Real and timely reimbursement of VAT. Stop ministerial discretion.

3. Deep reform by realizing within the first 100 days the calculation and determination of the living minimum in Albania.

4. The individual and the family, priority of the Democratic Party government.

In order to fight immigration and bring young people back to the country, a complete package of fiscal incentives and grants for both young employees and entrepreneurs up to 35 years old.

- Complete support package for young families, from subsidizing interest rates for home purchases, to a significant increase in the baby bonus, to a monthly grant for each child up to the age of 21, tax exemptions for mothers with many children , etc.

5. Albania with a competitive economy in the region, leader in absorbing FDI and exports.

- Competitive Albania - through the support of foreign entrepreneurship and the Diaspora. The increase in productivity, the opening of new jobs for young people, the absorption of foreign "Greenfield" investments, the establishment of four free economic zones. FDI 10% of GDP.

- Support with incentives and grants for digitization to Albanian companies to increase their exporting skills and capacities.

6. Deep reform in public finances and the financial sector.

- PD returns to small but efficient governance.

- Restore real competition in public procurements, cancel any corrupt and clientelistic concessions, remove by law unsolicited PPPs.

Strengthening financial management and control, internal audit and central harmonization will make it possible to increase managerial responsibility and the proper use of public money.

- Special attention will also be given to the strengthening of the capital market and the development of the second pillar of pensions for young Albanians./ CNA