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Proposals for the support of Albanian Entrepreneurship

Referring to the approach and model of intervention in the economy of different governments, as well as the measures they are taking to prevent the crisis from paralyzing the local economies, in consultation with the manufacturing enterprises, a package of proposals has been drawn up which basically aim to guarantee non-threatening jobs for employees and ensure the necessary liquidity for productive industries to face the crisis during the state of emergency.

Attached to the photo you will find 10 points which are proposed for the success of manufacturing enterprises.

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First Assembly Meeting 2020

This Friday, on January 31, the Assembly of the Albanian Manufacturers Union was convened. The purpose of the assembly was to highlight:
1- Last year’s annual work.
2- To discuss the achievement of the objectives and the completeness of the 2019 plans.
3- The manner and form of management of unexpected situations in terms of time and cost, such as the earthquake of November 26.
4- The 2019 budget project.
5- How and what awaits us in 2020.

After discussing the past year topics related to the various problems encountered by the businesses of the various economic sectors of the Albanian Manufacturers Union were presented at the discussion table. The members of the assembly talk about the causes that affect their businesses and how they can solve these problems in order to grow their enterprises economically. This discussion was joined also by the Former Minister of State for the Protection of Entrepreneurship, Mr. Eduard Shalsi, who explained how the problems of various enterprises can be solved and gradually improved.

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Earthquake Emergency

On November 26, 2019, the Albanian Manufacturers Union built the first canteen in Thumane with a capacity of 400 people to provide the affected families with hot food cooked on site for the next day.
We thank the Albanian producers who contributed to the construction of this space.
Once again, we express our condolences to the victims of this disaster and we hope that this is the end of it. We will continue to offer our help in other ways as well.

On the second day in the Thumane emergency camp, in the canteen built by the Albanian Manufacturers Union, where Mr. Bledar Kola, one of the most popular cooks in our country, together with his staff, has given his contribution today by preparing hot meals for the residents of the area.
The family members of Thumane are going through very difficult days, everyone’s solidarity is needed to help these residents get through this dark period as easily as possible!

On the last (fourth) day of the first phase of our contribution to help the residents of Thumane. We hope that we have been a help in this difficult period for every family there. We thank you for the great support of all the members of the Albanian Manufacturers Union who made this possible, Bledar Kola and his chef friends, Arditi and Klajdi, who joined our initiative by cooking several days in a row without getting tired. We thank you the Armed Forces who assisted usand helped during the preparation and construction of the tent and for which we should all be proud as they undoubtedly remain the best part of this place. A special thanks to Mentor Kikia and his volunteers, as well as Don Enzo Zago and the Parish of Blinishti for their tireless volunteer work. We are temporarily separated from Thumana to return to the second phase of reconstruction after the evaluation process and the drafting of the reconstruction plan for the area are completed. The Albanian Manufacturers Union and its members will continue to remain engaged and attentive to any immediate needs that residents will present during these days until the situation stabilizes.

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Convention of the Albanian Manufacturers Union

On November 15, 2019, was held the 1st Convention of the Albanian Manufacturers Union.
The main purpose of the Convention is the further promotion of local production and discussions regarding the challenges or problems that concern local industries. The convention brought together for the first time the most important domestic manufacturing industries creating an open discussion platform.
The main topics discussed during this convention were: “Increasing the competitiveness of Made in Albania products” and “Challenges of domestic production in the context of Industry 4.0″.
Invited to discuss these problems were more than 100 local entrepreneurs, various ministers of the government cabinet and representatives from the international chamber.

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Fair “Albania Works the Land”

On November 16-17, 2019, took place the largest agri-food fair in Albania “Albania Works the Land”.
For the first time, the Albanian Manufacturers Union participated in the organization of this event, from which 25 large businesses were invited to show and promote even more local production. Many associations known to everyone, such as Amita and Golden Eagle soft drinks, Tirana, Elbar and Stela beers, Qafshtama, Glina, Lajthiza and Spring water, Çobo, Nurellari, Belba and Balaj wineries along with many other businesses like: Tapet Bari Natyral, Gjirofarma, Albanian Herb, Alb Inspekt, Fertileva, Zdravo gave numerous shows for children and attracting attention among the citizens. There was also an agrotourism show, where various specialties were cooked live on the most popular agrotourisms in Albania, some of which were Mullixhiu and Mrizi i Zanave.
During the two days of its organization, the fair is believed to have gathered over 10,000 young men, women and children who came, saw and enjoyed Shqip. Minister of Agriculture and Rural Development Mr. Bledi Çuçi, as the main organizer of this event, was present and visited the stands of farmers and businesses during both days, accompanied by the mayor of Tirana, Mr. Erion Veliaj dhe Kryeministri i Shqipërisë Sh.T.Z. Edi Rama.
Success was guaranteed in this third edition of “Albania Works the Land”!

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Here’s how you can pay your tax obligations in installments

The General Directorate of Taxes brings to the attention of all taxpayers, who have unpaid tax obligations and have met the legal conditions, that they can sign an Installment Payment Agreement with the tax authority.

The taxpayer, in order to benefit from this facility, must justify temporary financial incapacity.

The installment payment agreement may be carried out concluded for tax liabilities imposed by the tax administration to a tax assessment.

The installment payment agreement cannot be concluded for the tax liability self-declared by the taxpayer, which has been calculated, or collected, or withheld by him, including social and health insurance contributions.

The installment agreement cannot be extended beyond the end of the year following the year in which it was concluded. In cases of agreements for payment in installments, the taxpayer pays interest on arrears, but no penalty is calculated for late payment.

The steps to follow to sign an installment payment agreement are:

Step 1

Written request addressed to the Regional Tax Directorate under whose jurisdiction it is registered. (Explain the circumstances and reasons why it is required to conclude an agreement to pay tax obligations in installments.)

Step 2

The Regional Tax Directorate within 10 days announces whether the request is accepted or rejected.

Step 3

If the request is accepted, the agreement for payment in installments of unpaid tax obligations is signed. This agreement is signed by the taxpayer and the director of the regional tax directorate or the head of a similar unit, only if the taxpayer immediately pays 20% of the value of the obligation, for which the installment payment agreement is connected.

With the conclusion of this agreement, taxpayers through the E-filing module have the right to follow its situation in real time and generate a “Payment Order” dedicated only to the installment payment plan. In this case, the payment will go only for the period / periods defined in the next installment.

We bring to your attention that the Tax Administration interrupts the measures of collection by force, of the collection of tax obligations, but it does not withdraw the measure decided to ensure the payment of the tax obligation. The signing of an agreement for the installment payment of a tax liability does not interrupt the calculation of interest for late payment of the unpaid tax liability.

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Regional B2B event, Skopje 2019

Yesterday’s on September 8, 2019, in Skopje, took place for the first time, the regional B2B event with the aim of meeting between companies of three countries, from the Republic of North Macedonia, the Republic of Kosovo and the Republic of Albania. The dominant companies in the activity were part of three sectors: construction and building materials, food production and retail trade.

With the invitation of the Chamber of Commerce of North-Western Macedonia, which included the organizers of the activity, Mr. Sokol Kraja.

In this activity, in addition to B2B meetings between companies, an Economic Forum was also organized, divided into two panels with the following topics: “Trade facilitation through institutional cooperation between North Macedonia, Kosovo and Albania” and “Possibilities of cooperation, investments and joint approaches” in the regional and wider markets”.

The goals of this great regional event were: a good opportunity for entrepreneurs from the three countries to promote their products and services, opportunities for cooperation between companies in the most important sectors; opening of new opportunities in the three markets that will be able to be expanded at the European level as well as new regional collaborations.

The Prime Minister of the Republic of North Macedonia, Mr. Zoran Zaev, in his welcoming speech, focused mainly on the opening of talks as a very big priority for North Macedonia and Albania, since the EU’s aid to these two countries will be very large in funds, which then they will address the economy of these countries in the form of aid, investments in the economy, etc.

During the activity, there were questions and complaints from entrepreneurs present, for the Customs Directorate of North Macedonia and Albania, regarding the delays at the customs terminals. The activity was developed in the spirit of regional cooperation but also complaints that it is moving too slowly in this direction.

The Albanian Manufacturers Union received a decoration from the organizers of the event.

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Foreign Trade, August 2019

According to official INSTAT data, in August 2019, exports of goods reached the value of 20 billion ALL, decreasing by 2.0%, compared to the same period a year ago and by 27.8%, compared to July 2019.

Imports of goods reached the value of 52 billion ALL, increasing by 6.8% compared to the previous year and decreasing by 13.7% compared to July 2019.

This month’s trade deficit is 32 billion ALL, increasing by 13.3% compared to August 2018 and decreasing by 1.6% compared to July 2019.

In the first eight months of 2019, exports of goods reached the value of 200 billion ALL, decreasing by 2.5% compared to the previous year, and imports of goods reached the value of 429 billion ALL, increasing by 3.1% compared to the previous year. The trade deficit reached the value of 229 billion ALL, increasing by 8.6% compared to the same period of 2018.

The contribution of the main groups to the annual change in exports

The annual decrease of exports of 2.0% this month was influenced by the following groups:

  • “Minerals, fuel, electricity” with -9.1 percentage points;
  • “Construction materials and metals” with -4.1 percentage points;
  • “Textiles and shoes” with -1.4 percentage points.

The following groups have had a positive impact on the annual change in exports:

  • “Machinery, equipment, spare parts” with +9.1 percentage points;
  • “Chemical and plastic products” with +2.1 percentage points;
  • “Food, drink, tobacco” with +1.2 percentage points.

Exports, during this eight month period, decreased by -2.5%, compared to a year ago.

The groups that have had a negative impact on the annual decrease in exports are:

  • “Minerals, fuel, electricity” with -4.0 percentage points;
  • “Construction materials and metals” with -2.0 percentage points;
  • “Textiles and shoes” with -0.9 percentage points.

The following groups have had a positive impact on the annual change in exports:

  • “Machinery, equipment and spare parts” with +1.8 percentage points;
  • “Food, drink, tobacco” with +1.4 percentage points;
  • “Chemical and plastic products” with +0.7 percentage points.

Mbi të dhënat statistikore të importeve shihni dokumentin.

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Businesses request the postponement of fiscalization, otherwise the costs will be high

Speaks Mr. Arben Shkodra, Secretary General of the Albanian Manufacturers Union for Monitor magazine.

Before I present our concerns as the Union of Producers, I want to make a parenthesis: The Albanian economy “cannot escape” digitization, as it is a process that will happen very quickly even in the European Union, in 2021, where it will begin to implement 5G technology, which is 10 times faster than the current system.

The Internet will again be the vector, but for us the way of doing business will change, the approach to other intermediary actors such as: banks, insurance companies, service providers, etc. will change. There will also be new developments in the way of managing a business and the way of solving problems.

This digital revolution, which in economic language is called the “Fourth Industrial Revolution” or “Industry 4.0”, will irreversibly change the physiognomy of the world economy and, as a consequence, of the Albanian economy as well.

To return to your question, regarding the Government’s recent initiative to digitize the fiscal system, the approach at this moment presents several risks, which have turned into concerns for entrepreneurship. This process consists mostly of three actors:

The first actor is the government (the state), which has the task: first – to design the innovation strategy and create a digital agenda, secondly – ​​to invest public funds in the construction of a serious infrastructure that enables the implementation of this strategy and digital agenda and, thirdly – ​​to educate and train the public administration to approach this challenging process in the best possible way and with dignity.

Several questions immediately come to mind: Do we have a national index today in terms of the level of introduction the information technology? How much is the planned budget for each spending unit in the Albanian state for digitization and innovation? What is the positioning in the global index for innovation? Is the current public and private infrastructure harmonized? What are the current capacities of this infrastructure? At what level is the internet coverage nationwide and what is the quality of this product in Albania? What is the level of knowledge of our public administration regarding this process?

The second are intermediary actors, which include telecommunication companies, IT and service providers that will be integrated in this process, second level banks, etc. In this case, we do not have a clear picture if these actors are prepared for such process and if they are ready, with all the necessary infrastructure, to face the implementation phase. In our knowledge, in order to guarantee a perfect operation of the process, these actors must make a series of quite small investments, taking into consideration that the initial expenditure for the Albanian government for the construction of a platform was about 15 million euros.

The third actor is the Albanian enterprise which, firstly, was not consulted by the company that built the platform. As we know, the physiognomy of our economy and the profiles of enterprises present their own problems, based on the sectors where they operate. Access to the national economy of an enterprise whose basic activity is collection, recycling and production is not the same as an enterprise that imports and trades, or an enterprise that offers tourism or construction services. Taking into account this element, we should be taken not only in the design of a strategy or legislation but, above all, of software platforms which then automatically perform not only monitoring, but also the provision of online services. Also, we did not have enough time for consultation, since in August, not only the company but also the consulting experts who should work, were on vacation.

Some of the first concerns as a manufacturing enterprise:

We are moving towards the digitization of processes that were previously done physically, but we do not have concrete examples, e.g. how the billing will work from the warehouse of an enterprise to the final consumer, taking into account all the links of the process and the problems of the market.

How electronic invoicing will work in the case of import and export. How the corrections and cancellations procedure will work. A rather big problem appears in the determination of the daily balance of the treasury, since the values ​​proposed in the draft law do not correspond to some specific sectors or enterprises.
How will a transaction work in areas where there is clearly and continuously no internet coverage.

Our proposals:

Information and communication should start immediately with the enterprise according to specific sectors, by organizing workshops This would bring an additional information not only to the builders of the platform but also to the drafters of the draft law, in order to make the necessary corrections.

The implementation of this system on a national scale should be postponed until 2021, making a pilot project only for Tirana, which is about 1/3 of the enterprise, where the infrastructure does not present many problems and the quality of the Internet is satisfactory. During this testing year, fines should not be applied, but problems should be identified and solutions should be provided.

The extra costs the business will face

  • changing the POS system;
  • setting up new programs;
  • system maintenance;
  • 40 euros for the digital signature;
  • staff training costs.
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The Governing Board of the Albanian Manufacturers Union meets

The members of the Albanian Manufacturers Union have held the fourth meeting of the Board of Directors for 2019. In this meeting, were discussed the activities developed so far for 2019, as well as the issues and problems addressed in this period.

During the months of January-September 2019, there was a diversity of activity developments, which included:

  • Assembly/Board Meeting;
  • Developments of policy committees;
  • Developments of sectoral tables;
  • Hearings in parliamentary committees;
  • Public communications.

Issues addressed

  • P. Law on Law no. 9975, dated 28.7.2008 “On national taxes”;
  • P. Law on the Criminal Code _Food Safety and Environmental Pollution;
  • Guidance of the industrial waste supply scheme;
  • For an amendment and addition to the VKM “For the creation of the Albanian Competitiveness fund” – NMV;
  • On trade relations between Albania and Kosovo (problems of the beer industry);
  • Albania – Turkey Free Trade Agreement;
  • Draft Law “On the Invoice and Circulation Monitoring System”.

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