Yesterday the government made the decision. The tax jumps to 22 percent. Bread, tobacco... everything will be more expensive Nano: Tighten your belt VAT and all prices are being raised PS deputies oppose it. But the fiscal reform was made unavoidable by the IMF. Traders in trouble TIRANA - The government has signed off on price increases. Yesterday Nano gathered all the ministers and they decided to comply with the IMF, by signing all the conditions imposed by this foreign financial institution. VAT has jumped to 22 percent and this will very soon lead to higher prices for all goods. Bread, oil... even cigarettes will now cost more. But the Nano government's decision has not been well received by the Socialist deputies in Parliament themselves. The group from the party that won the 29 June elections immediately expressed dissatisfaction with this fiscal reform, believing that it would create a social and political crisis. PS deputies proposed that VAT should be no more than 20 percent, while others from the same group thought that this tax should be lower than 22 percent for food products. Yesterday at the government meeting, it was decided that excise duties would not change and that their value would remain as it was. Very soon the effects of this reform will be felt, and in the end ordinary consumers will themselves be the inevitable victims of this fiscal "storm". On page 2 Usury in the government

What does VAT mean for us? TIRANA - We will all fill the state budget little by little. At yesterday's meeting the government decided that VAT (value added tax) will change from 12.5 to 22 percent. In this way the IMF’s wish is fulfilled, the state coffers are filled, and our pockets are burdened. As soon as Parliament approves the changes, every time a good changes owner, the state will benefit from 22 percent of the price difference. So if a product enters the border with an initial value of 100 lek, the state takes 22 lek. When the trader sells the product to the wholesaler at a price of 150 lek, the state takes 22 percent of the 50 lek difference. When the product finally reaches the retail customer at a price of 160 lek, the state will take 22 percent of the 10 lek difference. In the end every trader will pay the state 22 percent of the income earned from their activity. Traders, in order not to reduce their profit, will charge the same amount they pay more to the state. Meanwhile the consumer, every time they buy, pays the trader the profit plus the amount of the taxes the trader pays to the state. In the end, traders too will pay more than they used to. Even if they earn the same income as before, they will pay more tax to the state. The final result is that prices will rise for everyone and from now on there will be no exceptions. Even bread and food products must pay VAT. By calculating the price increase at every stage, the change in the price of bread will be the most noticeable. Linda Saphia

KRUJE Bullets for police officers, masked men kill one On page 5

ASSAULT Explosives in Shkodër: Two premises blown up On page 5

PROTEST The capital's water: Sewage in the pipes On page 4

They meet by chance in Calcutta TIRANA - Meidani and Berisha shake hands thousands of kilometres from Albania. The two statesmen greeted each other and then shook hands. This is the first meeting between Berisha and Meidani, but with the difference that it took place on another continent. Yesterday the former Albanian president told the press that "by chance, in a waiting lounge at Calcutta airport" Meanwhile, sources close to the delegation confirmed to ATSH the handshake meeting between the former and the current president. "It was Rexhep Meidani who stretched out his hand first to Berisha," said sources close to this Albanian gentlemanly exchange. A brief greeting between the two Albanians was enough for the long trip back to Albania to be accompanied by comments and much buzz about the Calcutta meeting. Meidani

The Greek government will begin issuing permits in November TIRANA - Hope is increasing among Albanian emigrants in Greece. Not long from now, all Albanians on its territory will be provided with the green card that will give them the opportunity to live and work, at least initially, for 9 free months in the neighboring country. A residence permit without being too on paper or envisaged to be iacare - will be "given" by the Greek authorities in September '98. According to the state news agency, the Greek President will also gain an extra month from this moment to decree two laws that will allow emigrants to breathe freely in Greece. Athens' initiative in favor of Albanian refugees comes immediately and only a few days after the contradictions that Albania is experiencing with the other neighboring country, Italy. A few days ago, Prodi and Nano exchanged statements, which do not seem to lead to a solution of the delicate issue of Albanian emigrants across the Adriatic. More than 300,000 Albanian refugees live in Greece. On page 2

Kabashi wins "Golden Sphinx" TIRANA - Mirush Kabashi wins the "Golden Sphinx". The well-known Albanian actor has been chosen as the best at the international experimental theatre festival held in Cairo. The competition, which ended on Thursday, brought together 53 troupes from all continents, who poured their most unconventional efforts into the Egyptian capital. Albania was one of ten countries able to enter two representative troupes in the competition. On page 8

LEZHE Winter watermelons take over the beach An unconscious experiment on the Shëngjin coast LEZHE - Plants sprout artificially in the laboratory, their fruits can be made available in any season, but no one can believe that the people of Lezha will enjoy watermelons in winter. Over a stretch of five kilometres from the Port of Shëngjin to Kune, the once-absorbing beach has turned into a field. The entire longitudinal strip has given way to watermelon plants. They spread alongside the other dirt covering the beach sand, which has not been removed for a long time. It seems the plants like this environmentally friendly fact, to bear their fruit in December, at least that is what the farmers of the area promise. But how did the seeds sprout? During the months of July and August, beachgoers reached their peak. Coming from all around the area, but also from the cities of Tirana and Shkodër, beachgoers did not prefer the cafés and brought food with them. Among it were seasonal fruits, among which watermelon dominated as the cheapest. Its seeds and rinds were thrown carelessly into the sand, and later no one remembered to remove them. Meanwhile the beach was closed for a few days because of the bad weather. The heavy rain that flooded Lezha and Shëngjin seems to have been the best food for them. The stillness of people for a few days as well as the warmth of the weather created the right conditions for the seeds to sprout. Although the farmers- Irfan Rama

Draw date 30 September '97 directly on TV First prize 1 million lek

Announcement by the company SILVA The company "Silva" informs all its creditors that from 15 September 1997 until further notice, it will not carry out any payments, since during this period transactions with banks have been suspended in the framework of TRANSPARENCY, a process that will certainly be a help in solving problems between the individual, the company and the State.

WE REPAIR AND SELL Rr. "Durrësit" opposite the former Court ColorLab phone - Fax - Photocopies Regular phone 16 - Computers - Printers From 16.09.97 onward, photocopies for pupils, students, teachers and state administration employees are 44 for 5 Lek/page