A sensational discovery while comparing the Presidency’s secret file with figures from the Ministry of Finance More taxes for citizens to conceal smuggling Tax revenues exceed the target, customs lose USD 80 million Tax revenues from the market partly make up for the loss caused by customs tax evasion. Meanwhile, the burden of the state budget weighs ever more heavily on citizens. Over the past five months, revenues from tax offices have consistently exceeded the target. During the same period, smuggling is said to have swallowed up a full 80 million dollars from the state. Most of the tax revenue collected comes from VAT, at 3.38 billion lekë. Value-added tax is the tax that contributes most to rising prices. At the same time, it is squeezing domestic businesses, especially small businesses. Sources at the Presidency confirm that Meidani asked the General Directorate of Customs for detailed data on 13 imported products, which are also the main targets of smuggling. The compared figures reveal the scandal of a loss of 80 million dollars in just a few months. At the top of the smuggling list are products that now pass incognito through the gates of the Albanian state, such as cigarettes, fuel and coffee. But iron and flour are involved on a similar scale. Despite the construction boom in Albania, the recorded revenues from iron are extremely low. The surprise is that large wholesalers are also involved in smuggling. Considering that the customs duty on iron is only 5%,

The balance sheet Who laughs, who cries Skifter The state’s balance sheet is both crying and laughing. In a document prepared for the Presidency (perhaps by the General Directorate of Customs), it is strikingly clear that, over the past eight months, Albanian customs have lost 80 million dollars because of smuggling. Put more specifically, the state has been unable to collect customs duties on large quantities of fuel, cigarettes, coffee or flour that have entered the Albanian market and were, naturally, imported by a small group of major traders. Up to this point, the state’s balance sheet is crying. A document from the Ministry of Finance brings another piece of information to light. In the first five months of this year, tax revenues exceeded the target by more than 2 million dollars. So the state is apparently capable not only of meeting its revenue targets but also of exceeding them, thereby forcing thousands of citizens or small traders to pay taxes. And here, naturally, the state’s balance sheet is laughing. Meanwhile, ordinary taxpayers are getting hot under the collar. These taxes are paid by those who handle little money: sellers, the unemployed, or those who live only on their salaries—in other words, the category that includes the largest proportion of Albanians. By contrast, the donor taxes (those that do not go into the state’s pockets) are paid only by the powerful large importers, a group of people who control money and part of the trade, forming a very small but extremely wealthy section of this country. And this is where injustice begins. These figures show a state that is strong with the weak and weak with the strong. They also show something else: when it wants to, the state knows how to function, because the results in tax revenues are undoubtedly very significant. But why is this not also done with customs duties? Why is it powerless against smuggling, while so effective against tax evasion? If the state could collect those 80 million dollars that have ended up in the pockets of a handful of “bosses,” perhaps it could ease the tax burden on citizens. And everyone would be satisfied. The state’s balance sheet would be in balance with all the people. That would be enough.

Unexpected attack by the Albanian Prime Minister CRANS MONTANA / Albania refuses meeting with the Serbs PHOTO DOCUMENT / SERBIAN SOLDIERS TWO METERS FROM THE ALBANIAN BORDER TIRANA - Nano attacks Rugova in Crans Montana. A patrol of the Federal Army near pyramid C5 at Qafë Morinë TIRANË – Nano attacks Rugova from Krans Montana. “He has been reduced absolutely to a figure with no real authority. Rugov cannot make people like Milošević back down,” the Albanian prime minister declared quite unexpectedly. Yesterday, Nano also refused the scheduled meeting with the Yugoslav delegation led by Momir Bulatović. “You do not meet with the Serbs as long as they have not withdrawn their forces and armed forces from Kosovo,” the head of government said. Meanwhile, the prime minister also expressed another important position regarding how Albania sees a solution to the Kosovo problem. “We do not support Kosovo’s independence. It will not be the best solution. This means old political ties, which have been based on a democratic solution – an encirclement of Serbia,” Nano declared. Photo Arben Çeli (REUTERS / ANSA) A Federal Army patrol near pyramid C5 at Qafë Morinë. Photo Arben Çeli (REUTERS / ANSA)

VLADIMIR BEJA Just a few months ago, at the beginning of this year, almost the entire political class in Albania, and also in Kosovo, because of a lack of information but also of willingness, ignored the existence and the fighting activity that the armed grouping in Kosovo had begun to carry out in response to the extremely violent, fascist-type repression that the Serbian war machine was inflicting on the defenceless Kosovar population. “Terrorist groups, offspring of the UDBA,” and other such phrases were repeated without restraint by some “politicians,” perhaps also disfigured by the silence of those elected through goodwill. This would bring back the old political games that have fuelled Balkan wars. At the same time, they would draw a new series of revisions concerning that other armed stance of the Albanian people of Kosovo in response to Serbian repression, which, together with the bandits, was helping to strengthen and develop this revolt towards consolidated military organisation. Immediately after the American position, which at the same time called on the UÇK to link up with the political wing, the Albanian political class, particularly that of Kosovo, “narrating” its earlier positions and other manoeuvres of non-recognition and of diminishing the UÇK’s popularity, hurried to declare that “Rugova must take orders from me; otherwise it will be fatal for Kosovo.” Demaçi (continuing further) … proclaims his own role for Kosovo. (his heroic deeds) declares that he “is ready to take on the role of the political wing of the UÇK.” What is striking here is the marked lack of respect shown by Kosovo’s political wing towards the UÇK, or its military wing, even now that it has gained immense popularity and control over 40% of Kosovo’s territory. As if this “irresponsible” force had achieved these victories entirely by chance and had been left at a crossroads like a legitimate child for whom Kosovo’s political class is in a hurry to find a “father,” even a legitimate one, to help this “innocent” creation be “put” on the “right” path. It is now known and accepted by everyone that every armed wing needs its political wing, and that the two must work closely together to achieve the objective. Continued on page 2

PS Secretary: His departure would be Berisha’s blunder The opposition reacts after the latest conflict between the leaders of the Democratic Party TIRANA - Pollo finds support among his political “enemies.” Pandeli Majko backed him a day after the publication of the clash between Pollo and Berisha over the local elections. “Pollo’s departure from the DP and the clash that took place are a blunder by Berisha, if what has been published is true,” Majko declared. On the other hand, voices in the PS have said that Pollo’s departure puts Majko at risk. Majko Pollo On page 3 Majko; Pollo

The beach, a 70-year ordeal DURRËS – Half-naked people, a little polluted sand, and the sea farther on. As soon as you approach Durrës beach, built in one of the most suitable bays for tourism in the entire country, you cannot help feeling like a stranger among the strangers there. On page 8

Taxes launch an offensive against private businesses VLORË – Half of the people of Vlorë work illegally. At least fifty percent of all employees are not registered with the Employment Office, and almost this entire category does not pay social insurance contributions. These statements were made at a press conference by the heads of these two departments, following an inspection carried out in the city over the past 15 days. On page 12

ENGLAND WIN BUT DO NOT ELIMINATE ARGENTINA The other match-up will be Romania-Croatia On pages 10–11

A patrol of the Federal Army near pyramid C5 at Qafë Morinë. Photo Arben Çeli (REUTERS / ANSA)