17/09/1997
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Koha Jonë

17 September 1997

Assembly: the DP throws punches at the taxes

Imami: a constitution with or without the DP. Teta: The file on the compromised military officers is ready. Attacker Ceta gets 13 years in prison for Berisha Page 3

RTV — Storm behind the screen: 13 directors dismissed

The ruins of the Martanesh mine, where 6 miners lost their lives Photo: GENT SHKULLAKU

VEFA: There are revanchists among the demonstrators

Alimuca: they were filmed mingling; we know the organizers Page 8

“The Flag of Pages” comes to Tirana

Having travelled all over the world, “The Flag of Pages” comes to Tirana. It is a major festive concert, organized by the UN, which will take place tonight in National “Qemal Stafa” Square. The message of peace, broadcast across all 5 continents, has now taken its turn to appear before the Albanian people. From the countries of Eastern Europe to places beyond the Pacific, the magnificent concert seems set to continue its journey. With the participation of senior state officials and Albanian artists, and performances by singers Edit Mihali, Ardit Gjebrea, Ledina Çela, Manjola Nallbani, and others, tonight’s show comes at just the right time in the place most in need of peace. In addition to those mentioned above, the event will feature the string orchestra, the army band, as well as gymnastics and sports groups, among others, who will give the stage a varied atmosphere before the people of Tirana. After it is kept in the Albanian capital, “The Flag of Pages” will continue to be broadcast on a large scale in other countries.

The transition begins now

Yesterday, parliament gave the green light to the government’s decision to raise VAT from 12.5 percent, as well as several other taxes on most goods. Regardless of the positive effects such a measure will have in the future in reducing the budget deficit and improving other macroeconomic indicators, for now, after losing money in the pyramid schemes, this will be the heaviest blow yet to Albanian household budgets. Although the tax increases are directed at traders and producers, ultimately it is the consumer who will pay for everything, buying necessities at higher prices. Even without these austerity measures, as a result of the fight against tax evasion and the sudden rise of the dollar, the prices of all goods and services rose considerably, making life even more difficult for Albanians. The inevitable rise in prices resulting from the government’s measures on goods in general must be compounded by the fact that, for some of these goods, the increase will be astronomical, given that for various reasons they had been exempt from taxes. This makes one think that it will be very difficult for Mr Nano’s government to get through this harsh winter without problems, considering that consumption rises significantly during this season. First of all, the segment of households with minimal incomes was already unable to secure the necessities of life, let alone now, when it is unclear how they will manage and endure the sacrifices resulting from the latest measures. But further deterioration in the economic situation naturally brings social problems with it, the aggravation of which would jeopardize the government’s future. Added to this is the tendency of Albanian traders to exploit the price increases, raising them beyond what is justified under the pretext of higher taxes. People are already talking about prices rising significantly more than the increase caused by changes in tax rates. The change in prices after the rise of the dollar is an example of this. Yet now, even though the dollar has fallen, prices have remained at the levels they reached when the greenback was at its peak against the lek. The important question is whether the government will remain indifferent to this tendency or will control the inevitable price increases. The worsening economic situation of Albanian households will undoubtedly become the opposition’s “battle cry” in its efforts to return to power. In this respect, it must be said that so far government propaganda has made no effort to explain to people that these austerity measures are a direct consequence of the amateurish economic policies of the current era, which deceived Albanians with the illusion of the pyramid schemes’ false miracle. In fact, Albanian families will now have to make the sacrifices they should have made several years ago, when Berisha boasted about the pyramid schemes, pointing to other Eastern countries that were suffering the consequences of the transition. As for Albanians, it begins now.