—Value-added tax, a concrete opportunity to increase revenue— The government’s medium-term economic program and this year’s state budget mean, first and foremost, increased investment in the economy and social assistance for the groups least protected by the reform. These two commitments are vital institutions, not only for the state. They concern, to a greater or lesser extent, every one of our pockets. Before they fill our pockets—or give us the chance to fill them—they will come before the state finances with many more hands outstretched, asking for money. Will these finances, at their present level, be able to respond with the necessary funds? Indeed, last year the tax system collected 101% of the money planned to be raised from private and state entities. This year, however, much more money is needed. Will its streamlined mechanisms be able to secure the necessary funds? Or has the time come to use a more complex mechanism that ensures a greater flow of money? This mechanism is called the “value-added tax” (VAT). It was the solution adopted by the member countries of the European Union to stimulate production. During the restructuring of their economies, Latin American countries adopted it, resulting in increased tax revenues. VAT, an objective of the Meksi government’s medium-term program, will not tax both imported raw materials and the finished products made from them twice. In addition, it does not overlook the small-business markets of shops and cafés which, to obtain their goods, do not go through customs and do not have bank accounts. VAT removes these flaws. It is applied at every stage of the production and distribution of goods, without taxing the same value produced twice, and includes the large number of small traders and businesses that operate without going through the doors of customs or banks. In this way, the main benefit of value-added tax is its broad, almost complete coverage of the consumption of goods and services. It invites every kiosk seller, every businessperson and every owner of a small service shop, without excluding the large ones, to contribute to the country’s revenue continuously, honestly and without being burdened too heavily. Every person who generates income is “caught” by this tax. No matter how low its rate is set, VAT generates a high level of revenue because it is collected wherever new value is created. It is understandable that applying this tax nationwide requires a large administration, ongoing calculations at frequent intervals, and considerable means for recording and reconciliation. But the increase in revenue is worth many times the increase in the tax authority’s operating expenses. VAT also achieves what is called a price. In this way, it avoids price confrontations. In this way, it avoids confrontations with the very broad body of taxpayers. Value-added tax also has another dimension—that of prospects. It is an instrument that influences production because it encourages production for export, where it is not applied. In this way, VAT improves the country’s trade balance by taxing imports and removing the tax burden from exports. Someone may say: so this new tax has no drawbacks at all, only benefits?! Like every economic measure, it has its own balance, with advantages and disadvantages. It entails a very large administration, a substantial volume of work and data collection. In countries such as Italy, Germany, etc., its tax evasion, despite the powerful computerized tax systems those countries have, amounts to thousands of billions of lire and billions of marks. And yet it is applied there because the scales have always tipped toward its economic advantages. VAT also creates the paradox in which “those who believe they are exempt are taxed, and vice versa.” This is because buyers are also taxed on the difference between the tax on sales and the tax on supplies at every stage of production and consumption. The situation regarding the funds needed requires the government to study, with greater urgency, the possibility of introducing this tax into our tax structure as soon as possible, even if that means starting with initial errors and revenue shortfalls, or a temporary decline in popularity... This mechanism is called “value added countries of the European Union to stimulate productivity. During the restructuring of their economies, the countries of Latin America adopted it, with the result that fiscal revenues increased. VAT, a target of the Meksi government’s medium-term programme, will not be a new tax added to the existing ones. It will replace the turnover tax—the old “tiger” that discourages traders and those seeking to invest in production using imported raw materials. This is because the turnover “tiger” has a drawback: the “cascade” effect. It taxes large administration, continuous calculations and frequent reporting, as well as considerable means of registration times the increase in the costs of the fiscal apparatus. VAT also achieves what is known as international neutrality. This means that this tax is not applied to exports, since these goods and services are not consumed within the country. It also has a psychological advantage, because it is applied as an invisible tax and collected in a “painless” manner, as it is hidden in … funds needed requires the government to study more urgently the possibility of introducing this tax into our fiscal structures as soon as possible, even if this means risking initial errors and shortfalls in revenue, or a temporary drop in popularity, which every new tax brings. There is every likelihood that taking a chance on VAT now will turn it into an effective means of financing investment and the funds for the unemployed, pensioners and people receiving assistance in the near future.

Meetings of the Chairman of the PDSH, Mr. Eduard Selami, the Secretary-General of the PDSH, Mr. Tritan Shehu, and Messrs. Uka and Teliti, as well as MPs Ruli and Bejko, with residents of the commune of Lazarat and the city of Gjirokastër. —Dozens of cars draped in the national flag at the entrance to Gjirokastër— Several kilometres before entering the city, the people of Gjirokastër and Lazarat had come out to welcome Mr. Eduart Selami and the other gentlemen in their private cars. There were dozens of cars, many of them draped in Albania’s national flag. The long procession of dozens and dozens of cars travelled as far as the centre of the commune of Lazarat, amid the gaze of hundreds and hundreds of people on both sides of the road, who greeted them with two fingers raised in a V shape. —Lazarat has made progress, but...— Lazarat, with its more than 150 private cars, 20 tractors and 20 shops, Lazarat with its land distributed, has gathered here to discuss the good things it has achieved and the problems and concerns it faces, said Muharem Pollo, chairman of the commune, in his speech. The village has 680 families and around 3,470 residents. He went on to stress that changes in Lazarat over the past two years had been significant. Today, 36 private companies and several bakeries operate in the commune. Twenty-six families are devoted exclusively to livestock farming. In just these two years, many tractors with rubber tyres have also come here—not to mention household electrical appliances, which cannot even be compared with those of the past. Today in Lazarat there is only one family in need of social care. —...and problems— The questions raised by those present, and their discussions, also focused on some of the problems and concerns currently facing the commune. These included proper implementation of the land law and strict enforcement of the law against those who have illegally occupied land. Particular criticism was directed at the enforcement offices, which, as in many other districts, still appear to be ineffective. One troubling problem in Lazarat was the delay in issuing title deeds for the land that had been distributed. Other problems included the allocation of funds for drinking water and irrigation water, paving several kilometres of road connecting the village to the national highway, and so on. —MP Makarajdhi has forgotten us— The villagers’ discussions were frank and courageous. Their criticisms were directed at both the government and Parliament. In particular, they pointed out that their MP, Makarajdhi, had never come among them to sit down and talk with them. —A cradle of true patriotism and Albanian identity— Speaking at the meeting, the PDSH chairman, Mr. Eduart Selami, said: “I thank you, on behalf of the Democratic Party and the democratic government, as well as on behalf of President Berisha, for the support you have given democracy since its very beginnings. The fact that the PD won the elections held here in Lazarat says a great deal, and at the same time creates a great obligation for us. Lazarat will vote for democracy again, because you have been and remain an area that is not only anti-communist but also democratic and patriotic in spirit. Your village has withstood the storms, has withstood Hellenization, and has preserved the spirit of national patriotism, the spirit of patriotism...”—until one of those present at the gathering died and was sacrificed, followed by powerful applause. “We are grateful to you not only for your support for democracy and the PD, but also for your support for the national cause.” —Democracy has no single author— “We have never before had in Albania local authorities of this kind, where citizens can realistically participate in self-government as they do today,” said Mr. Rexhep Uka, Minister of Local Government, as he took the floor at the meeting. “Soon we will also establish prefectures, which will further strengthen the implementation of laws and the functioning of local government. To conclude, I would like to say that Lazarat is a patriotic people, deeply committed to the national cause,” Mr. Uka stressed. Meeting in the city Gjirokastër is among the leading districts in the Republic in terms of the volume of money in circulation. It has unemployment at levels seen ten years ago, as well as a high level of support for democracy, said Mr. Syrja Barçi, Chairman of the PD district branch in Gjirokastër, as he opened the meeting between residents of the city and Mr. Eduard Selami, Tritan Shehu, and others. After his opening remarks, Mr. Syrja Barçi invited those present, who had filled the hall, to observe a minute of silence in memory of the martyrs who fell on 10 April 1994. Minorities in Albania never feel alone Speaking about the situation in the troubled Balkans, Mr. Selami stressed that it was regrettable that extreme nationalisms had flared up in our region and were manifesting themselves in the former Yugoslavia, especially in Bosnia, as a harsh and bloody war. Our policy has been and remains one of peaceful resolution and opposition to changing borders by force. At the same time, it is also a policy of defending the national interests of Albanians. The recent incident should not serve as a reason to damage relations with the minority, which here in Gjirokastër has a long tradition of humane relations among people, far removed from the policies of certain extremist circles. The minority in Albania will never find itself alone; let us work together for the good of democratization in Albania, because that is in all our interests. —Gjirokastër has never lacked wise people and intellectuals— The PDSH Secretary-General, Mr. Tritan Shehu, spoke about Albania’s achievements over these two years, which have been recognized not only by us but also by the world’s most prominent organizations and figures. Thus, he emphasized, production...

in terms of confronting them, which appear to be ineffective, as in many other districts, and seem unfamiliar, stressed Mr. Uka.

The Sarandë District Prosecutor’s Office decided not to initiate criminal proceedings against the captain of the ship “Ajos Vasilios,” Greek citizen Petros Jorgos Sugjeros, and the three Egyptian sailors in the ship’s crew. The deputy prosecutor of the district, Kiço Milo, told ATSH that this measure was taken as a matter of prosecutorial policy, pursuant to Article 73 of the Criminal Code, and that those detained in connection with the case were released. The crew of the Greek ship “Ajos Vasilios” was apprehended on 15 April in the Bay of Borsh by forces of Naval District No. 4 and was detained that same day by the police station in Sarandë for illegal fishing in the territorial waters of the Republic of Albania.

—Nothing absolves you of responsibility for Shkodër, Mr. Zogaj, or the others with you— “ZP,” a continuation of the thinking and crimes of the former dictator Hoxha, does not spare its hymns and praises for Mr. Preç Zogaj, piling one epithet after another on him: “courageous and honest, but also an idealist,” etc. This newspaper, which has defended crimes for days on end and advertised them as the pinnacle of democracy, could hardly fail to defend those who served a mechanism of crime and who continue to play the same role to this day. It would be hard to imagine a more “worthy” platform from which to defend Mr. Zogaj. The fact is that, regardless of what “ZP” writes or what Preç Zogaj himself writes, the truth cannot be hidden. A great deal of noise has been made to stir up confusion, and many accusations have been levelled against democracy over the recent events in Shkodër. Nothing can absolve Mr. Zogaj and the others with him of responsibility for this tragedy. The Shkodër crime, as was established from the outset after it was committed, was organized by former State Security employees who, like Pontius Pilate, are trying to wash their hands of it by accusing the Minister of Public Order and others. But it is this Ministry that must now identify them and their accomplices. As has been reported, the first of them have already been arrested. In connection with these events, Mr. Zogaj, it seems, has had a rush of blood to the head and decided to confess. He chose confession as a way of evading the crime and washing his hands of it. But Mr. Zogaj could write hundreds of pages about the crime and hold hundreds of press conferences; nothing can absolve him or the six or seven others like him who have still not confessed of responsibility. None of them will ever be able to escape the maelstrom into which they decided to plunge Shkodër. Why did Mr. Zogaj confess?! Blood ties are strong; they do not let go. But he would have done better to leave his crime to the socialist era. Perhaps that would have made Preç a hero. Nevertheless, it seems there are people who would not allow either him or the others to act this way, and so he has retreated into the position of a citizen with a guilty conscience, remorseful like a sinner. Together with his accomplice Shyqyri Çela, the channels of the crime were also clearly exposed. As we said, one of the suspects has been arrested. Let us see what he will tell the courts. The other suspect is none other than the brother of the former State Security officer and collaborator Shyqyri Çela, whom the organizers of the crime in Shkodër sent abroad into exile to hide their tracks. But crime, in any case, cannot be committed without leaving a trace. The fact is that its organizers, shortsightedly trying to save themselves, published Sh. Çela’s letter after his departure. In it, the criminal accuses others in order to cover his tracks. Mr. Zogaj, you are responsible for the crime, and it will be hard for you to escape it. All those who stood behind the Shkodër crime will surely get what they deserve. You thought you would organize a massacre in Shkodër. But the democratic government and the genuine democratic forces neither fell nor could have fallen into your trap. So the forces of crime, to which you and the six or seven others belong, mobilized the black squads, and justice will have its say about them. You accused the Minister of Public Order, but the suspects in the Shkodër crime have still not been caught. Çela and his brother. You know all this—you who have the information, you who publish the letters, you, the secret channel of crime; you who nurture and cleanse it, wear crime as a badge, and served it under dictatorship and still serve it in freedom. THE OBSERVER

Statement by the Foreign Ministry spokesperson In order to contribute to reducing tensions between the two countries and in the region as a whole, and to create the most favourable possible climate for the meeting between the foreign ministers of Albania and Greece scheduled for 3 May 1994 in Zurich, whose success is in our interest, Albania has decided to suspend implementation of its decision concerning the diplomatic staff of the Greek Embassy in Tirana until that meeting. In Zurich, a bilateral agreement on the diplomatic staff of the two countries will also be discussed, as was noted at the meeting President Berisha held on 14 April with the representative of the European Union Troika in Tirana, the German ambassador, Mr. Klaus Felers. We hope that this act, which expresses Albania’s commitment to a constructive policy, will serve as a signal to the Greek government to commit itself to ending hostile acts and pursuing a policy of good neighbourly relations toward Albania. With this decision, Albania once again confirms its determination to pursue a policy of reducing tensions and preserving stability in the southern Balkans. Tirana, 22.04.1994

Yesterday at 12:00, the Albanian ambassador, Mr. Hysen Çabej, was summoned to the Greek Ministry of Foreign Affairs and informed of the Greek Government’s decision to annul the measure envisaged in the Note dated 20.04.1994, declaring the decision to remove the Albanian diplomat null and void and allowing him to continue his duties normally. MINISTRY OF FOREIGN AFFAIRS PRESS DIRECTORATE

Although Albanian justice has made its decision on F. Nano, some PS leaders keep repeating the same refrain: “Free Nano.” No one knows whom they are directing this demand to, and by now it has become a routine act. Nevertheless, their insistence on this absurd demand, and the equally absurd “arguments” they put forward for it, really make you think that for some people Nano is PS itself, while everyone else is merely a headless body. “Nano will be the only chairman,” say the headless leaders at the meetings they are holding, although by now the chairman’s chair holds nothing but one of Nano’s photographs, which PS distributes like leaflets. The matter even goes so far that Nano is not only considered equal to PS, but is also considered equal to the entire opposition. That is how yesterday’s “ZP” describes its chairman. These facts show that PS is now being led by a photograph stuck up with glue and a few headless leaders, who are either on, or have put themselves on, a checkerboard of black and white, where a hand moves them as it pleases and takes them off the board. E.P.

[Caricature: portrait in a frame above several seated figures.] P. N.?

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SHQIPERIA NGRIN ZBATIMIN E ANULOHET