The negative effects on Economy of Nation's Road tax

The negative effects on Economy of Nation's Road tax

 The circulation fee on the "Nation's Road" highway, which is facing numerous objections, according to economic experts and business representatives, will affect in the deterioration of trade relations between Kosovo and Albania. In recent years, both countries have signed numerous cooperation agreements aimed at increasing trade exchanges but which, according to estimates so far, have not achieved the right effects due to the barriers that these countries have put each other in continuity. 

Economic Issues Expert Naim Gashi told to Radio Free Europe that road tariffs are a very serious blow to economic cooperation between the two countries. 

"The trade volume between Kosovo and Albania is ten times lower than with Serbia and the imposition of road tax will further reduce this trade volume. The Government of Albania is taking concrete actions that are stifling the growth of trade volume and economic cooperation between the two countries."said Gashi.

According to this decision, which is expected to come into force soon, all those traveling to the "Nation's Road" will pay a fee of 2.5 euros for motors, 5 euros for cars and up to 25 euros for heavy tonnage trucks. Official data shows that the import value of products imported from Albania per year exceeds 99 million euros, while the value of Kosovo products exported to Albania is only 15 million euros. Berat Rukiqi from the Kosovo Chamber of Commerce told Radio Free Europe that there should be a tax, but it should be reasonable, as the tariff will have a negative impact on the economic aspect.

"A decision, when is taken has not addressed many aspects. It has been non-transparent and has a tax structure that is quite high, whether for citizens or for the business. Most affected by this tax are the citizens of Kosovo. If this tax remains and there is no alternative at least it will make the products less competitive. But I think there is still room for the Government of Albania to find a modality that does not harm citizens or businesses." said Rukiqi.

According to the data of the Kosovo Border Police sent to Radio Free Europe, only in 2017 at the border with Albania were registered over 2 million incoming and outgoing vehicles, trucks and buses. The decision of the Government of Albania to set the tariff of circulation on the "Nation's Road" motorway has prompted great reactions also in Albania. Albania's citizens on Saturday protested to oppose the tax and destroyed completely the fee-paying booths. As a sign of dissatisfaction, against this decision over the past week, some Kosovo private companies importing products from Albania have protested at the border crossing point in Vermice.

Apart from the road tariff that the state of Albania has established, the state of Kosovo also is also expected to impose such a fee for the part of the Kosovo highway.

The Ministry of Infrastructure is in a feasibility procedure, but it is said that this fee will be symbolic and will be in line with the economic conditions of the citizens of Kosovo.
The negative effects on Economy of Nation's Road tax The negative effects on Economy of Nation's Road tax Monday, April 02, 2018 Rating: 5
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