PM Edi Rama accuses general jurisdiction prosecutors of collusion with fiscal evaders
Photo: Edi Rama
Prime Minister Edi Rama has accused general jurisdiction prosecutors of collusion with fiscal evaders, contrasting their performance with that of the Special Structure Against Corruption and Organized Crime (SPAK), which has shown tangible results in fighting corruption. During a meeting with pensioners, Rama highlighted that numerous reports from government tax and law enforcement agencies on fiscal evasion have been ignored for years, suggesting corruption among prosecutors influenced by business owners found in violation.
Why is this important: The issue is critical because the social insurance fund, which finances pensions, faces an annual deficit of nearly 500 million euros. A significant part of the deficit is due to underreporting of real wages by employers, particularly in key economic sectors like construction and tourism. This underreporting leads to insufficient contributions to the pension fund, directly affecting the government’s ability to increase pensions.
Context: The government has initiated a public debate on increasing pensions. During these discussions, Prime Minister Rama pointed out several factors hindering pension increases during his three terms, including the real wage declaration issues, increased life expectancy, and emigration. However, Rama has promised that in his fourth term, alongside EU membership, a major focus will be on significantly raising pensions. This year, pensions were indexed by 4.1%, and next year’s indexing is planned for April instead of October, along with a promised increase in the year-end bonus traditionally given in December.
Government’s new measures: In response to these challenges, the government plans to implement a system driven by Artificial Intelligence to monitor business wage declarations more effectively. This new approach aims to crack down on tax evasion aggressively, as stated by the Prime Minister, targeting all abusers.
What’s next: The government’s commitment to reforming fiscal practices and prosecuting tax evasion is expected to be a significant step towards increasing transparency and efficiency in tax collection. These efforts are essential for improving the financial sustainability of Albania’s pension system and ensuring a more stable economic future for retirees.
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