Aid package for the textile industry in Albania

Aid package for the textile industry in Albania

IBNA Special Report

The Albanian government has prepared a package of aid measures for the industry of active processing (textile industry). The package, which was announced yesterday (photo), also included the dialogue with the industry of textiles in the country.

The novelty consists on the fact that this package has been drafted by representatives of the textile industry and reflects the problems that they’ve been facing for years and the best way to address them.

Employment is the objective

“Employment is the key word of this process”, says the Minister of Economic Development, Commerce and Enterprise, Arben Ahmetaj, who announced the objective of the government to create 15 thousand new jobs in the first year of the government.

“With the drafting of this package, a new chapter for the economic development and employment in the country opens”, says Ahmetaj.

The measures of this package aim to boost exports by 80% in the next three years.

Low rent and VAT refunded immediately

This package includes 46 aid measures. Among them is also the 1 Euro contract for active processing plants, a measure which will save on average 2,5 million USD worth of rent for entrepreneurs. These are state owned buildings being used by the textile industry.

Another problem for the business, especially for the textile industry relates to the delay in the refund of VAT for long periods of time. Now, VAT refund will be made immediately in the case of zero risk taxpayers, a category which includes textile businesses and 30 days in the case of exporting taxpayers.

Rama talks about a new economic model

Prime minister Edi Rama says that this package reflects a new model for the economy of the country, which differs from the previous model which was based on remittances and public debt.

“The new economic model being installed, is replacing these factors with new economic factors. This new model is based on domestic production, direct foreign investments and the efficiency of the economy in order to secure a normal development of the economy and businesses based on the partnership between the government and enterprise”, says Rama.

This package is only the start of innovation in the sector of active processing which will expand in whole of the economy, in order to secure a 5 or 6% sustainable economic growth.

With this package, Albania is officially on the map of producers for the European market, not only as the nearest location, but also as the most important location open for the textile industry.

Experts say that the textile industry has performed for a very long time under its full potential. With this aid package, the government is aiming to relief the unexploited potential.

Textile businesses react

National Chamber of Clothing Producers is the association that represents textile companies. Engineer Arben Peci, the president of the National Chamber of Clothing Producers in Albania, says that the package is a positive encouragement for the textile industry.

“The concessions that have been offered and promoted by the prime minister of the country will engage free capacities of our enterprises in order to increase not only employment, but also incomes in circumstances where we lack foreign investments and falling remittances from emigrants”, says Peci.

He said that the textile industry will employ around 100 thousand Albanian boys and girls. /ibna/