Editorial

Agron Llakaj for Minister of Finance and Erjon Braçe for Chairman of the Petroleum Board

Agron Llakaj for Minister of Finance and Erjon Braçe for Chairman of the

There was a sketch from the 90s with Agron Llakaj and the late Koço Devole. The latter was in the role of a journalist, while Llakaj represented the government economist. Before they started, Koço asked Llakaj to be a little more understandable with the figures that he said no one understands. And then the interview began and the economist began to speak.

"Here. Was the budget 6.5 percent in 1992? In 1993 it increased by 6.7 percent. While in 1994 it increased by 0.8 percent of the 6.5 percent of 1992. So that means 7.8 percent more than 1993 and in total we have an increase of 0.9 percent more than the 0.8 percent of 1994."

Koço's face when he said the numbers is a masterpiece, but what the hell. I remembered this sketch when I saw the news that the government has decided to reduce the oil excise tax by 20 percent. The oil excise tax is fixed. They reduce it by percentage. It's like grabbing your ear from behind your head. Although with government decisions, it's more likely that instead of your ear, you'll grab something else.

Now the serious calculation of the reduction. Currently, the excise tax on oil is 39.38 lek per liter. The 20 percent reduction means that the excise tax will be reduced by 7,876 lek per liter. Together with the effect of VAT, the final reduction in the price of oil is 9.4512 lek per liter. This is the final effect of the 20 percent reduction in the excise tax on the price of oil. As Agron Llakaj would say, the reduction is 0.7 percent more than the 0.8 percent increase in the price of oil.

The brain is undoubtedly the most wonderful organ of the human body. It starts working as soon as you wake up in the morning and does not stop working for a moment while you are sitting in the government offices. When you go there, you start making decisions like this one that reduces a tax by 4 digits after the decimal point. But that's how government work is. However, Agron Llakaj from the sketch would be a much more serious finance minister than those who make these decisions.

The 20 percent reduction of 39.38 lekësh is the first solution that the government gave for the price of oil. The solution of nothing, that is. Because the reduction by 9 lekë per liter means that Albania will not have oil taxes 79 lekë per liter higher than Kosovo and North Macedonia, but it will have them 70 lekë per liter higher. And 9 lekë per liter will not even be felt because in just one day the price increases by more than that.

But one solution is not enough. Two are needed. And the second is this of the Board. However, there is a rational solution here.

The first board was judged as being controlled by oil traders. In order to avoid prejudice, this time it would be appropriate to appoint Erjon Braçe as the chairman of the board, who is the first proposer and the only official of the majority, who has publicly denounced that the price of oil in Albania is fixed by the traders' cartel.

This way, Albanians would understand once and for all what the real problem with the price of oil is. Abuse by traders or taxes. But since the government never likes rational solutions, it is more likely that one of those who proposed reducing the tax by 4 digits after the decimal point will become the chairman of the board than Erjoni.

That is, from nothing with a decimal point to nothing with the Board of Directors.

Editorial