The concept of excise is defined in Article 2 of the Law on Excise, point 2. According to this provision it is stated that “excise” is a tax that applies to certain types of products produced and imported, which are thrown for consumption in the territory of the Republic of Albania.
The tax in question has always had a special significance which guarantees – high income every year. Revenues ranked third in terms of budget importance after income taxes or levies. This income is ensured by the fact that, excise affects products which have a wide consumption.
Excise has the property to solve not only fiscal purposes but also those of a non-fiscal nature, affecting products or consumption of products to which a country seeks to reduce or increase their distribution or use, thus ending to build a more preferred object on financial maneuvers affected by unexpected expenses.
These taxes are a form of taxation that has long been ingrained and firmly established in the consumer mentality and habits. For example. in our country after 1990 there were various types of excise laws which were often regulated by special decisions or bylaws, ad hoc. It is precisely for this type of disorganized system that the classic difference between the fabrication tax and the and consumption tax. The difference is based not on the breadth of the product that both types of excise affected, but on different stages of the product cycle of the products themselves: manufacturing excise affected the products during their production, while consumption excise affected the consumption phase of the product or of service.
This difference was later renamed past by the laws of the 1990s, with the abolition of fabrication taxes and their amalgamation into a single, ie only that of consumption. Of course, the merits of this were the directives of the European Community, which gave a step to the process of excise harmonization.
So, a heterogeneous group of taxes was created that affected the fabrication and consumption together or in other words their importation into the territory of a state. These excises and their legal structures have created (and still create) doubts about different profiles. The most important aspect to be mentioned is the position of doctrine and jurisprudence in Europe, from the point of view of the application of the principle of contributory ability.
In the Republic of Albania, the main items on which excise is imposed are:

  • Petroleum by-products;
  • Beer, wine, alcohol and alcoholic beverages;
  • Tobacco and its by-products;
  • Coffee and energy drinks.
    Excise is considered an indirect form of taxation as the government does not apply the tax directly. An intermediary, for example the manufacturer or the seller, is charged with the obligation to pay this tax to the government. This causes the provider, who pays the excise tax to the government, to try to recover it by shifting the tax to the buyer by raising the price of the product. The entry into force of the new fiscal package from January 1, 2014 changed the excises and / or taxes on products such as fuel, cigarettes, alcoholic beverages including energy.

Freedom of Investment

Market freedom is closely linked to free competition. While free competition is a positive element for increasing the possibility of freedom of investment.
For this indicator, our country ranks first in the region, along with Montenegro and Serbia, being estimated at 70.0 percent. This indicator shows how easy it is to invest in a country; so the higher the rating the less restrictions there are on investments.