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Government 'forces' Ministry of Education to pay VAT on EU-built schools

2022-05-17 18:15:14Biznes SHKRUAR NGA REDAKSIA VOX

Government 'forces' Ministry of Education to pay VAT on EU-built

Rising prices have boosted state budget revenues in the first four months of this year to record levels. But the government plans to spend some of that money to transfer to them in the form of compensation to increase costs to construction companies that have won tenders.

If for the tender companies it is expected to be offered from 60 to 80 million euros as a subsidy for the increase of mainly the price of iron and cement, for the state institutions the budget is going in the opposite direction.

The case arrives from the Ministry of Education. The latter has been forced to remove 168 million lek from the budget provided with its own funds for investments in basic education, ie the 9-year one to cover the Value Added Tax of school equipment and materials in schools set up with funding from European Union under the reconstruction program.

In 2020, the Government adopted a decision exempting from VAT the obligation of private companies, central and local state institutions and donors engaged in the reconstruction process. However, only the materials used in this process were excluded from VAT.

The part of 168 million ALL that the Ministry of Education will pay again to the state budget in the form of VAT payment is for the materials and the internal furniture base of the schools built within "EU4Schools".

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