Albania PM Rules Out Broad VAT Refund on Fuel Price Hikes, Prioritizes Pensioners

Edi Rama said the government will not return additional VAT revenues generated from rising fuel prices to all citizens and businesses, stating that pensioners will remain the primary beneficiaries of any extra funds.

Speaking about the recent increase in hydrocarbon prices, Rama addressed calls for reimbursing the public with the value-added tax collected from higher fuel costs. He dismissed the proposal, emphasizing that such financial gains would instead be directed toward a specific social group.

“The only category that will receive more whenever possible — whether from stronger-than-expected economic growth or increased revenues in situations like this — is pensioners,” Rama said.

The prime minister noted that wages in the public sector have already increased, while salaries in the private sector continue to rise, particularly for skilled workers. According to him, the labor market has shifted significantly, with employers now competing to meet salary expectations rather than offering fixed wages.

Rama’s remarks underline the government’s approach to cushioning the impact of global price pressures, focusing targeted support on vulnerable groups rather than implementing broad fiscal relief measures.