Tarifa on Nation Street undermines Kosovo-Albania economic co-operation

Placing the circulation fee on the “highway of the Nation”, which is facing numerous objections, according to economic experts and business representatives, will affect the worsening trade relations between Kosovo and Albania.

Both countries, in recent years, have signed numerous co-operation agreements aimed at increasing trade exchanges, but which, according to current estimates, have not achieved the right effects due to barriers the countries have placed on each other over and over again.

Economic Affairs expert Naim Gashi told Radio Free Europe that the road fee is a very serious blow to economic co-operation between the two countries.

The trade movement between Kosovo and Albania is ten times lower than with Serbia, and the introduction of the road tax will further reduce this commercial volume. Albania's government is taking concrete action, which is curbing increased trade volume and economic co-operation between the two countries”, Gashi said.

Under the decision, which is expected to enter into force soon, all those travelling to “The nation's path”, in the Albanian part, will pay the fee from 2.5 euros for engines, 5 euros for cars and up to 25 euros for heavy tonnage trucks.

Official data shows that the value of import of products imported from Albania annually exceeds 99m euros, while the value of Kosovo products exported to Albania is only 15m euros.

Berat Rukiqi of the Kosovo Economic Oda told Free Europe Radio that there would have to be taxes, but that it would be reasonable, since the set fee would have a negative economic impact.

A decision which has not addressed many aspects when made. It has been nontransparent and has a tax structure that is quite high, both for citizens and for business. Most affected by this tax are Kosovo citizens. If this tax remains and there is no alternative at least it will make products less competitive. But, I think there is still room for the Government of Albania to find a modal that does not harm citizens or businesses”, Rukiqi said.

According to Kosovo border police data sent Free Europe Radio, more than 2 million entrances and exits of vehicles, trucks and buses have been registered only in 2017 on the Albanian border.

The Government of Albania's decision to set the circulation fee on the “highway of the Nation” has prompted major reactions in Albania as well.

Citizens of Albania on Saturday protested to contest the tax and completely destroyed the fee pay booths, hitting them with strong means and setting them on fire.

Protesters burn toll pay booths

As a sign of disappointment, several private companies from Kosovo importing products from Albania had protested at the border point in Vmica last week.

Otherwise, besides the road fee the state of Albania has imposed, the state of Kosovo is expected to set such a fee for the part of the Kosovo highway. The Ministry of Infrastructure is in the feasibility procedure, but it is said that this fee will be symbolic and will comply with the economic conditions of Kosovo citizens.