The Fiscal Package is strongly opposed by business, the Union of Albanian Producers: Additional burden for us, no consultation was conducted

2026-10-28 11:59:00 / EKONOMI&SOCIALE ALFA PRESS

The Fiscal Package is strongly opposed by business, the Union of Albanian

The "Union of Albanian Producers" association has expressed concern about the expected changes in the fiscal package for 2027 and strongly opposes any changes that are drafted without real and transparent consultation with the business community.

According to preliminary information, the following are expected:

- Increase the tax on profit from 15% to 17% and on dividends from 8% to 15%.

- Increase of the general VAT from 20% to 21% and of the reduced rate for tourism from 6% to 10%.

- Reducing the threshold for mandatory VAT registration from 10 to 5 million lek annual turnover, from January 1, 2027.

Preliminary estimates speak of an additional burden of around 85 million euros per year from profit and dividend tax, as well as the inclusion of around 17,516 new taxpayers in the VAT scheme.

If confirmed, the changes would reduce after-tax profits and funds for investment and modernization of production. The VAT increase could put pressure on prices or profit margins, jeopardizing demand and competitiveness, especially in tourism.

For small businesses that are included in VAT, declaration and administration obligations increase, and the need for liquidity may increase.

Without effective measures against informality, the additional burden on declared activity risks deepening unfair competition.

The association requires the publication of proposals and impact analyses, structured consultation with business before approval, and sufficient time for adaptation.

The voice of entrepreneurship must be heard before any decision-making of an economic nature, the announcement states.

Earlier, the "Pro-Export Association" stated that "The proposed increase in corporate income tax from 15% to 17% and the almost doubling of the dividend tax, from 8% to 15%, constitute an additional burden for enterprises."

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