Albania: Opposition and British Chamber of Commerce oppose 2027 Fiscal Package

The Albanian government’s proposed 2027 Fiscal Package is facing significant criticism from political opposition and business organizations. Democratic Party Deputy Jorida Tabaku warned that the package will increase costs for small businesses and create financial insecurity for families. Key points of contention include the proposal to lower the VAT registration threshold from 10 to 5 million lek and the increase of the standard VAT rate to 21%.

Tabaku argued that these changes could force entrepreneurs to raise prices, accept lower incomes, or face closure, potentially driving more economic activity into the informal sector. She also questioned the shift of tax burdens from fuel to annual vehicle obligations.

The British Chamber of Commerce in Albania has also expressed concern, urging the government to postpone implementation and conduct a thorough economic impact analysis. The Chamber highlighted that increasing the dividend tax from 8% to 15% could interfere with capital returns and investment decisions. Additionally, the Chamber warned that the VAT hike might reduce consumer purchasing power and overall economic competitiveness, despite the proposed reduction of VAT on basic food items.