Albania proposes 2027 fiscal package and budget

The Albanian government is reviewing a proposed 2027 fiscal package and a 10 billion euro budget. Key measures include reducing the Value Added Tax (VAT) on basic food products from 20% to 6% to address rising living costs. Simultaneously, the standard VAT rate is expected to increase to 21%, and the mandatory VAT registration threshold for businesses is proposed to drop from 10 million to 5 million lek, potentially affecting approximately 17,516 new taxpayers.

The government stated that these fiscal shifts are influenced by the current political situation following student protests. The budget also includes provisions for compensating businesses that suffered damages during recent demonstrations in the capital. While the government aims to formalize the economy and support vulnerable social groups, business representatives and accountants have expressed concerns regarding increased corporate taxes and potential business exodus from the region.