[REVISION HISTORY]
Albania administrative and fiscal reforms
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2026-11-03 12:16 UTC → 2026-11-03 16:57 UTC ·
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Albania is undergoing significant structural changes involving both territorial administration and fiscal policy. President Bajram Begaj has decreed Law No. 100/2026, establishing a new administrative-territorial division that reduces the number of municipalities from 61 to 46. This reform, passed by Parliament in October 2026, 2026 with 85 votes in favor and 34 against, involves merging 15 existing municipalities into larger units units, such as merging Fushë-Arrëzi with Puka and will be implemented Klosi with Mat. The changes are scheduled for implementation during the local elections on May 9, 2027. A 16-member Special Parliamentary Commission Commission, including representatives from the Socialist, Democratic, Alliance for Change, and Freedom parties, has been approved established to oversee the second phase of the reform to and ensure compatibility with European Union legislation. However, Democratic Party deputies have criticized the territorial reform, alleging it is intended for electoral purposes and proposing a referendum instead. Simultaneously, the government has introduced a 2027 fiscal package to increase state revenue. The plan includes raising the standard VAT rate to 21% while reducing VAT on 54 basic food items to 6%. For small businesses, the VAT registration threshold will be halved from 10 million to 5 million lek, potentially adding 17,500 new entities to the scheme. Other measures involve increasing the dividend tax to 15%, raising the profit tax for large businesses to 17%, and increasing tourism VAT to 10%. The government expects these changes to generate roughly 150 million euros annually. These proposals have met with opposition. The opposition from the Bank of Albania has Albania, which warned of potential inflationary pressure. Members of the Democratic Party have criticized the territorial reform, alleging it is intended for electoral purposes. Regarding the fiscal package, MP Erisa Xhixho pressure, and other opposition members have like MP Erisa Xhixho, who alleged it the package will increase the burden on the middle class and exacerbate poverty, suggesting the government should instead focus on managing unspent funds. poverty.
Versions
- 2026-11-03 16:57 UTC Albania administrative and fiscal reforms
- 2026-11-03 12:16 UTC Albania administrative and fiscal reforms
- 2026-11-02 19:13 UTC Albania administrative and fiscal reforms
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