The 2027 fiscal package has sparked a reaction from three representative business organizations, which oppose the increase in some of the main taxes and warn of consequences for economic activity, investments and employment.
The Tirana Chamber of Commerce and Industry, ProEksport Albania, and the Union of Albanian Producers have come out against the changes proposed by the government, demanding their review and consultations with business before approval.
The objections focus on the increase in the corporate tax from 15% to 17%, the almost doubling of the dividend tax from 8% to 15%, and the increase in the standard VAT rate from 20% to 21%. Another change that has caused concern is the reduction of the VAT registration threshold from 10 million to 5 million lek annual turnover, a measure that would include a larger number of small businesses in the scheme.
The Tirana Chamber of Commerce and Industry is calling for the suspension of the proposed increases, arguing that the additional fiscal burden will affect the costs of enterprises and, consequently, the prices paid by consumers. According to estimates by the Ministry of Finance, reported in the media, the changes are expected to provide over 10 billion lek in additional revenue per year for the state budget.
Although the Chamber welcomes the proposal to reduce the VAT on basic foodstuffs to 6%, it opposes the increase in the general rate to 21%. According to it, this measure could make a number of goods and services, including fuel, energy and transport, more expensive, while also increasing production and trading costs.
The organization also opposes the increase in VAT for the tourism sector from 6% to 10%, while warning that halving the VAT registration threshold could encourage informality among small businesses.
On the other hand, ProEksport Albania, which represents the clothing and footwear manufacturing industry, with over 50 thousand employees, considers the increase in profit and dividend taxes an additional blow to a sector that has long been facing financial difficulties.
The depreciation of the euro against the lek, rising production costs and job losses have weakened the competitiveness of the exporting industry. According to the association, under these conditions, increasing taxes would further limit businesses' opportunities to invest and maintain employment.
ProEksport also criticizes the proposed changes to the payroll tax, arguing that the reliefs do not include employees with minimum and low-middle wages, who make up a significant portion of the workforce in the clothing and footwear industry.
The Union of Albanian Producers has also expressed opposition to the package, arguing that the increase in tax obligations will reduce the profits that businesses can use to expand their activities and make new investments.
According to the organization, a higher fiscal burden risks translating into increased costs and prices for consumers. Meanwhile, lowering the VAT threshold will increase administrative obligations for small businesses that have so far operated outside this scheme.
Despite the differences in the interests of the sectors they represent, all three organizations have a common position: fiscal changes must be subject to a consultation process and a thorough analysis of the economic consequences.
As the government aims to increase budget revenues, business organizations warn that part of this burden could be transferred to consumers through higher prices, while the rest could affect investment and employment.
