Construction Companies, letter to Minister on taxes

14/05/2011 08:00

Other businesses were added to the network of companies that oppose the draft-law “for taxation on revenues”, a law that provides the establishment of
a new tax based on the profit.

“Shqip” newspaper learns that the Association of Construction Companies have sent a letter to the Finance Minister regarding the new tax, expressing their concern.

“We are categorically against the establishment of this tax, which not only does not realize the objectives of the government, but also damages the businesses and their investment plans”, says the letter of the construction companies.

According to them, different from what the government and the Ministry of Finances declared, the new tax does not affect only the banking sector and the mobile telephony, but many other companies of the construction sector.

The Association of Constructors has asked many times to meet the Ministry of Finance representatives, for discussing not only the new draft-law, but also other concerns of this sector.

The Construction Companies, together with the minister have started negotiations for finding a legal solution that will unblock the licenses for 400 apartments, a number soon to be much bigger, and for discussing the different proposals.

The new government law provides that there will be no more a fix tax of 10% for the taxation on profit. This tax will depend on the profit percentage of the annual turnover. The businesses that will have more than 30% profits from the annual turnover will pay a tax of 30%, three times more than what is paid today.

Based on the high tax that is being proposed, many business associations opposed the initiative of the Finance Ministry.

The Governor of Bank of Albania is also against this initiative of the government.

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