Law on new taxes

The Finance Ministry numbers are addressed only to the 100 hundred companies with the highest turnover in the country, but which do not necessarily have the biggest percentage profits. Top Channel was able to secure information for a parallel study performed by the Finance Ministry on 500 hundred enterprises, 70 of which have a higher profit level than 20%. For these companies, the new law doubles the income taxes.

The way this law was planned makes taxes affect all companies with a higher annual turnover than 8 million ALL, more than 20% of which are profits. Some businesses will be more affected, like construction, with higher profit levels than 20%. But this is not the only sector. Other businesses could have higher profit levels than 20%. The Prime Minister presented the initiation in public, but only for a small group of businesses, like the telecommunication and banks. But the government’s stance has changed, since the proposed draft is more extended.

Although for some sectors in uncompetitive position, the tax increase is positive, according to some experts. But the wide extension of this law brings back the progressive taxation in Albania, which could raise other questions, the biggest of which is the market reaction after these taxes will be increased: will the companies pay it, or will they increase prices, passing the burden to the citizens?

Top Channel