Reduced VAT for tourism didn’t bring cheaper prices for citizens, according to the Institution of Statistics.
VAT for hotels was reduced with 14% starting of this June 1st, but room prices remained the same, making hotel owners earn more.
The Association of Tourism and Hotels lobbied hard at the Albanian government for reducing the 20% VAT of hotels, saying that it was the main reason why prices were so high. But despite the drop to 6%, Albanian tourism did not become more competitive and owners earned more.
The Tax Office also verified during the past month that half of tourism businesses, especially hotels and restaurants, are still working in informality, avoiding taxes.