Businesses ask the government to give up from the progressive tax and
escalation of the Tax on Profit. The Chairman of the Chamber of
Commerce, Nikolin Jaka, declared that these measures would have negative
consequences in economy.
“It would mean bringing an informal market, because the progressive tax damages high wages. Tax for corporates is attractive when you have a reform or fiscal package with simplified fees, fixed fees in low levels. If we complicate it, chances are that there will be fewer foreign investments and they will not come to Albania”, Jaka declared.
The government will start consulting the business on December 10th, when the National Economic Council will meet. But Mr.Jaka listed a series of request that the Chamber of Commerce has for the new fiscal package.
“We want concrete measures for paying the debt to business, by foreseeing it at the budget 2014; a differentation of VAT no higher than 10% for agricultural domestic products and tourist servces; no VAT for all machineries that go under the VAT reimbursement scheme and that serve to the private business; removing VAT for public transportation”, Jaka declared.
The government has declared that the progressive tax will return by January 1st, and for the first time, Tax on Profit for Business will be based on the annual turnover and on the economic activity.
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