New tax system

The draft is not official, since the government says they are negotiating with the International Monetary Fund and no final decision has been taken. But according to this draft, the new system changes a series of taxes by lowering and raising several of them, but that increase the government’s income with 18 billion ALL more than now.

VAT is removed from medicine and health services, and also for the basic food and hotels. But it will be higher in fuels and imported machineries for concessionary companies that exploit Albania’s oil.

The small business tax will be removed from January, and the Tax on Profit goes from 10 to 7.5%. Tax of business buildings or second homes will be doubled.

Excise will increase with 20 ALL for every package of cigarettes, and it will be removed for all fuels when oil producing companies use for their needs.

The mining taxes for concessionary companies will increase from 10 to 15%, and there will be an increase of 5 ALL for the circulation tax, which is paid by citizens through the fuel price.

Businesses who have a turnover of 8 million ALL will increase from 10 to 50%, while companies who base their activities on the agreements they have with the government, such as the concessionaries, will have a tax on profit of 20%.

The new tax law makes it easier for consumers, especially for those with low income, and makes it harder for companies that exploit natural resources, such as oil and chrome.

Other changes will be the increase of the public sector wages and the finalization of pending projects. This is also confirmed by a confidential document that the government sent to the National Economic Council, where these policies will be discussed next week with business groups.

Top Channel