Taxes, Ministry of Finances repeals Prime Minister’s project

The Prime Minister’s request for applying high taxes for companies with considerable profits, mainly banks and mobile phone operators brought together all business community, who strongly opposed this decision.

Finance Minister Ridvan Bode confirmed the withdrawal of the draft for progressive taxation, considering it a closed chapter. PM Sali Berisha had earlier declared that the destiny of the draft depended from the analyses performed by experts of this ministry.

It seems that the constant pressures have obliged the government to withdraw the tax increase.

At the beginning, it sounded like a pressure made by the Prime Minister towards the biggest companies in a time of electoral campaign, but his persistence concerned the private sector community.

The draft proposed two months ago by the government aimed to establish a progressive tax on profits, from the current stable level of 10%. For companies that profit less than 20% of the turnover, the tax would remain 10%. For profits from 20% to 30%, the tax would be 20%. For companies that profited more than 30% of the turnover, the tax would be 30%.

The Prime Minister declared that such a measure would not change the principle of the flat tax, but instead, it would reduce the fees and the citizens would have lower prices. But the business gave other arguments that, according to them, harmed their investment plans. Another high rank financial figure that opposed the “Marxist tax” was the Governor of Bank of Albania, considering it as harmful for the economic growth and for attracting foreign investments.

According to official data, 9 companies in Albania have profits from 30% to 70% of the turnover, and six companies from 20% to 30% of the turnover.

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