The Union of Albanian Manufacturers has expressed opposition to the expected changes in the 2027 fiscal package, calling for consultations with the business community before any decisions affecting enterprises are made.
In a statement to the media, the association raised concerns over preliminary proposals that would increase corporate income tax from 15% to 17%, dividend tax from 8% to 15%, and the standard value-added tax (VAT) rate from 20% to 21%.
The proposed changes also include raising the reduced VAT rate for the tourism sector from 6% to 10%, as well as lowering the mandatory VAT registration threshold from 10 million to 5 million Albanian lek in annual turnover, starting January 1, 2027.
According to the association’s preliminary estimates, the increases in corporate income tax and dividend tax could cost businesses approximately €85 million more per year. Meanwhile, lowering the VAT registration threshold is expected to bring around 17,516 additional taxpayers into the VAT system.
The Union of Albanian Manufacturers warns that, if confirmed, these changes could directly affect after-tax profits and limit the funds companies use for investment, modernization, and expanding production capacity.
Concerns have also been raised about the potential impact of higher VAT rates on prices and profit margins, with consequences for demand and business competitiveness, particularly in the tourism sector.
For small businesses that would become subject to VAT, the association estimates that reporting and administrative obligations would increase, along with potential liquidity needs. According to the association, without effective measures to combat informality, increasing the tax burden on declared economic activity risks further deepening unfair competition.
In response to these developments, the Union of Albanian Manufacturers is calling for the publication of the fiscal proposals and their impact assessments, structured consultations with the business community before the changes are approved, and sufficient time for businesses to adapt.
“The voice of the business community must be heard before any economic decision is made,” the association emphasized in its statement.
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