The German Chamber of Commerce and Industry in Albania (DIHA) has raised concerns over the 2027 Fiscal Package, warning that tax increases could harm foreign investment, business competitiveness, and job creation.
In a public statement, DIHA criticized the lack of consultation with the business community during the drafting of the package.
According to the chamber, the draft laws were not discussed with businesses in a timely manner, while the planned implementation of the changes on January 1, 2027, leaves companies with little time to adapt.
The association particularly opposes the increase in dividend tax, arguing that the measure would make Albania less competitive compared to other countries in the region and limit companies’ ability to reinvest their profits.
DIHA also expressed concern over the proposed increase in the standard Value Added Tax (VAT) rate to 21 percent, warning that it could lead to higher consumer prices and reduce the benefits of the VAT reduction on basic food products.
The chamber also criticized the increase in VAT for the tourism sector and the lowering of the VAT registration threshold, measures expected to raise costs for small businesses and the tourism industry.
However, DIHA welcomed the decision to keep the corporate income tax rate unchanged, reduce income taxes for the middle class, and cut bureaucracy for businesses.
As an alternative, the association proposed introducing a reduced VAT rate on electricity to ease costs for households and businesses.
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