Albanian manufacturing sector calls for tax relief and investment support

The Albanian manufacturing sector is seeking tax and financial measures to offset rising costs and encourage investment in technology. During consultations on the 2027 Fiscal Package, the Albanian Manufacturing Association submitted several proposals to the authorities. One calls for aligning the tax-free threshold with the minimum wage.

Economic specialist Florian Zekaj said workers earning the minimum wage of ALL 50,000 pay no income tax. He said workers earning ALL 50,001 immediately face a 13% tax rate. Zekaj said the system unfairly affects workers whose earnings are close to the threshold. The association also seeks changes to customs tariffs on raw materials. Zekaj said countries similar to Albania have used this measure before joining the European Community.

Zekaj also highlighted the impact of higher fuel prices and the depreciation of the euro on the sector. He said rents previously paid in euros have started to shift to ALL. He called for greater government attention to manufacturing, particularly the footwear and textile industries, which he described as Albania’s largest exporters.

Meanwhile, the association proposes a grant scheme for technology, automation, robotics and digitalisation. It says the scheme would help manufacturers compete as Albania approaches European Union membership.

/a.p./

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