2027 draft budget/Rama calls ministers and Socialist Party political leaders to a meeting

This Friday, Prime Minister Edi Rama will hold a meeting with government ministers and the Socialist Party’s political leaders in the counties. The meeting is expected to begin at 9:30 a.m.

The meeting is taking place during a politically charged period, following protests held in Tirana in recent days. The 2027 draft budget, together with the fiscal package, is also expected to be discussed at the institutional meeting.

At 10:00 a.m., just 30 minutes after the prime minister’s meeting begins, the Committee on the Economy, Employment and Finance will begin presenting the draft law on the 2027 budget and the proposed amendments to fiscal legislation.

The proposed changes affect laws on excise duties, Value Added Tax (VAT), national taxes, income tax and tax procedures.

Among the changes to the 2027 fiscal package made public by Rama is a reduction in VAT on basic food products, from 20% to 6%. According to the prime minister, this measure will add 150 million euros per year to family incomes.

At the same time, the standard VAT rate for goods and services not included in the basic basket is expected to rise from 20% to 21%.

The package also provides for the doubling of the dividend tax, from 8% to 15%. Rama has stated that the tax on business profits will remain at 15%.

New rules have also been proposed for income tax on salaries. The upper limit of the 13% tax bracket will be moved from 200,000 to 300,000 lekë, a change that, according to Rama, will affect around 32,000 taxpayers. At the same time, a new 30% bracket will be created for salaries exceeding 700,000 lekë per month.

For small businesses, the annual turnover threshold for inclusion in the VAT scheme is proposed to be halved, from 10 million to 5 million lekë.

Meanwhile, in the hotel sector, VAT on accommodation services is expected to rise from 6% to 10%, with the exception of agritourism.

The draft budget and fiscal package will be reviewed by Parliament, which will also decide on the final content of the amendments.