Konfindustria has submitted its comments, requests and proposals on the draft 2027 fiscal package to the Parliament of Albania. In its document, the organization warns that the economic outlook for that year is pessimistic and that declining domestic production, combined with an expected reduction in informal income, could put the stability of the lek at risk.
One of the indicators highlighted by Konfindustria is the trade deficit: for 2026, it is projected to exceed €5.8 billion, the largest negative figure on record, worsening by more than €200 million compared with 2025. According to the organization, this trend points to weakening domestic production capacity and a high dependence on imports.
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Production forecasts are also on a downward trajectory. Industry is expected to record its fifth consecutive year of negative performance, while agricultural production is expected to do so for the fourth year in a row. Konfindustria views these developments as signs that the Albanian economy is losing competitiveness against countries in the region.
The organization also raises concerns about construction, a sector that over the years has accounted for approximately 18% of gross domestic product. It says the sector’s heavy reliance on informal financing and SPAK’s crackdowns on illegal activities could seriously affect its performance. Tourism, meanwhile, is rapidly losing competitiveness against countries in the region, in its assessment.
Konfindustria warns that the expected contraction of informal sources of income, together with a sharp decline in domestic production, threatens the stability of the lek. It says the consequences could extend to the economy, financial and social stability, and the constitutional order. This is the organization’s warning, not a confirmed assessment that a currency crisis is imminent.
The document identifies closed markets characterized by cartels, oligopolies or monopolies—particularly in strategic sectors—as obstacles, along with high corruption and weak executive institutions. Konfindustria also cites the dumping-style trade policies of competing countries and the lack of a response from domestic institutions, as well as growing fiscal, financial and institutional competition from countries in the region and beyond to attract investment.
Some of the proposals concern fuel. The draft package provides for scrapping the 27-lek-per-liter circulation tax, a measure welcomed by Konfindustria, which nevertheless calls for guarantees that consumers and businesses will benefit. According to the organization, a lack of competition in port infrastructure, storage, and wholesale and retail trade creates the risk that the tax relief will become, in part or in full, additional profit for traders.
The organization says the draft package documents do not explain how the removal of the tax will be reflected in the final price of diesel and gasoline. It also opposes the proposal to make up for the resulting shortfall in budget revenue by increasing annual vehicle taxes. In its view, this would merely shift the tax burden from fuel to vehicle ownership without lowering overall transport costs for consumers and businesses. Konfindustria says that higher costs than in countries in the region would continue to undermine the competitiveness of domestic industry, agriculture and services.
If the tax cut is not reflected in fuel prices, consumers could end up paying both higher annual vehicle taxes and a price that does not include the promised relief. Konfindustria estimates that, depending on how much of the tax cut is not passed on, the additional cost could exceed €200 million a year compared with the current system. It says that raising VAT from 20% to 21% alone could increase fuel prices by around 2 lek per liter.
For annual motor vehicle taxes, Konfindustria calls for the rate in Albania to be no higher than the average corresponding tax in Kosovo, Montenegro and North Macedonia. It also proposes setting a legal reference ceiling for final fuel prices at no more than the average of comparable prices in those three countries.
Another proposal is to establish a National Fuel Authority under the Parliament of Albania. According to Konfindustria, this body should continuously monitor price ceilings, quality, volumes traded and strategic reserves.
The organization also calls for other fuel taxes to be reorganized, including those linked to concession services, and for swift legal measures to protect quality standards. It proposes verifying and penalizing abuses involving quantities sold at fuel stations, including concessionaires responsible for this service, and cracking down on smuggling, which it says harms the budget, consumers and businesses. Konfindustria also calls for a comprehensive reform of vehicle registration and taxation, accompanied by a full amnesty and, subsequently, stricter rules for taking vehicles off the road.
For food products, the draft package proposes cutting VAT from 20% to 6% on 54 items. Konfindustria warns that there is no institutional plan to ensure the relief is passed on to the prices consumers pay. In a market where, it says, oligopolistic groups and cartels operate, the 14-percentage-point cut could become additional profit for trading companies without delivering the intended benefit to households.
Konfindustria calls for broad public and economic debate before the standard VAT rate is raised from 20% to 21%, and for businesses to be given sufficient time to prepare. It notes that the accompanying materials do not provide a clear analysis of the short-term effects on inflation or the impact on economic and financial stability, competitiveness, investment and citizens’ well-being. According to its preliminary estimates, the immediate increase in inflation could range from 0.6% to 1.7%.
Regarding the proposal to increase corporate income tax from 15% to 17%, the organization says the 17% rate should apply only to businesses operating in closed markets. This group includes concession companies, those operating under public-private partnerships (PPPs), businesses with strategic investor status, and companies operating under state licenses in closed markets, such as banks and telephone, mining and fuel companies.
Under Konfindustria’s proposal, the 17% rate should also apply to all companies conducting commercial transactions with the above categories. For every other category of business, it calls for the current 15% corporate income tax rate to remain in place.
