Albanian producers oppose the 2027 fiscal package: Higher taxes could curb investment and competitiveness

The Union of Albanian Producers opposes the changes proposed in the 2027 fiscal package and is calling for businesses to be consulted before any decision affecting entrepreneurship is made.

In a public statement, the association expressed concern about preliminary proposals to raise the corporate income tax from 15% to 17%, the dividend tax from 8% to 15%, and the standard VAT rate from 20% to 21%.

Another proposal is to raise the reduced VAT rate for tourism from 6% to 10%. In addition, as of January 1, 2027, the annual turnover threshold for mandatory VAT registration is expected to fall from 10 million to 5 million lekë.

According to the association’s preliminary calculations, the increases in corporate income and dividend taxes could cost businesses an additional 85 million euros a year.

Meanwhile, lowering the VAT threshold is expected to bring around 17,516 new taxpayers into the system.

The Union of Albanian Producers warns that approving these measures could reduce after-tax profits and the resources companies have available for investment, modernization, and expanding production capacity.

The association also points out that higher VAT could affect prices and profit margins, harming demand and business competitiveness, particularly in tourism.

Small businesses entering the VAT system could face more reporting and administrative obligations, as well as greater liquidity needs.

The association warns that without effective measures to combat informality, a higher tax burden on declared activity could deepen unfair competition.

For this reason, the Union of Albanian Producers is calling for the fiscal proposals and impact assessments to be made public, structured consultations with the business community to be held before the changes are approved, and businesses to be given sufficient time to adapt.

“The voice of entrepreneurship must be heard before any economic decision is made,” the association said in its statement.