Alliance of Free Professionals opposes 2027 fiscal package: tax burden rises, competitiveness at risk

The Alliance of Free Professionals (APL) has voiced concern about the 2027 fiscal package, warning that the proposed measures could raise businesses’ tax burden and administrative costs and weaken their competitiveness. “The package does not ensure sufficient coherence between fiscal objectives and concrete measures,” the group said in a position reported by Top Channel.

The figures according to the APL

According to the APL, the package targets about 14 billion lek in extra revenue a year, roughly 0.6% of GDP. Among the measures it lists are raising the dividend tax from 8% to 15%, standard VAT from 20% to 21% and VAT on tourist accommodation from 6% to 10%, cutting VAT on basic foods from 20% to 6%, and lowering the VAT registration threshold from 10 million to 5 million lek.

The group’s calculations show that when profit is fully distributed, the combined burden on profits and dividends rises from about 21.8% to 29.45%. For an unchanged net price, the higher standard VAT pushes up the gross price by about 0.83%, while basic foods could become up to 11.7% cheaper, but only if the benefit is fully passed on to consumers.

The APL notes that 2026 revenue came in about 20.1 billion lek above the original plan, that about 25.5 billion lek of capital investment went unrealized in 2025, and that the Supreme State Audit (KLSH) found economic damage of about 26.2 billion lek. It says the International Monetary Fund has recommended a higher VAT threshold of about 8 million lek.

The demands

The group calls for the package to be revised before approval, real consultation with stakeholders, publication of a full economic and budget impact assessment for every measure, a rethink of the higher taxes on profits and dividends, and protection for small businesses and freelance professionals. Raising revenue, the APL stresses, should not be “an end in itself.”