Business
AmCham and FIAA oppose 2027 fiscal package, warning tax hikes undermine investor confidence
The American Chamber of Commerce and the Foreign Investors Association ask the government to reconsider raising VAT and the dividend tax, and to allow transition periods.
By ANN Newsroom · Newsroom
October 29, 2026, 12:50 · Updated 18:43 · 1 min read
In brief
- The package would raise the dividend tax from 8% to 15% and standard VAT from 20% to 21%.
- AmCham asks the government to publish its analyses and broaden the tax base before raising rates.
- FIAA warns that the fast pace and lack of consultation make long-term investment planning harder.
Two of Albania's largest business organizations came out on Thursday against the tax changes proposed in the 2027 Fiscal Package. The American Chamber of Commerce (AmCham) warned that a heavier tax burden could slow investment and hurt the country's competitiveness, while the Foreign Investors Association of Albania (FIAA) called for the package to be reviewed, Ekofin reports.
What the package provides
According to AmCham, the package raises the dividend tax from 8% to 15%, standard VAT from 20% to 21% and some reduced VAT rates from 6% to 10%. Income tax on employment also changes. The measures would take effect on Jan. 1, 2027.
AmCham stresses that the 6% VAT rate on some basic foods is meant to ease the cost of living, but higher rates elsewhere could partly or fully offset that effect. The organization objects to financing social measures mainly by burdening businesses that pay their taxes, citing under-execution of budget spending and the public finance surplus. It asks the government to publish its analyses, fight informality and provide reasonable transition periods.
FIAA: predictability is key to confidence
FIAA is especially concerned about the speed at which the measures are being introduced and the lack of consultation with businesses. In its view, sudden changes in rates or legislation add uncertainty and make long-term financial planning harder.
The association also cited recurring problems: frequent and poorly coordinated changes to tax laws, inconsistent interpretations and delays in VAT refunds. It is asking for full impact assessments and a clear explanatory report on the reasons for the measures and how long they will last.
