Business
Albanian Producers' Union opposes 2027 fiscal package: tax hikes would cost 85 million euros a year
The producers' association wants business to be consulted before expected increases in profit tax, dividend tax and VAT, and before the VAT registration threshold is lowered.
By ANN Newsroom · Newsroom
October 27, 2026, 17:20 · Updated 18:42 · 2 min read
In brief
- The preliminary proposals foresee a profit tax of 17%, up from 15%, a dividend tax of 15%, up from 8%, and VAT of 21%, up from 20%.
- According to the association, the higher profit and dividend taxes would cost businesses about 85 million euros more a year.
- Lowering the VAT threshold to 5 million lek would bring about 17,516 new taxpayers into the scheme.
The Albanian Producers' Union on Tuesday came out against the changes the 2027 fiscal package is expected to bring, calling on the government to consult business before taking decisions that affect enterprise. In the afternoon, Prime Minister Edi Rama responded on X to the discussion of the new measures, calling it a “salad of hatred and ignorance” built on half-baked working documents and announcing that the government would have its say the next day, with the approval of the first budget above 10 billion euros.
What the proposals foresee
According to the association, the preliminary proposals foresee raising the profit tax from 15% to 17%, the dividend tax from 8% to 15% and the standard VAT rate from 20% to 21%. The list also includes raising the reduced VAT rate for tourism from 6% to 10% and lowering the mandatory VAT registration threshold from 10 million to 5 million lek in annual turnover, starting Jan. 1, 2027.
The association's preliminary estimates show that the higher profit and dividend taxes alone would cost businesses about 85 million euros more a year, while the lower VAT threshold would bring about 17,516 new taxpayers into the scheme.
Fears for investment and informality
The producers warn that the changes, if confirmed, would cut after-tax profits and the funds companies use for investment, modernization and expanding capacity. They are also concerned about the effect of higher VAT on prices, margins and competitiveness, especially in tourism. For small businesses entering the VAT system, the association says, reporting obligations and liquidity needs would grow, while without effective measures against informality the risk of unfair competition rises.
The association is calling for the proposals and impact assessments to be published, for structured consultations with the business community and for a sufficient adjustment period. “The voice of enterprise must be heard before any economic decision-making,” the statement said.
