Business
Malaj: 2027 fiscal package redistributes taxes, not raises them; Italian chamber seeks impact analysis
The finance minister told Parliament that the net effect of the measures is zero or minus 300 million lek for the budget, while Italian business in Albania calls for predictability.
By ANN Newsroom · Newsroom
October 30, 2026, 15:45 · Updated 19:02 · 2 min read
In brief
- Malaj: revenue from the dividend tax will fund widening the wage band from 200,000 to 300,000 lek.
- According to the minister, the only net extra revenue comes from the tobacco excise, harmonized with EU levels.
- The Italian Chamber of Commerce welcomes 6% VAT on basic foods but is concerned about the dividend tax and 21% VAT.
Finance Minister Petrit Malaj on Friday defended the changes in the 2027 Fiscal Package before Parliament's economy committee, rejecting criticism that they increase the tax burden. “We don't have a tax increase, but a redistribution of taxes,” he said, describing the package as neutral for the budget.
The minister's math
According to Malaj, money from the higher dividend tax will go toward widening the wage band, which moves from 200,000 to 300,000 lek, meaning additional income for the middle class. He said cutting VAT on basic products from 20% to 6% costs more than raising the standard VAT rate from 20% to 21% brings in. The resulting gap of about 20 million euros, he said, is covered by lowering the VAT registration threshold from 10 million to 5 million lek, a demand of international institutions, including the IMF.
The minister added that removing the circulation tax from fuel and shifting it to annual vehicle taxes creates a shortfall of about 5 billion lek. “The effect is zero or minus 300 million lek for the state budget,” Malaj said, citing the tobacco excise, raised to align with the EU, as the only additional revenue.
Italian business seeks stability
Also on Friday, the Italian Chamber of Commerce in Albania (CCIA) asked that the proposals be accompanied by a full analysis of their economic effects. It welcomed keeping the corporate income tax at 15% and the 6% VAT on basic foods, but stressed that the impact of the latter depends on whether it is reflected in final prices. The CCIA voiced concern about raising the dividend tax from 8% to 15% and the standard VAT to 21%, noting that neutrality for the budget does not necessarily mean an equal distribution of costs between businesses and households.
The chamber called for simpler procedures, timely refunds and continued consultation during the review in Parliament. Earlier in the morning, the Foreign Investors Association of Albania (FIAA) had also urged the government to reconsider the measures.
