Fiscal Package 2027 is facing strong opposition from business organizations, which warn that increases in several taxes could weigh on entrepreneurship at a difficult moment for costs, exports and the exchange rate. The criticism is not limited to the content of the measures, but also to the way they are being pushed forward, according to business representatives, without real consultation.
Which measures are being opposed
At the center of the objections are several of the changes envisaged in the package: raising the corporate profit tax to 17%, increasing the dividend tax from 8% to 15%, raising VAT for tourism from 6% to 10%, and lowering the VAT threshold to 5 million lek.
The Tirana Chamber of Commerce and Industry and Pro Export Albania say these measures will increase the fiscal burden on businesses at a time when part of the business community is facing high operating costs and the effects of the euro’s depreciation.
Chamber of Commerce: not against reform, but against a heavier burden
The Chamber of Commerce says it supports reducing VAT to 6% for basic food basket products, a request that, according to it, has been submitted for years. But it opposes having this relief accompanied by other tax increases for businesses and consumers.
According to the Chamber’s argument, with the corporate profit tax at 17% and standard VAT at 21%, Albania would rank among the countries with the highest rates in the Western Balkans. Likewise, the increase in the dividend tax to 15% is regarded by it as a blow to reinvested profits and domestic capital.
Tourism and small business at the center of concerns
Another contentious point is VAT for tourism. According to the Chamber of Commerce, the increase from 6% to 10% comes at an inappropriate moment for the sector, when the euro has weakened and contracts for the 2027 season are being signed at fixed prices.
There is also opposition to lowering the VAT threshold to 5 million lek. Business representatives argue that this will directly affect small shops, artisans and neighborhood services, increasing the risk that some of them may be pushed toward informality.
Accusations of lack of consultation with business
Beyond taxes, business is raising questions about the process. The Tirana Chamber of Commerce says that on October 9 it sent the Ministry of Finance and the Ministry of Economy and Innovation the proposals and recommendations of the business community, but has received no response.
According to this version, the contents of the package became known through the media and no consultation meeting was held with representative organizations. This claim shifts the debate from fiscal rates to the transparency of decision-making and the way policies are built that directly affect the market.
What business organizations are asking for
Pro Export Albania, which represents the interests of the manufacturing and exporting sector, warns that a further increase in the fiscal burden comes at a time when this sector has for years been facing the euro’s depreciation, rising costs, reduced production capacity and job losses.
The Chamber of Commerce is asking for the suspension of the changes that increase tax rates until consultations with business are held, the preservation of the current rates for the corporate profit tax, standard VAT and the VAT threshold, as well as a review of the proposals on dividends and tourism. It is also calling for publication of the impact analysis on investment, employment, prices, consumption, informality and competitiveness.
At its core, the clash is not only about tax percentages, but about the real cost they may have for the economy and the lack of a consultation process that business considers necessary before any final decision.
Fiscal Package 2027 is thus emerging as a test not only for tax policy, but also for how institutions listen to or sideline the actors directly affected by these decisions.