The draft laws of the 2027 Fiscal Package paint a mixed picture: the government is presenting the VAT cut for basic food products as relief, but at the same time it is proposing other fiscal increases affecting tourism, business and consumption as a whole.
Lower VAT for basic food products, but the list remains in the government’s hands
According to the draft laws prepared by the Ministry of Finance, VAT on a list of basic food products is proposed to be reduced from 20% to 6%. This category includes bread and flour, milk and natural yogurt, eggs, rice, pasta, cooking oil, meat, basic fish, fresh fruit and vegetables, legumes, sugar and basic food products for infants.
However, the detailed list is not provided in the draft as a closed list, but will be determined by a decision of the Council of Ministers. This leaves room for part of the real effect of the measure to depend not on the law itself, but on subsequent executive decision-making.
Increase for accommodation and the general VAT rate
In the same package, the government proposes that VAT for five-star hotels, agritourism and accommodation services in tourist structures be increased from 6% to 10%.
The general VAT rate is also expected to rise to 21%, from the current 20%. So, alongside the advertised relief for some food products, the draft also foresees a broader fiscal increase across the economy.
More businesses brought into the VAT scheme
One of the most sensitive changes for enterprises concerns the minimum registration threshold for the VAT scheme. According to the proposal, it is being lowered from 10 million lek to 5 million lek in annual turnover.
In the official version, this move is expected to include around 17,516 new taxpayers, who will have to apply VAT rules. For small businesses, this means not only a tax obligation, but also an additional administrative and accounting burden.
Changes to wage tax and a new 32% rate
The package also affects income from work. For gross salaries above 200,000 lek per month, the threshold from which the 23% rate is applied is proposed to rise to 300,000 lek.
According to the draft, the 23% rate will apply to salaries from 300,000 to 700,000 lek, while for income above 700,000 lek per month a new 32% rate is envisaged for the first time.
Fines, cash and tobacco excise
The draft laws also foresee tighter mechanisms for collecting tax obligations, as well as an expansion in the application of fines for cash transactions.
The package also includes a gradual increase in tobacco excise until 2033. On the other hand, businesses are expected to be eased from the obligation of double submission of financial statements, while the special VAT regime for ALPEX is proposed to be extended until Albania’s accession to the European Union.
Overall, the 2027 Fiscal Package does not simply present a series of relief measures, as its political presentation might suggest. The draft combines targeted reductions with other tax increases and an expansion of fiscal control over businesses and transactions.
The real debate is expected to focus not only on percentages, but on the concrete effect these measures will have on prices, the administrative burden and the way the state chooses to collect more revenue.