The American Chamber of Commerce in Albania has openly come out against the proposed changes in the 2027 Fiscal Package, questioning the logic of raising taxes at a time when businesses are seeking predictability rather than new costs. In its response, AmCham calls on the government not to pass the package as a formality, but to publish analyses of the economic and social impact and conduct real consultations with the business community.
Direct request to the government
According to the American Chamber of Commerce’s public position, the new fiscal package significantly increases the tax burden on businesses and affects the conditions on which companies have built their activity, financing and investment plans.
AmCham is asking the government to reconsider the proposed measures, make public its analyses of the economic and social effects, and not treat consultation with businesses as a formal procedure with no real weight in decision-making. For a package with such broad impact, it says a clearer justification is needed than the one provided so far in the official version.
Which taxes are being opposed
At the center of the objections are several simultaneous interventions in the tax system: the increase in dividend tax from 8% to 15%, the increase in the standard VAT rate from 20% to 21%, as well as other changes to reduced VAT rates and tax on employment income.
According to AmCham, these measures could reduce funds available for reinvestment, lower returns on capital and increase operating costs for businesses. Its warning is that the final effect may not be what the government expects in budget revenues if the new policies slow the development of enterprises and expansion plans.
Concerns over investment and competitiveness
The American Chamber also raises the concern that Albania competes in the region for foreign investment and that any tax increase is viewed by investors in comparison with other countries. In this reading, the problem is not only the fiscal burden, but also the signal sent about the stability and predictability of the business climate.
According to this assessment, unexpected changes without reasonable transition periods could undermine the confidence of current and potential investors. For companies with long-term investments and existing contracts, such a change affects decisions made under a different fiscal framework.
Risk for prices and families
Although the government presents easing the cost of living as one of the package’s objectives, AmCham questions whether the net effect for families will in fact be positive. According to the chamber, the reduction of VAT on some basic food products could be offset by the increase in the standard rate and in some reduced rates for other goods and services.
The American Chamber is calling for a clear analysis of the net impact on prices, purchasing power and household budgets, while also raising the question of how it will be monitored in practice whether the declared benefit from lower VAT will actually be reflected for the final consumer.
The alternative proposed by business
Instead of increasing tax rates, AmCham says the state should first focus on expanding the taxpayer base, reducing informality and improving tax administration. The message is clear: the burden should not first be increased on businesses that regularly declare and pay, while the potential for formalization remains untapped.
The organization also calls for the changes to be backed by in-depth fiscal studies and modelling, communicated transparently, and for clarification on whether these measures are in line with the Medium-Term Revenue Strategy and with commitments made to international partners, including the IMF and the EU.
In essence, AmCham’s objection is not limited only to the level of taxation, but to the way changes affecting business, investment and prices are being pushed forward without a full public file on costs and benefits.
The debate over the 2027 Fiscal Package, at this stage, is shifting from the rhetoric of budget revenues to the more difficult question for the government: why more is being asked of the formal economy without first proving that other alternatives have been exhausted.