Businesses in Albania seeks lowering of some taxes

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Less than one week before the June 25 general elections, the business community in Albania has requested the Albanian political parties to consider the reviewing of several taxes which are currently being applied in the country, local media reported Monday.

The representatives of business community here met Monday and pointed out the need to reduce Value Added Tax (VAT), which is currently at the level of 20 percent.
Moderate reduction of the level of VAT, progressive decrease for specific sectors and reviewing of local government taxes for manufacturing businesses, because they are very high, business representatives said.

On the other hand, the business community also demanded reduction of local government taxes and the reduction of costs for farmers.

Since Albania has already officially opened the summer season, the business representatives demanded the immediate implementation of recent government’s decision which foresees the reduction of Value Added Tax to 6 percent.

Bylaws of the new law on Vat for tourism must be drafted, because June 6 should have seen the enactment of this bill and due to the caretaker ministers, this has not yet happened, they told local media.

On the other hand, economy experts here have said that tax policies in Albania were chaotic and that no electoral program offered adequate support for the main two priorities, education and health.

They said that the reduction of tax on profit and other sources of incomes to no more than 12 percent would be a real reduction of the tax burden.

According to economy experts, Albania should keep lower taxes for at least ten years in order to be become more attractive to foreign businesses and provide a positive impact to the economy.

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