German businesses operating in Albania have also joined the opposition to the Fiscal Package 2027. The German Industry and Commerce Association (DIHA) has warned that the tax increases proposed by the government could weigh on companies' activity, affect consumer prices and limit new investments.
In its response, DIHA raises concerns that the fiscal changes were drafted without full consultation with the business community. According to the association, the draft laws were not published for public consultation, while the final versions were submitted to the Tax Council only shortly before submission to Parliament.
German investor representatives point out that the changes scheduled to come into effect on January 1, 2027, leave companies very little time to adapt their contracts, budgets and investment plans.
One of the main objections is related to the increase in dividend tax. According to DIHA, this measure could make Albania less attractive to investors, especially compared to other Western Balkan countries.
Concerns are also raised about the increase in the standard VAT from 20% to 21%, which according to the association could be reflected in the prices of goods and services. German businesses warn that this increase could dilute the benefit that citizens are expected to have from the VAT reduction on basic food products.
There is also criticism of the increase in VAT in the tourism sector and the lowering of the VAT registration threshold. DIHA estimates that these measures will increase costs for small businesses and tourism companies, affecting their competitiveness.
The association warns that the higher tax burden could limit the funds that companies use to expand their activities, modernize and create new jobs.
However, DIHA positively evaluates the decision not to increase corporate income tax, as well as the proposed relief for families and employees. The association also proposes reducing VAT on electricity, with the aim of reducing costs for consumers and businesses.
In conclusion, German businesses are calling on the government and Parliament to review the contested measures, hold consultations before approving the package, and provide for a transitional period for implementing the changes.
DIHA's reaction comes after objections expressed by other domestic and foreign business organizations, which have raised concerns about the impact of the new taxes on the economy, investment and employment.
