The European Union Delegation in Tirana has reacted strongly to the Albanian government’s “fiscal peace” initiative, which is expected to be approved in the Parliament. In an official statement, the EU announced that the European Commission had raised “serious concerns” during discussions with the Albanian authorities, including at the meeting of the Subcommittee on Trade, Industry, Customs and Taxation held on 25-26 November.
According to the EU, the initiative risks discouraging tax compliance and should be accompanied by strong anti-money laundering safeguards. The Commission also stresses that Albania should continue to reduce tax exemptions and demands that all concerns raised be fully addressed before the package is approved.
"The European Commission has discussed the "Fiscal Peace" initiative with the Albanian authorities, including during the meeting of the Subcommittee on Trade, Industry, Customs and Taxation on 25-26 November. During these discussions, the Commission raised serious concerns regarding the risk that this initiative would discourage tax compliance. It also reiterated the need for the proposal to include strong anti-money laundering safeguards, while work continues on reducing the large number of tax exemptions. The Commission expects these concerns to be fully addressed," the EU response states.
The response emphasizes that any fiscal amnesty must be in line with the EU acquis and international standards, including Moneyval and FATF, and contribute to the fight against organized crime.
Strong opposition to the initiative was also expressed yesterday by the American Chamber of Commerce, which warns that the two proposed bills will forgive businesses over 2 billion euros in duties, fines and late fees. The organization criticizes the lack of consultation with foreign investors and the lack of transparency from the tax administration.
The American Chamber underlines that the ongoing problems with VAT, penalties in the energy sector, and practices of contesting below-cost sales demonstrate a lack of institutional communication and an increased burden on the business community.
