2018 fiscal package: Gov’t withdraws from VAT on small businesses, sets value-based property tax

TIRANA, Oct. 25 – The ruling Socialist Party has withdrawn from its intention to extend the 20 percent value added tax on all small businesses and set lower than expected property tax rates on households and businesses. In its 2018 fiscal package, the VAT threshold on businesses has been lowered to annual turnover of 2 million lek (about €15,000), down from a current 5 million lek (€37,000) while the property tax will be collected on a value-based formula applying a 0.05 percent rate on homes and 0.15 percent on business facilities. Finance Minister Arben Ahmetaj says the lower VAT threshold…