AmCham concerned over unresolved business barriers

TIRANA, April 22 – The American Chamber of Commerce in Albania continues reiterating its unresolved issues over VAT reimbursement, tax re-audits, and frequent amendments of laws. “Issues are mainly related with the rule of law in Albania, the application of certain rules and regulations in the fiscal and legal system, and others which expound the issues faced by the business community operating in Albania,” said Benard Shehu, the AmCham representative, Secretary and Board Member at a recent a roundtable of EU representatives and business community.
The Chamber concern over VAT reimbursement is that it is not done in consistence with the law and it is very selective. “Failure to refund VAT due to payers on a timely basis is significantly affecting AmCham members and many in the entire business community.”
For several times in row the Chamber remains concerned over repeated inspections by the tax administration. “Tax-Re-Audits have become a normal practice of the tax authorities. Law reinterpretations and evaluations of the tax amounts of the last five years are regularly reported. In many cases businesses are asked to go to court and solve the issue there.”
The Chamber is also worried that frequent amendments of laws result in an unstable legal environment and make it difficult to predict the cost of doing business in the coming years.
Lack of dialogue engagement by government officials is another issue listed by the Chamber. “Transparency in the relations business-administration is needed and public hearings in the law-making process is required. Establishment of a periodic dialogue between the business and the government is essential and needed — government representatives should apply the respective law and recognize the importance of the Business Consultative Council and the Tax Council functioning.”
The American Chamber of Commerce also urges solution for property registration and intellectual and industrial property issues.
“Solutions for property registration issues as a necessity to attract and facilitate the activity especially for foreign investors. Albania has a need to increase direct investments and this may be helped by giving legal guarantees for unencumbered property rights. Solutions with solid legal basis for the intellectual and industrial property issues. The IPR enforcement needs a serious input in bringing Albania towards the standard of other EU countries and in bringing more confidence to local businesses and foreign investors on those issues.
Henry Jardine, the Deputy Chief of Mission for the U.S. Embassy in Albania, warned difficulty experienced by current American businesses to Albania could discourage other U.S companies from coming to Albania where they bring employment and innovation.
The American Chamber of Commerce in Albania, representing over 200 members from a diverse list of industries has recently warned of a severe campaign by tax inspectors with repeated and unjustified controls is hampering the business life in Albania.