TIRANA, Jan. 21 – The Construction Association has warned the quadruple of the tax of impact on infrastructure for new constructions in Tirana will increase apartment prices by Euro 150-250/m2. The association says the tax which has increased from 2 percent to 8 percent of the investment value for construction of new apartments will negatively affect the construction industry at this time of crisis.
Construction entrepreneurs say will initiate a legal battle against the new tax imposed by the Municipality of Tirana which they consider a ‘fine’ to construction entrepreneurs.
The construction sector, which has been struggling to recover since the onset of the global financial crisis in 2008, grew by 16.5 percent year-on-year in the third quarter of the year, being one of the key drivers of growth.
Only a dozen construction permits were issued in Albania during the third quarter of the year, hitting a quarterly record low since more than a decade, according to state statistical institute, INSTAT.
The situation reconfirms the difficulty in dealing with construction permits in Albania, which was the key barrier for Albania’s sharp deterioration in the latest Doing Business report published by the World Bank.
