Finance Minister Shkelqim Cani said the new fiscal package would be ready by mid-year and that the voice of the business community will be heard
TIRANA, Jan, 21 – Government has announced a new review to the fiscal package approved in late December 2013, pledging transparency and public consultations with the business community. Speaking in a meeting with the Foreign Investors Association, Finance Minister Shkelqim Cani apologized for lack of consultations in the 2014 fiscal package, strongly opposed by Albanian and foreign business community because of increasing the corporate income tax by 5 percent to 15 percent.
The Minister said the quick approval of the fiscal package was a result of the high level of hidden public debt left over by the former government, estimated at 10 percent of the GDP.
Urging the business community to participate in the drafting of the new fiscal package, Cani said the new fiscal package would be ready by mid-year so that the business community is given more time before the budget and the fiscal package are approved later in October.
Last December, business associations came out in unison against the new fiscal package the Socialist-Party led government prepared for 2014, denouncing lack of transparency and consultation. Business communities argued government must first reduce informality rate, estimated at around 30 percent of the GDP before increasing taxes.
Representatives of business associations also warned Albania risks losing its competitiveness on the attraction of foreign direct investment considering that it is surrounded by countries applying the 10 percent flat tax system.
In its 2014 fiscal package the new government switched to progressive taxation, abandoning Albania’s10 percent flat tax regime on personal income and corporate tax in force from 2008 to 2013. Taxes on fuel, tobacco and property were also raised.
