TIRANA, June 23 – The government has approved some changes to the key value added tax that will extend the number of exporting businesses benefitting automatic VAT refunds in 30 days.
Under the new changes, businesses exporting at least half of their production will benefit automatic VAT refunds, a rule which currently applies only to wholly exporting companies.
Finance Minister Arben Ahmetaj says the change will benefit some 1,050 enterprises or 40 percent of total exporters. Back in 2015, only 515 companies benefited automatic VAT refunds, one of the key concerns for the business community.
“This is a huge leap in easing this procedure which has been a continuous request by exporters,” said Ahmetaj.
The ruling majority is also about to introduce a new fiscal package that sharply reduces penalties against the business community and facilitates tax procedures. The unusual mid-year package comes one year ahead of the new general elections and after reports of deteriorating business environment by several key foreign and Albanian business associations. The bill expected to be approved next July also comes after a law envisaging fines of up to €70,000 on tax evasion was turned down by the country’s Constitutional Court earlier this year over “disproportionate” penalties to income and offences committed.
However, the new fiscal package will focus on cutting procedures and bureaucracy rather than taxes, which remain a key concern for investors along with the highly perceived corrupt justice system.
