VAT bill turned into law

TIRANA, July 31 – With 78 votes in favour, the ruling left-wing majority MPs turned into law last week a bill on the value added tax, the most important tax accounting for more than one third of total government revenue.
The introduction of a new law on the value added tax in line with EU legislation is expected bring positive effects on the state budget starting 2015 as the 20 percent VAT rate will be reintroduced on several products and services which had been exempted.
The reintroduction of VAT on imports of machinery and equipment for investment purposes, worth 50 million (Euro 350,000) and over, is expected to have a positive impact of 300 million lek (Euro 2.1 million). Albania’s business community represented by the Konfindustria association says the reintroduction of VAT on imports of machinery and equipment for investment purposes would be a wrong step and with severe consequences to the country’s long-term development.
“The new law targets offering an appropriate and attractive environment, legal and fiscal security for Albanian and foreign investors with clearly defined rules, unifying Albania’s taxation system to the EU and offering free and fair competition,” says Finance Minister Shkelqim Cani.