The VAT reduction on basic grocery products could bring a price drop of around 10-12% in the first months of 2027, while changes to the VAT scheme for businesses and freelance professionals may push up the costs of some services. This is what economics expert Klodian Muça said, discussing the expected effects of the fiscal package for next year.
According to Muça, reducing VAT on grocery products is a measure that has been debated for nearly 30 years, but its impact on consumer prices may be lower than 14%, the figure that has been cited as an expectation. He argued that experience in other European countries shows that price cuts may be more noticeable at first, but over time retailers may change prices.
On the other hand, Muça warned that lowering the annual turnover threshold for inclusion in the VAT scheme, from 10 million to 5 million lek, could affect a considerable number of businesses and freelance professionals, including lawyers, engineers, architects, dentists and doctors. According to him, the rise in costs may be reflected in the prices of services offered to citizens. He also mentioned proposals to raise the tax on capital income from 15% to 17% and the tax on dividends from 8% to 15%, stressing that the final impact on prices will also depend on competition and market controls. Muça noted that the package may help ease the cost of consumption, but its effects should be assessed in relation to the changes that other services will face.
