Confindustria: Albanian government must apply lower and flat taxes for several economic sectors

After the parliamentary Economy Commission published the new proposals for Budget 2015 and the new fiscal package, Confindustria has required further information and explanation on the effect and the impact these predicted fiscal measures will have in each economy sector.

The announcement published by Confindustria quotes that “the absence of the concomitant economic argumentations of the Budget 2015, as happened in 2014, turns the fiscal policy into a short term tool to ensure incomes for the state budget and this risks the country’s economy in a long term perspective.”

According to the declaration, the overall increase of taxes by 50% for personal incomes, the increase of the energy price, the maintenance of VAT at 15% and the increase of the circulation tax does not promises for a stable economic development but conversely disrupts the purchasing power of customers and the and competition ability of Albania compared to regional countries. Regional countries apply a flat tax regime of 10% on the above mentioned tax subjects and provide competitive energy and hydrocarbons prices.

Confindustria suggests that the best way to ensure incomes for the state budget and for a stable economic growth, the Albanian government must show professionalism in the fiscal management by applying lower and flat taxes.

Despite these claims, one of the positive sides of Budget 2015 is the removal of the mining rents from the local government. Confindustry encourages the Albanian government to continue the fiscal decentralization in support to territorial administrative reform.