Meta: Albania has the highest burden on business

The President of the Freedom Party, Ilir Meta, says that the taxation of free professions is extremely high and unfair.

At a table held with freelancers, Meta said that "Albania has the highest burden for business, including freelancers".

Meta stated that the current tax system continues to be complex and fragmented, with many exceptions and preferential treatments, and penalized the free professions.

 

Ilir Mete's speech

The extremely high taxation of free professions is an unfair taxation

Albania has the highest burden for business, including for free professions

Tax rates have a substantial impact on businesses, affecting their profitability, investment decisions and overall financial health.

The corporate income tax rate is one of the highest in the region. Albania has a tax rate of 15%, while Kosovo, North Macedonia and Bosnia and Herzegovina have a tax rate of 10%. While in Montenegro it varies from 9 to 15%

The withholding tax rate is again one of the highest in the region. Albania has a withholding tax rate of 15%, while Kosovo, North Macedonia and Bosnia and Herzegovina have a tax rate of 10%.

The tax rate of free professions in Albania is more than twice as high as the countries of the region. The tax rate in Albania has increased from 15 to 23%. While in Kosovo and Montenegro the tax rate is 9%. And in North Macedonia and Bosnia and Herzegovina it is 10%

The standard tax rate of VAT is the highest compared to the countries of the region. In Albania, the standard rate is 20%, while in Bosnia-Herzegovina it is 17% and in North Macedonia and Kosovo it is 18%.

Payroll tax is progressive and tax rates are the highest in Albania. The tax rate in Albania varies from 0% to 23%, in Montenegro from 0% to 15%, in Kosovo it varies from 0% to 10% and in North Macedonia and Bosnia and Herzegovina the tax rate is 10%

The current tax system continues to be complex and fragmented, with many exemptions and preferential treatments, and penalizing the free professions.

There are several main concerns with the current tax system that are deepening inequalities between businesses and stimulating tax avoidance, and increasing

In the fiscal package approved for the year 2024, the Government approved the law on the taxation of professions, which creates differentiation between subjects by taxing free professions with income over 14 million at 15% and over 14 million at 23%

Free professions will be taxed at 15% with income up to 14 million lek, while small business with the first income level is excluded.

Free professions will be taxed at 23% with income over 14 million lek, while business with the same level of income over 14 million lek will be taxed at 15%.

While the free professions are taxed at 23%, the Government has waived the profit tax for hotels at 4/5 for a period of up to 10 years.

While free professions will be taxed at 23%, the Government will not exclude and create fiscal incentives for the Durres port project.

While the free professions will be taxed at 23%, the Government is preparing to approve the exemption and give all the fiscal facilities for arms production companies.

The fiscal burden of central taxes has been added to the increase of taxes at the local level

The municipality of Tirana in the period 2015-2019 has increased the property tax in terms of land tax, the tax on the impact on the infrastructure of public buildings, legalization and housing in mountainous areas, as well as the tax on educational infrastructure.

The municipality of Tirana has also significantly increased the number of fees.

The property tax has increased to about 2.5 times per m2 for residential areas, to about 1.5 times per m2 for commercial and service areas, to 2.6 times per m2 for areas in tourist villages from 2019 compared to the previous period.

Board tax for identification at 318 times for boards up to 4m2, for electronic advertising from 1.5 times to 2 times

The infrastructure impact tax has doubled up to 10 times on average, in an increase of 2.7 times due to the tax rate from an average of 3% (2-4%) to 8%, and an increase of about 4 times due to the increase of the taxable base from the investment value per m2 to the sales value

The cleaning fee has increased to 15% for families, to over 2.3 times for small business and to over 2.5 times for large business.

The public space fee has increased 10 times for businesses and 10 times for fairs

The Freedom Party will engage in a complete fiscal reform in order to guarantee:

Of a fiscal system that does not allow distortions and creates space for evasion and evasion.

Reducing the fiscal burden on business and providing a comprehensive and fair taxation according to everyone's ability to pay, according to the principle that he earns more, pays more.

A stable fiscal system with as few taxes as possible.

The restoration of flat taxation, with a 10% tax rate, reducing the fiscal burden, with the aim of formalizing the economy and improving fiscal administration.