Taxation changes, range of first tax bracket to increase

Taxation changes, range of first tax bracket to increase

Prime Minister Edi Rama has announced that, within the next two months, the Albanian government will increase the range of the first tax bracket for business. 

Currently the tax free threshold sits at turnover of 5 million lek and the first tax bracket ranges from 5 to 8 million lek with the taxation rate of 5%. 

The government's proposal will see the range of the first tax bracket increase from 8million to 10 million lek. 

This will result in a tax cut of 10 percentage points for those businesses with a turnover between 8 and 10million lek, as they are currently taxed according to the second bracket's rate of 15%. 

The head of government presented the change in a meeting with the small business society, explaining that he believes this amendment will help to reduce informality.

"We will fight informality in this way," said Edi Rama.

The Small and Medium Business Association Chairman, Albert Nasto raised concerns about the level of government corruption as well as the current climate for doing business.

"Corruption is gangrenous for the business industry," alerted Albert Nasto.

Rama spoke sarcastically of the small business protests, while debating the figures that they presented.

Regarding the declaration on VAT inclusion, Minister of Finance and Economy Arben Ahmetaj said there will be no more than 6 boxes to be completed on the declaration form.

"Small business will only fill out 6 boxes for VAT," explained Arben Ahmetaj.

Overall, the proposals made by the government have been welcomed by small business. 

EMISIONET