Association of Italian Entrepreneurs complains: Albanian government is making us pay too many taxes

Association of Italian Entrepreneurs complains: Albanian government is making us pay too many taxes

Tirana, 19 August 2016/Independent Balkan News Agency

By Edison Kurani

Association of Italian Entrepreneurs in Albania expresses its concern about what it considers an aggravated business climate which is making their activity harder and harder.

In a press statement, this association mentions several main reasons for the deterioration of this situation, among which is the increase of taxes.

The association says that tax on profit has increased by 5% compared to several years ago and several other taxes are constantly rising.

“One of the taxes which is noticed since the very first moment of opening a business activity and which is unfair, is the tax on profit which is applied since the very beginning and is paid on monthly installments, otherwise the business shall be considered a debtor. As a result, we cannot receive an attestation that we are not debtors and this attestation is very important for Albanian bureaucracies and also when it comes to demanding loans from banks”.

The association proposes for this tax to be applied after the approval of the company’s annual balance sheet, if it is positive and not be decided without knowing what the company’s profit will be.

The association also stops on the progressive tax which amounts up to 24% and which replaced the flat tax of 10%.

“Progressive taxation has penalized many foreign companies which have transferred their capital to Albania, favored by the old tax system, which suddenly changed and as a result, also changed the performance of foreign businesses and that of Albanian businesses”, the association says.

The Association also says that many companies stopped their investments and some of them have completely withdrawn from Albania to try new destinations such as FYROM or Montenegro.

For the association, “all of these details have a negative impact in the economy of businesses, but also a direct impact in the Albanian economy, because tax increases automatically lead to an increase of prices in all sectors, including the most important ones which have a direct impact in the business economies, such as fuel and energy”. /