'Blocking Destruction' of Frequent Fiscal Changes and Doing Business in Albania
The promise of zero taxes by 2029 ends on January 1, 2023, freelancers will be taxed up to 23%. The government will not recognize the abusers, punishing all freelancers.
Security is the main basis that promotes and develops business in a society.
The more uncertain and changeable the structure where businesses operate, the less business is promoted and developed.
The problem is that those entrepreneurs who have decided to do business, not only get stuck, rather than supported, but pushed to take their ideas and implement them in other countries where they have more incentives and opportunities especially in the early stages, which are known to be the most difficult.
One of the most important and interesting statistics of new businesses is that only 4 out of 10 new businesses, reach the 3rd year, thus 60% of new businesses fail and do not reach the 3rd year. This number increases and goes to 70% for the 5th year.
Moreover, about 90% of start-ups fail, in a longer period of time.
Given the notion of capitalism "Creative Destruction", which means the development of the economy through the creation of new businesses, which being more efficient and innovative, replace the old ones, that consequently exit the market, and the market improves for the public, having cheaper and at the same time better offers than the previous ones. An essential condition for this to happen is the CREATION, meaning the opening and facilitation of the opening of a large number of small businesses, in order to improve the market and replace old non-efficient businesses, which contribute less to the public with their offerings.
Something else is happening here: "Blocking Destruction"
This is a very big cost for an economy and the well-being of a country, especially for a small country like Albania, which should have a completely different approach, not only to stimulate small businesses within the country, but also attracting entrepreneurs from abroad to come and invest in Albania.
Freelancers should be considered one of the most “in need” support groups, as the difficulty of selling their service is relatively high. For example, compared to a small "mini-market" business where customers will come one way or another, as they have a constant daily need for food products, a freelancer has to go through a lot of hassle to ensure a client, and in even more difficulties, to retain and keep him/her. This makes the job more difficult, especially in the initial stages for freelancers.
This is a very negative news for the Albanian entrepreneurship, putting an unnecessary barrier to freelance professionals, including foreign ones, to have a base of operations in Albania.
The hypocrisy lies in the fact that young entrepreneurs who enter a path full of difficulties with their full will and courage, taking on a very high risk of failure and putting their life savings at stake are considered "abusive". And thousands of cases of large businesses, which commit tax evasion with various maneuvers, as well as those who operate with undeclared money in various fields, distorting and blocking the market and giving a direct blow honest enterprise are not considered ABUSIVE.
I have a question: Can you buy a house in Tirana?