DP MP Jorida Tabaku

2027 Fiscal Package Burdens Businesses, Families; DP MP

The Democratic Party MP Jorida Tabaku opposes the expansion of the value-added tax (VAT) scheme and calls for stable regulations for enterprises, support for domestic production, and accountability regarding public spending.

In a statement for local business news provider Monitor, Tabaku warned that the 2027 Fiscal Package, presented by the government, will increase costs for small businesses and create uncertainty for Albanian families. She voiced her opposition to the proposed lowering of the VAT registration threshold - from Lek 10 million to Lek 5 million - as well as the increase in the standard VAT rate to 21%.

According to Tabaku, bringing businesses that are currently outside the VAT scheme into its scope will force entrepreneurs to face difficult choices: raising prices, accepting lower earnings, or risking closure. She also warned that this could lead to an increase in informality and the artificial fragmentation of business operations, as owners might split their activities to remain below the new threshold.

The MP emphasized that behind every small business lie the savings and hard work of an entire family. She argued that a business's turnover does not represent the owner's personal income, as it must cover payments to suppliers, rent, and other operational obligations. Addressing the proposal to reduce the VAT on food products to 6%, Tabaku stated that such relief is necessary, but lack of competition and market concentration could prevent the full benefit of the tax cut from being passed on to the consumer.

Regarding the circulation tax, Tabaku rejected the characterization of shifting the payment - from fuel to an annual vehicle levy - as a form of relief. She argued that what truly matters to citizens is the overall financial burden they bear.

In light of these changes, the MP noted that a proposal is being discussed for a fiscal code - featuring clear rules and policies to support businesses - which she described as a "constitution for business." She also called for better alignment between education, the labor market, and the productive sector, as well as greater accountability regarding the use of public funds.