The Albanian government has presented a new package called "Fiscal Peace", which aims to ease the financial burden for thousands of businesses and close once and for all the tax history of the past.

The Minister of State for Entrepreneurship and Business Climate, Delina Ibrahimaj, during a meeting with businesses in Elbasan, where Prime Minister Edi Rama was also present, stated that the initiative will create a new cooperative relationship between business and the tax administration.

According to the minister, even though most businesses are formalized and report regularly, a significant part of them has operated in the informal economy in the past decades. It carries unpaid obligations that date back more than 10 years.

A key element of the tax amnesty is the cancellation of debts, interests, and arrears for businesses that have obligations older than 10 years.

“For debts dating back 5 to 10 years, all arrears and interest will be canceled for those businesses that decide to repay the principal obligation in a single installment – ??and in this case, 50% of the obligation will be canceled. Meanwhile, for those who do not have the financial means to make the payment immediately, the opportunity will be offered to enter into a 12-month payment agreement, with a cancellation of 25% of the principal obligation,” Ibrahimaj said.

Regarding debts incurred by businesses in the last 5 years, related to successive shocks such as the earthquake, the pandemic, and the price crisis, the government will offer cancellation of fines and arrears for all businesses that fully repay the principal obligation.

“The last element of forgiveness is related to businesses that have debts of 1-5 years, which are those businesses that have been hit by these successive crises. We will allow those businesses that pay the full obligation to cancellation of fines and late fees,” the minister declared.

The minister further emphasized that the purpose of this proposal is to create a clear and fair fiscal environment, which gives businesses the opportunity to move forward without fear and focus on growth and development.

In his speech, Rama said that the Ministry of Finance is working with the National Agency for the Information Society on revenue administration where Artificial Intelligence will be imposed on visualization. Rama announced that the government is now at an advanced stage and stressed that there will no longer be a need to send inspectors for inspections. Transactions will all take place in real-time.

During his speech, Rama also focused on the government's assignment of references to accommodation structures, as they do not declare the real number of vacationers and the real use of rooms.

Rama said that in the first three days there have been 600 requests from hotels to make an agreement with the government, which states that during the peak of the tourist season, hotels will declare 65% occupancy, while during the off-season only 30%. According to Rama, this is a favorable balance for hotels.