With a legal initiative by SP MP Blendi Klosi, the government plans to extend the profit tax amnesty to businesses that will benefit from special status for four- and five-star hotels or resorts until December 2026, BIRN reported on Friday.

According to the current tax legislation, the exemption from corporate income tax is set to expire on December 31, 2024.

In the draft law submitted to the Assembly in December, Klosi proposes:

"Entities that operate in accommodation structures as 'Hotels/Resorts with four and five stars, special status,' as defined in the legislation in the field of tourism and that are holders of a registered trademark and internationally recognized 'brand name,' are exempt from corporate income tax for 10 years, for those structures that obtain special status by December 2026."

The draft stipulates that the exemption takes effect from the start of the economic activity of the accommodation structure, but no later than three years after obtaining special status.

In the accompanying report, Klosi argues that this legal initiative aims to "incentivize the tourism sector by reducing the tax rate to 0% for the first 10 fiscal years for hotels and resorts."

Since 2019, Prime Minister Edi Rama's government has granted special investor status to a group of businessmen in five-star accommodation structures. These businesses benefit from several fiscal advantages, including exemption from the infrastructure tax and a reduced value-added tax (VAT) rate of 6%.

In parallel with Klosi's proposal, the Assembly is examining another initiative by a Socialist MP to extend the deadline for the law on strategic investments.

Jorida Tabaku, an MP from the Democratic Party, criticized Klosi's proposal as a "special law" that serves a select few and undermines the rule of law. In a Facebook post, Tabaku wrote:

"Socialists persist with their proposals for special laws that erode the foundations of an honest state and build a government for the minority at the expense of the majority."

She labeled the proposal another "gift" to the oligarchs, stating:

"Special laws tailored to the interests of a privileged minority do not create an economy for Albanians. Instead, they deepen inequality and corruption." Tabaku concluded with an appeal for a new investment law.