The Italian Chamber of Commerce in Albania (CCIA) is monitoring the drafting of the 2027 Fiscal Package, with a focus on its impact on businesses, investments, and economic relations between the two countries, according to an official statement.

The submission of proposals requires a comprehensive assessment and a review of any measures that impose additional costs, taking into account the economy's capacity to absorb them, the Chamber said.

The CCIA supports policies that bolster purchasing power and public services. Stable demand in the domestic market, an inclusive labor market, and an efficient administration also benefit businesses. These objectives must be balanced with the maintenance of conditions necessary for revenue generation, employment, and investment.

The Chamber welcomes the decision to maintain the corporate income tax rate at 15%, as well as the planned 6% VAT rate for basic food products, as outlined in the fiscal package.

The effectiveness of the latter measure will ultimately depend on whether it is genuinely reflected in final consumer prices. The proposed increases - raising the dividend tax from 8% to 15% and the standard VAT rate from 20% to 21% - carry significant implications. The former affects the net return on distributed capital, while the latter may impact prices or business profit margins. These changes remain subject to the finalization and approval of the relevant legal texts.

The impact will vary depending on the sector, business size, access to credit, and contractual obligations.

Export-oriented businesses, consumer-facing sectors, and operators with long-term investments have different capacities for adjustment. Consequently, the "fiscal neutrality" regarding the public budget - as stated by the Ministry of Finance - does not, in itself, reflect how the resulting benefits and costs are distributed among businesses and households. The underlying assumptions and analyses concerning the net effects on consumption, investment, and employment - distinguishing between the short term and the medium term - should be made available.

Predictability is of particular importance for entities that have hired staff, entered into contracts, or secured financing. Changes implemented within a short timeframe may necessitate the revision of existing plans, while making it difficult to adjust revenues and costs with equal speed. Uncertainty can also lead to greater caution and delays in decisions regarding new investments.

Consideration must also be given to the costs of adapting invoicing, accounting, and contracts, as well as the impact that payment terms and the recovery of tax credits may have on liquidity.

Simplification, consistent guidance, taxpayer assistance, and timely refunds should be accompanied by proportionate obligations and appropriate procedural safeguards. Improving revenue administration and combating tax evasion merit clear recognition - not least as an alternative to increasing the tax burden.