Albania's government has proposed a 2027 tax package that raises standard VAT to 21% and the dividend tax to 15%, while cutting VAT on 54 basic foods to 6%, according to Tirana Times.
According to Tirana Times, Albania's government presented a 2027 fiscal package on October 28. Prime Minister Edi Rama described it as an effort to redistribute the benefits of economic growth. Finance Minister Petrit Malaj called the package broadly revenue-neutral and said it rests on three principles: income redistribution, tax fairness and a more efficient tax system. These are government proposals, and the article does not describe them as adopted. The main proposed changes are as follows. VAT on 54 basic food products would fall from 20% to 6%, while the standard VAT rate would rise from 20% to 21%. VAT on hotel accommodation would go from 6% to 10%, with an exception for agritourism businesses. The dividend tax would increase from 8% to 15%. Corporate income tax would stay at 15%: an earlier draft had suggested 17%, but that proposal was dropped before the formal presentation. The package would also lower the annual turnover threshold for mandatory VAT registration from 10 million lek to 5 million lek, bringing an estimated 17,500 more businesses into the system, including independent professionals. In personal income tax, the upper limit of the 13% salary bracket would rise from 200,000 to 300,000 lek per month. A new 30% rate would apply to monthly salaries above 700,000 lek; the preliminary draft had put it at 32%. The plan also includes a new revenue control bureau at the Finance Ministry, a restructuring of the circulation tax on fuel and vehicles, and a separate charge for foreign vehicles entering Albania. Tirana Times reports that business groups, including the American Chamber of Commerce, and opposition parties have criticized the package. They warn of higher prices, weaker competitiveness and risks to foreign investment. The proposals come amid student-led anti-government protests. The article also notes that the lower VAT on food will not necessarily lead to equivalent retail price cuts. Final terms may change, so check the current rules before making decisions.