Analysis 08 Nov 17

Resistance Grows in Albania to Rama’s Tax Reforms

Controversial reforms designed to curb the grey economy by forcing small firms to pay VAT, among other things, are coming under increasingly hostile scrutiny.

Gjergj Erebara
Full moon is captured above Plaza Hotel in Tirana, Albania on 14 November 2016. The Government of Albania had proposed many tax cuts for luxury hotels and adding more taxes on small shops. Photo: Gent Shkullaku/LSA

Albania’s parliament has started discussing [link in Albanian] controversial tax reforms, in a debate that has quickly expanded to include businessmen, media, unions and often hostile critics.

The IMF and many local experts advise against the planned changes, arguing that cuts in VAT on big businesses - and imposing VAT on smaller ones - will greatly complicate the work of the tax administration, possibly for little benefit.

Despite the flak, Edi Rama’s Socialist-led government has moved on with its plan, sending it to parliament.

The changes include cutting VAT from 20 to 6 per cent for four and five-star hotels and their business operations.

Subscribe to Balkan Insight Premium to read the full article.

Please login to your account below if you are already a Premium Subscriber.

Buy Premium Subscription

Our Premium Service gives you full access to all content published on, including analyses, investigations, comments, interviews and more. Choose your subscription today and get unparalleled in-depth coverage of the Western Balkans.

Buy Premium Subscription

If you have trouble logging in or any other questions regarding you account, please contact us

Talk about it!

blog comments powered by Disqus

Premium Selection

23 Feb 18

Zaev: Macedonia ‘May Wrap up Name Dispute by March’

Expressing a wish to put a speedy end to the ‘name’ dispute with Greece, possibly by spring, Macedonian Prime Minister Zoran Zaev tells BIRN that he is satisfied with his country’s general direction.

23 Feb 18

Bosnians Query Goals of New Turkish Lobby Group

The launch in Bosnia of a new pro-Turkish organization, the UEBD, is seen as another sign of President Erdogan’s intention to strengthen his influence in the Balkans.

19 Feb 18

Splits Wreak Havoc With Bosniak’s Main Party