Foreign investments in the current year in Albania have gone
done by 50%. Official data indicate that “there’s a fall of almost 50% in net
value of foreign investments in Albania in the third quarter of 2014 compared
to 2013â€.
Confederation of Industries of Albania (Konfindustria)
expresses its concern about this drastic fall. Gjergj Buxhuku, General
Administrator of Konfindustria, believes that the 50% reduction of foreign
investments in the Albanian economy is a result of the fiscal package that has
entered in force at the start of 2014.
“The most tangible negative measure in the 2014 tax package
for foreign investments is the increase of tax on profit for the business by
50%, taking it to a level of 15%â€, says Mr. Buxhuku.
According to him, this situation comes in circumstances when
neighbors are attracting investments thanks to the cautious taxation which has
a falling tendency in order to stimulate foreign business to invest in these
countries. “In all other countries of the region, which compete with Albania to
attract foreign investments, tax on profit is between 9.5% to 10%â€, says Mr.
Buxhuku.
Meanwhile, the 100% rising progressive tax (7.5%-15%) of the
tax in profit for businesses with annual turnover over and below 8 million ALL,
has caused a worrying growth of tax evasion.
Konfindustria considers this situation as problematic and
bearing long term consequences. Therefore, it has officially demanded to the
government and political actors to bring back flat tax in the 2015 tax package.
“We will demand the reintroduction of the flat tax at a
level of 9% to 9.5% for all business sectors that work in circumstances of free
competition and do not benefit from the government privileges of closed markets
and monopoly marketsâ€.
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