Businesses demand flat tax - Requests for political parties. From property tax, to VAT and tourism
Albanian businesses are demanding the implementation of a new fiscal system based on the return of the flat tax. The Tirana Chamber of Commerce and Industry, in collaboration with a number of business associations, has made several concrete fiscal proposals to the political forces in the country, with the aim of including them in economic programs.
Nikolin Jaka, President of the Tirana Chamber of Commerce and Industry:
"Application of a new fiscal system with a flat tax of 10% to encourage investments, wage growth and formalization of the economy. This will create more jobs and ease the burden on businesses and citizens. The VAT rate for the agro-processing sector should be 5%-7%. Reinstating the farmers' compensation rate for VAT-Credit with 75% of VAT for the sale of domestic agricultural products by entities that are not subject to VAT. Exemption from VAT for investments, in the import of plants and equipment for photovoltaic, wind, etc. regardless of the value of the investment."
For the tourism sector, it is proposed to introduce mandatory tipping and wage subsidies for off-season employees.
"Application of TIPs (reward) - Based on the experience of many countries around the world, the invoice contains the "TIP" (tip) sector that allows the client to reward service personnel without burdening the entity's turnover. This will help increase interest in working in the service sector. We think that in Albania, incomes up to 1500 Euros should not be taxed. Subsidies on salaries and insurance for seasonal tourism workers - Tourism is a seasonal industry. You cannot have qualified and trained employees with a 3-5 month season on the coast and where almost 70% of employees have to move to another job to have full-time insurance and seniority."
Regarding the construction sector, a reduction in the infrastructure impact tax and the property transfer tax is proposed.
"The infrastructure impact tax, in addition to needing to be reviewed in terms of the tax rate applied, especially in Tirana, where we identify the range of 2-6% as the most appropriate, we propose that its calculation method be also cost-oriented. A law should be drafted for the revaluation of real estate at the rate of 3-5% (3% for residential buildings and 5% for commercial buildings). The real estate transfer tax should be no more than 7%."
Businesses believe that to build a sustainable economy, an approach that supports businesses, creates new employment opportunities, and fosters economic growth is necessary.
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