Fasons, exchange rate compensation scheme - Proposals: Increase in depreciation coefficient for machinery and dedicated funds
The clothing and footwear manufacturing sector continues to suffer significant monetary and labor losses due to the exchange rate. In 2025 alone, the sector is expected to lose nearly 12,000 jobs.
For this reason, in the hearing held in the Economy Committee, emergency measures are required.
Edvin Prençe, Chairman of Pro Eksport Albania: "Increase the depreciation coefficient from 20 percent to 40% for production machinery. This is not a tax cut, but changes the rate at which investment expenses are recognized for fiscal purposes. It serves to increase productivity and make the necessary investments to be more competitive. The policy should provide AIDA with funds dedicated to the tailoring sector."
One of the main measures is also related to an exchange rate compensation mechanism.
Donika Mici, Vice President of Pro-Export Albania: " Today we are at a critical moment. We have lost jobs even in 12024. It is not easy for this sector with 65 thousand employees to disappear. Colossal losses in euros that we cannot bill to the client because it is impossible. We must focus on a transitory fiscal compensatory mechanism. It is a protective tool that will save this sector without attacking the Albanian economy. It must be applicable on realized and verified exports in order to stabilize the operational margin, preserve jobs and protect subcontractors. The measure is a fiscal compensation measure on exports and does not constitute an intervention in the exchange rate, but covers the real difference in the exchange rate. We propose to create an exchange rate of 101-105 lek determined on a multi-year basis of the calculated exchange rate, before the structural strengthening of the lek. The difference between the market rate and this level should be compensated on realized exports of registered in the customs system that are very easily verifiable. The compensation is calculated on the registered export declarations”.
The sector employs over 65,000 people and generates over 1 billion euros in export revenue annually.
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