Regional investments in Albania/ Muhametaj: Companies participating in fairs should be exempted from VAT
On the first day of the opening of the 30th edition of the Tirana International Fair, the Regional Cooperation Table was held, where the focus of the discussions was the easing of financial barriers for trade between the countries of the Balkans and beyond. In this direction, the vice-president of Klik Expo Group, Luel Muhametaj, also spoke in his opening speech.
"Today, I want to discuss both the impact of the fair on regional cooperation, as well as an essential step that we should consider to further stimulate foreign partnerships in Albania. An important measure would be to consider providing tax incentives to foreign companies participating in fairs. Currently, these companies face the standard VAT of 20%, which can be a significant cost for those new to the market. By exempting foreign companies from VAT, or at least reducing this tax for the duration of the event, we can make Albania a more attractive destination for international exhibitors and investors. Imagine the impact of such an incentive: foreign companies, especially small and medium-sized enterprises that might otherwise be reluctant due to costs, would have greater motivation to engage in our market. All this would send a clear message that Albania is committed to welcoming global partnerships and fostering an environment where cooperation is encouraged, not burdened by additional financial barriers. This exemption from VAT would not only increase foreign participation in fairs, but would also contribute to our long-term economic development,'' said Mr. Muhametaj.
Grant Van Cleve as a representative of the American Chamber of Commerce, gave a clear message while addressing the countries of the Western Balkans.
"You are in a process of integration, not only Albania, but also many countries of the region with the European Union. This is also your main goal for future trade and development. But I don't think America is out of this scenario. I say this because it is natural: the largest economy in the world, the superpower, geopolitically, we are obviously a factor. But I also know that, even though we are the largest economy in the world, the trade relations between our country and Albania are not among the closest. Often, our economic influence is lower than our political influence. I am also aware that some countries in the region have a lower rating for America than Albania and Kosovo. I admit that sometimes we are undervalued, and I also know that our economic performance here could be better. However, just a few hours ago, the president of Serbia, Vucic, published a message where he said that cooperation with American companies does not only bring capital, but also technology transfer and valuable experience for modernization and project management. We have experience in infrastructure and have carried out numerous engineering and construction projects, starting with the Albania-Kosovo railway. As we expanded further, we realized that a regional solution could be made. This regional approach can help local solutions better. It is not simply to connect Kosovo, but to complete the connection to Nis, Serbia, and possibly to Podgorica, Montenegro. If we create a railway line that goes from Podgorica to Mostar, Bosnia, we can contribute to the competitiveness and economic development of the region, as well as create a sustainable path to prosperity,'' Grant Van Cleve emphasized in his speech.
Part of the regional table was also Refik Xhemaili, director of the Agency for Foreign Investment and Export Promotion of the Republic of North Macedonia, who, in the same line as Mr. Muhametaj, said that more tax facilities are needed in trade relations between the countries of the Balkans.
"The Balkans with its geographical position as a bridge between Europe, Asia and the Middle East offers opportunities for businesses that want to enter European markets and export to different regions. Our position offers increased competitiveness and access to over 650 million consumers in a dynamic market and qualitative growth of trade volume by about 9% per year. During the last 5 years, the Balkan markets are becoming more and more attractive. Addressing CEFTA brings significant benefits to the Balkan countries by enabling easier access to regional markets, lowering tariffs and easing trade barriers. CEFTA eases the path to EU integration by aligning with European standards and regulations as well as stimulating institutional reforms that improve the environment for business and investment. In addition, it stimulates investment in infrastructure by facilitating cross-border trade. This partnership creates opportunities for economic growth and opens up new markets, but there are still challenges that limit cross-border trade, such as inconsistencies in regulations, different customs procedures and significantly higher logistics costs, which are 2 to 3 times higher. that the measure in the European Union.''
Even Fiona Beqiri, on behalf of the Albanian Investment Development Agency, emphasized that regional cooperation is a good opportunity for economic growth and development, where Albania is committed to building connecting bridges throughout the Balkans, utilizing unique resources, strategic positioning and skilled workforce to contribute meaningfully to a strong and united regional economy. According to her, AIDA is engaged in this process to attract foreign investments, support SMEs and promote exports.
"Every business that expands across borders creates jobs, drives innovation and enhances the skills of our people. However, to continue progress, we must address the challenges that remain, logistics, regulatory barriers and standardization are some of the critical areas for further improvement. I hope that our discussions today will shed light on practical solutions to these issues," she further emphasized, while adding that Albania's participation in the Central European Free Trade Agreement (CEFTA) is very beneficial for cross-border traders by reducing barriers trade within the region."
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