The fiscal package, or in other words, the set of tax changes that the government has proposed to accompany the 2026 draft budget, includes tax liability forgiveness as well as a series of tax refunds, in some cases even their increase.
Fiscal peace will be another innovation of this package, which will forgive old 10-year obligations and fines until 2014, while for other years, there will be conditions for relief.
In this line of relief, the fiscal package also continues for farmers with a direct boost, as the VAT compensation is increased to 10% of the value of sales invoices, to encourage formalization and increase the competitiveness of domestic production. Meanwhile, in the real estate sector, a tax reduction from 15% to 5% has been proposed for revaluation.
Parents will also have the opportunity to benefit from a direct social measure. More specifically, 48 thousand lek will be deducted from personal income tax for each child under 18 years of age.
"When drafting the package, the government has taken into account some sectors, positive encouragement as a subsidy, but also in those parts where it lowers taxes to invaluate or raises them to discourage which do not have a positive impact. As for fiscal peace, we must keep in mind that there is a thin line that separates how regular they are. In general, we must see from the constitutional framework how legal it is that there is high sensitivity and the economy is unintentionally deformed," said Gjergj Tafa, fiscal expert.
On the other hand, several sectors will experience tax increases. Mainly, the technology sector will be removed from the relief scheme. From 5%, the IT profit tax will return to 15%.
Excise duty will also increase for some goods, mainly with an indexation of 1.5% for goods such as beer, oil, and coffee, with the exception of cigarettes, where the progressive increase plan continues.
A measure that is expected to bring additional revenue to the budget. The package also adds an environmental element. The carbon tax increases from 3 lek to 4.5 lek per kilogram.
A number of other changes will affect the tax procedures law. Starting from the Administrative Acts that will be sent with electronic signature, replacing postal services, online entities to publish business data, the reduction of the limit for cash payments, and the obligation to equip with "POS" terminals.
"The reduction in the cash payment rate is a good thing, it reduces cash in circulation. It also orients all businesses to have POS and the package has left room to be completed," the expert says.
The fiscal package is expected to be submitted to the Parliament according to the government, while it is in consultation with interest groups and internationals./ TCH