TIRANA, October 30 /ATSH/ – Minister of Finance Petrit Malaj presented today the amendments to the 2027 fiscal package to the Parliamentary Committee on Economy.
Malaj emphasized that, “The underlying principle of this fiscal package is the redistribution of revenue—ensuring protection for the most vulnerable groups while supporting the middle class.”
Addressing concerns that the fiscal package—which generates more revenue for the state budget—amounts to a tax hike, Malaj clarified that, “There is no tax increase, but rather a redistribution of the tax burden.”
“The increase in the dividend tax and the funds generated by this change will be reallocated. It will serve as additional income for the middle class,” the minister explained. The country’s finance chief stated that, “The VAT policy we are pursuing—specifically, the reduction of VAT on essential products from 20% to 6%—entails a greater budgetary cost than the additional revenue generated by increasing the VAT rate from 20% to 21%.”
Furthermore, the removal of the circulation tax on fuel—shifting it instead to motor vehicles—also creates a deficit in the state budget, which is likewise covered through these revenue reallocations. /p.s./
