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Berisha pledges no tax above 12.5% if Democrats return to power

TIRANA, Nov. 1 /ATA/ – Democratic Party leader Sali Berisha said on Sunday that no tax would exceed 12.5% if his main opposition party returned to power, as he criticised the government’s proposed 2027 fiscal package, saying it would place a heavier burden on low-income households, small businesses and the middle class.

Speaking during an online exchange with citizens, Berisha accused the government of raising taxes without prior notice or public consultation.

He said changes to the value-added tax (VAT) regime would push up prices for a significant range of goods, further straining household budgets, particularly among lower-income families.

“The package is a serious blow to three groups: the poorest, small businesses and the middle class. It is particularly damaging to the poorest because, although it appears to promise lower prices for basic food items, bringing all shops into the VAT system will in fact force them to raise prices by 6%, meaning Albanians will pay 6% more than they do now. This is a highly irresponsible move,” Berisha said.

He argued that extending VAT coverage to more shops would force them to increase prices, despite a planned VAT reduction on 52 products.

Berisha said around 18,000 businesses risked going bankrupt as a result of the changes to the VAT threshold.

The opposition leader also said that applying a 21% VAT rate to certain services would increase costs for consumers and make it harder for professionals to operate.

Doubling the dividend tax would have serious consequences for foreign investment, Berisha said, arguing that investors would favour countries with no dividend tax or a rate of 8%, the level previously applied in Albania.

“Raising it to 15% is effectively a message to foreign investors: do not come to Albania,” he said.

Berisha also outlined several fiscal measures his party would introduce if it came to power, pledging to cap all taxes at 12.5%, including VAT.

“I guarantee every Albanian citizen that, under a Democratic Party government, no tax in the Republic of Albania will exceed 12.5%, including VAT. Several taxes will be below that level, but none will be above it. This also applies to social security contributions paid by employers and employees. No tax will exceed that threshold. Second, liberal professions will be fully exempt from taxation or have their tax rate reduced to 12.5%,” Berisha said.

Another pledge concerned fuel prices. Berisha said fuel in Albania would no longer be sold at prices higher than those in neighbouring countries, citing Kosovo and North Macedonia as reference points.

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