TIRANA, November 4 /ATSH/ – Minister of Finance Petrit Malaj stated today that about 54 products will become more affordable for Albanian consumers starting in January 2027, as a direct result of the reduction in the Value Added Tax (VAT) on food items from 20% to 6%.
While appearing before the Committee on Economy, Employment and Finance, Malaj addressed questions from members of the Parliament regarding the fiscal package and assured that there would be enhanced monitoring of food product prices.
He emphasized that technology is also being utilized to track prices—from the producer and importer through to the retail market—to ensure that the VAT reduction is properly reflected in the final prices.
“The increase in the standard VAT rate is intended to offset the VAT reduction we are implementing for essential food items, though it does not cover the full amount. Raising the standard VAT to 21% will generate 10.6 billion lekë for the budget, while the reduction in VAT on food products represents a loss of 12.8 billion lekë,” Malaj said.
Further on, Malaj noted that the government is preparing amendments to the law on local taxes to introduce an additional tax on vacant apartments in Tirana. The measure is expected to affect approximately 40,000 properties and aims to curb informality in the rental market.
“We will also introduce a tax on vacant apartments within the law on local taxes; owners will be required to either declare the property as being used for short-term rentals or declare it as vacant and pay the property tax. We are currently working on several mechanisms,” said Malaj.
To identify undeclared income, the Ministry of Finance is also working to obtain data from platforms such as Airbnb and Booking, as well as to secure the automatic receipt of information from the banks.
“We will request automatic information from the banks regarding income received from these platforms—and beyond, including from Instagram, Facebook, etc. Once we receive this data from the banks, we will be able to cross-reference the income earned by these individuals,” Malaj stated.
While the Democratic Party (DP) raised concerns that sports betting remains informal and fails to generate revenue for the state budget, Malaj noted that the launch of online betting will await a further revision of the law, intended to strengthen oversight and prevent social issues. /m.m/r.e/a.f/p.s./
