Addressing a meeting with young entrepreneurs in the coastal town of Saranda, the Premier said that after consultations with local and international experts, the government has proposed owners of hotels and guest houses to avoid inspections by prepaying 65% of the tax liabilities during the May-September peak tourist season, and 30% of taxes during the winter season, providing businesses the opportunity to keep their staff employed.

“We should look one another in the eye and acknowledge that you underreport the number of your guests,” PM Rama said, adding “there are no empty rooms in Ksamil or Saranda in July.”

The Premier also underlined that the government has cut the VAT rate on tourism to support sector’s development.

“Albania applies the lowest VAT rate in the region and in the Mediterranean. VAT rate is lower than in Montenegro, Croatia or Greece,” he added.

PM Rama emphasised the need to formalize tourism sector, saying that the government is giving tourism businesses the choice to pay taxes in advance so that they can avoid inspections and audits during the summer tourist season.

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