AmCham supports the reform against informality and gives suggestions

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On Friday, October 9^th, the American Chamber of Commerce in Albania published a press release regarding the reform on the informality, undertaken on September 1^st, 2015 by the government. According to the statement, the American Chamber of Commerce supports and encourages the government in the efforts to decrease the informality in the Albanian markets, and highlights that informality has been discussed as a serious issue by AmCham members during their meetings with the Minister of Finances Shkelqim Cani, since in 2013. This issue has also been ranked as the number one problem in the AmCham Business Index of 2013 and 2014.

Despite its positive effects in the market in the long term, the American investors in Albania are of the opinion that this reform is showing its negative effects regarding the collections of taxes, and this has come as a result of the approval of the Law on Tax Procedures without discussing it with business representatives. The AmCham’s statement says: “We think this plan of measures must have been consulted previously with business representatives in order to receive an approval by businesses, as well. We are concerned this plan of measures will transform into a punishment for Albanian businesses which currently are facing uncertainties regarding the reform and new initiatives that cannot succeed in such business climate.”

According to AmCham, these punitive measures may have an excessive punitive effect for businesses which may lead to bankruptcy and failure of them in a short time. The fines and penalties on behalf of the fight against the informality must be in correlation to the measure of a business.

News source/photo credits: ATA