Lower Tax Rates on Processing Industry Coming in 2017

Lower Tax Rates on Processing Industry Coming in 2017

TIRANA, November 7

The tax rate for the domestic processing industry in Albania will be reduced in 2017. According to the government, this will help the sector to expand as well as the benefits that it provides for the economy and employment. Thus the tax on metallic minerals that are processed in Albania will be halved from six percent to three percent.
Even the footwear and manufacturing industry will benefit a tax reduction. Currently, the customs duty on the raw materials used by this industry ranges from 2 to 15 percent of the total value. But the new package defines a zero tax for these products in order to encourage the domestic textile industry, which grew at its fastest pace during the recent years.
The third tax that will be reduced is the excise on processed tobacco that is cultivated in Albania
These are the taxes that will be reduced. On the other hand, there will be an increase for some products. The first of them is autogas, which so far has been excluded from excise tax schemes. As of January 1, the autogas excise tax will be Lek ten to 13 per litre. Meanwhile, it will increase the number of vehicles that pay the luxury tax up to Euro 500 per year.
According to the current law, this tax is paid for vehicles that have an engine with a capacity of over 3,000 cubic cc and a value over Lek seven million. The new package defines that the tax will be paid for all the vehicles that have a value over Lek five million.
The fiscal package is expected to have a neutral effect and to not increase the tax burden for citizens and businesses. According to the government, it aims at stimulating domestic production and it also prevents evasion.

News Source/ Photo Credit: TCh

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