The proposal to extend the deadline for zero-rated income tax for foreign 4-5 star hotels in Albania has been accompanied by debates in the Economy Committee. Socialist MP Blendi Klosi, through a draft law submitted to the Assembly, requests the extension of the tax effect until 2026, with the aim of developing tourism in Albania.
"A 2-year extension of the deadline until 2026 is required, as well as leaving a space of 5 years from obtaining the status for the start of investments, because such projects with rigorous brands take a considerable period of time," said Socialist MP Blendi Klosi.
"The table shows that I have 10 projects with a total taxable profit of 518 million lek, employment of 818 people. VAT paid 77 million lek. They operate with a reduced VAT rate of 6% for each service provision within accommodation structures. These are exempt from the law on building taxes. Again, they are also exempt from the infrastructure impact tax", declared Arjana Dyrshimi, Director of Tax Policies.
Democratic MPs consider the undertaking of such an initiative before May 11 to be a clientelistic law, but also in violation of the electoral code.
"When the budget was passed in December, it was said that there would be no change in taxes, we have a medium-term strategy for revenues and after June we will review this strategy. While the budget was being approved, Mr. Klos' proposal came and it is a violation of the electoral code. Temporary laws are turning into permanent laws. Customary laws are related to electoral purposes", said Jorida Tabaku.
The Minister of Finance lied to us and said there would be no more exemptions, we would remove them little by little and after a month you would come.
"The custom law is related to electoral purposes."
"When I see agriculture collapsing and there are no more people in the villages, and you go and finance these bigwigs ," emphasized Democratic MP Edmond Spaho.
"It does not benefit a single voice, but everyone involved in business, from the farmers that Mr. Spaho is concerned about to tourism," declared Socialist MP Blendi Klosi.
There were also objections to the extension of the zero-rated tax effect from Socialist MP Erion Braçe, who requested that fiscal exemptions not become permanent.
"The declared profit, what was done afterwards, was reinvested or accumulated as investors' wealth or invested abroad. I am in favor of the policy of building hotels in Albania but against the policy of selling them. The money that is made in this country should stay here and any fiscal exemption should be temporary ," said Braçe.
The exemption of these businesses from profit tax was approved in November 2017, and extended its effects until December 2024. The extension of the deadline was approved by the responsible Committee on Economy and is expected to be voted on in other committees. (A2 Televizion)
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