Albania to lower taxes for processing industry in 2017

The tax rate for the domestic processing industry in Albania will witness significant reduction in 2017, sources from the Albanian government confirmed Monday.

According to Albanian executive, the lowering of taxes would help the sector to expand as well as boost its contribution to the economy and employment.

Therefore, the tax on metallic minerals that are processed in Albania will be halved from six percent to three percent, the sources said.

Tax cut will be applied even in the footwear and manufacturing industry.

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.

The government is supporting this sector given that it has proven to be a fast-growing sector during the recent years, the same sources said.

Another tax that will be reduced in the upcoming year is the excise on processed tobacco that is cultivated in Albania.

But, 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 Jan. 1, the autogas excise tax will be 10 leks to 13 leks per liter. Meanwhile, it will increase the number of vehicles that pay the luxury tax up to 45 U.S. dollars 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 7 million leks.

Meantime, according to the Albanian economy experts, this package is expected to have a neutral effect and not increase the tax burden for citizens and businesses. (1 U.S. dollar = 126.4 lek) Endit