info@arsfirm.al Kontakti: +355692476387

Draft Law on VAT, Excise Duties & National Taxes

During October 2023, the draft laws “For some additions and amendments to law no. 92/2014, “On value added tax in the Republic of Albania”, as amended; the draft law “For some amendments to law no. 61/2012, “On excise duties in the Republic of Albania”, as amended; the draft law “For some amendments to law no. 9975, dated 28.7.2008, “On national taxes”, as amended; and the draft law “For some additions and amendments to law no. 9920, dated 19.5.2008, “On tax procedures in the Republic of Albania”, as amended” were deposited in the Parliament of the Republic of Albania.

The draft law proposes the exemption from value-added tax for the import of (i) purebred breeding animals (species: goats, sheep, cows, pigs, and poultry) and biological material used for artificial insemination, and (ii) insects (bees and others). The proposal aims to promote the import of these products to increase the number of livestock in our country, develop the beekeeping sector, stimulate organic production, and utilize innovative agricultural methods for the biological control of harmful insects.

The draft law is proposed within the framework of the fiscal package 2024 and envisages indexing excise rates every two years to the extent of the inflation rate declared by INSTAT, but not exceeding 1.5%, with the exception of tobacco and its by-products (for which excise is applied according to a schedule).

The draft law proposes an increase according to a schedule in the carbon tax for coal, as well as the inclusion of some by-products and other forms of coal in the carbon tax. The proposals come within the framework of the Albanian state’s commitments to environmental protection and mitigating climate change. The carbon tax is set at: 1.5 lek per liter for gasoline; 3 lek per liter for diesel; 3 lek per liter for kerosene; 3 lek per liter for heating oil; 3 lek per liter for fuel oil; 3 lek per kilogram for petroleum coke. Meanwhile, for coal, it is proposed to increase according to the following schedule: 3.5 lek per kilogram for the year 2024; 4.5 lek per kilogram for the year 2025; 6 lek per kilogram for the year 2026; 8 lek per kilogram for the year 2027; 10.3 lek per kilogram for the year 2028; 12.8 lek per kilogram for the year 2029; 15.3 lek per kilogram for coal for the year 2030 and beyond.

Draft Law on Tax Procedures