Government Approves 2018 Fiscal Package
Albanian Daily News
Published October 29, 2017
The Council of Ministers approved the 2018 fiscal package. Two are the most important points of this package: first, the tax on buildings which will radically change the way how this tax has been calculated so far; second, the initiative of the government to give fiscal facilitations for four star or five star hotels with a special status.
The government has decided that the level of the tax on the buildings which is applied as a percentage of the base of the tax is currently 0.05 percent for the building where the taxpayer has a permanent residence or where he usually lives and 0.15 percent for a building which is used and exploited for an economic activity.
In the last moments, the government increased the number of those who will pay this tax, adding even those builders who have not respected the time-limits for the permit they have received.
The hotels with four or five stars will not pay the profit tax for a ten-year period, if they manage to get the special status. This is one of the greatest fiscal incentives that the government has decided to give to future investors in tourism. Tourism will be without taxes, but only for those who have not arrived here yet.
“The exclusion from the profit tax will be applied for a ten-year period for those structures who will get authorization from the Council of Ministers until December of 2024. The effects of the exclusion will start at the moment of the start of the economic activity of the accommodating structure, but not later than three years from taking the special status. This has been done on purpose to give incentives in the moment of the start of economic activity, when this activity will make a profit,” the draft-law said.
The decrease in the number of ministries under the second mandate of governance by Prime Minister Rama has brought huge changes to the way the funds are distributed according to next year’s budget.
The Ministry of Finance and Economy will receive the largest allocations of funds, with a budget prediction of 60.8 billion lek. Proceeding down the list ranking ministries by largest allocation of funds, the Ministry of Health, the Ministry of Infrastructure and the Ministry of Energy follow consecutively. The Ministry of Justice will receive an increase in funds of 2 billion lek, the Ministry of Agriculture an increase of 83 million lek and the Ministry of Interior 1 billion lek.
Changes in the structure of Prime Minister Rama’s second mandate government have brought a different concentration of funds in the budget draft for the next year.
The Ministry of Finance has merged with the Ministry of Economy and it now consists of some important directorates, such as the Institute of Social Security and also tertiary education.
Regardless of the merger, the fund is still multiple times larger in comparison to that of the year 2017, when the fund for both ministries combined equaled 10 billion lek.
The second largest allocation of funds for the year 2018 is the Ministry of Health and Social Protection, with a fund of over 60 billion lek. The government has paid attention also to the fund for new investments for next year. Thus the Ministry of Infrastructure and Energy has received a fund of 47.8 billion lek. A sensitive issue, The Council of Ministers has a predicted decrease in the budget from 3.86 billion lek to only 960 million lek. However, it is explained that this is due to the change of dependent institutions.




Politics
MORE
Economy
MORE
Social
MORE
Current Events
MORE
Op-Ed
MORE
World News
MORE