Denada Jushi
Tirana has become the heart of our country's economy. In recent years, development has been in leaps and bounds, providing opportunities for many businesses to flourish, grow and develop. The large population concentration, the increase in construction and tourism have created conditions for entrepreneurship and investment.
But of course, along with development, challenges also arise. Small and medium-sized businesses are the ones that often face unforeseen problems.
Local government is one of the links that has the duty to enable or create an appropriate and encouraging atmosphere for businesses, which are the main contributors to taxes and duties through employment and income generated in these enterprises.
But what happens when the local government decides to penalize businesses that are regular in their payments and tolerate those who abuse their obligations?
2025, more taxes for small businesses
For 2025, the Municipality of Tirana decided to apply an increase in local taxes and fees through a VKB with no. 38, dated 28.03.2024. But in addition to increasing taxes, this institution has not been enough only for 2025, but has caused chaos, giving force to this increase also for the past years, namely 2024 or 2023, by imposing interest and fines on businesses that have paid every obligation on time.
But how did this happen?
The decision had retroactive effect, because this tax is prepaid within March, while many businesses have paid this tax the following calendar year. So, if they paid 2023 in 2024, they were penalized with interest for a higher tax, which they were not aware of because it was not entered into the system, and this is unfair interest, explains journalist Ola Xama.
Another problem is that businesses have not been notified of the tax change issue, violating not only the law on public consultation, not only good governance practices and standards, but also penalizing them.
Cleaning fee, the specific case of these penalties
Florjan Gjoka is a lawyer and fiscal jurist. He says he has come across a number of cases of businesses that have been unfairly faced with fines and late payment interest, with specific cases involving the cleaning tax.
We assume that the announcement of VKB No. 35, dated 28.03.2024, was made on the same day as its approval (dt. 28/03/2024). 10 days after the announcement is dt. 08/04/2024, so this VKB could not enter into force before 08/04/2024, and absolutely cannot have retroactive financial effects for the period before 08/04/2024.
But even for the year 2024 (from 08/04/2024 – 31/12/2024) the change in the cleaning fee should not be implemented, since the cleaning fee is on an annual basis and not on a monthly basis. In order for it to be implemented for the year 2024, the change in the cleaning fee should have been approved before 01/01/2024.
So, since VKB No. 35, dated 28.03.2024, turns out to have been approved on 28/03/2024, it can only be applied for the following year, i.e. starting from 01/01/2025.
A small business told Sinjalizo that no one had notified them of these changes, neither through e-Albania nor through inspectors. The only time they were made aware was when they had to pay and found out that they had been fined even though they had paid every obligation punctually.
We face a shortage of workers, fluctuations in turnover, we work 10 hours a day together with my husband, and when we see how we are fined for being very regular, we feel demotivated, and I think that maybe those who work illegally are better off.
Judicial ordeal, another burden for business
Businesses facing these fines can appeal to the Appeals Commission at the Tirana Municipality, but Ola Xama explains that this commission has not functioned for years and was only constituted in 2024.
Sinjalizo contacted the Municipality of Tirana to find out if this commission is functioning or if the Municipality of Tirana has consulted or notified businesses in the capital about these changes, but so far the Municipality of Tirana has not responded.
The other way is the Court, but the costs of the court are greater than paying the fines, which range from 5 to 20 new lek. But Attorney Gjoka says that in addition to the long wait in court for them to be considered, the Court in most cases does not consider the lawsuits unless the business has filed a complaint with the Municipality of Tirana, in a commission that is not yet known to be functional.
So, businesses enter a spiral with no way out if they decide to demand their rights.
The wrong spirit and the damage it does to business
The European Union, which Albania aspires to join, has operated over the years with forms of incentives for businesses. Among the countries that are supportive of businesses that open or want to grow are cases such as Germany or Switzerland.
Mirjeta F. recounts how the German state helped her in the first 6 months when she decided to open a restaurant serving breakfast and lunch.
"I received consultancy from the German state for everything I needed in the first months. Apart from that, in the first months no inspectors showed up, because their primary goal was for me to function in my enterprise."
As for Albania, Artan Gjergji, an expert in economic issues, says that the financial burden added to business makes it less efficient, negatively affecting the fragile budgets of small businesses.
"We must understand that fiscal policies, both at the central and local levels, are public actions that have a direct impact on the lives of citizens and taxpayers. As such, before they are undertaken, detailed studies of their impact are carried out."
In a city that claims to be a development center, a system of penalties without warning and support only stifle the spirit of entrepreneurship and destroys citizens' trust in institutions. If we really want to get closer to the EU, we should follow their examples in supporting business and not punish them without warning.
