According to the recently published Doing Business Report 2018 of the World Bank, Albania is far behind other countries in the Western Balkans zone in terms of facilitating businesses and foreign investments.
Of the 190 countries surveyed, Macedonia is ranked 11th, Kosovo 40th, Montenegro 42nd, and Serbia 43rd, with Albania and Bosnia far behind at places 65 and 86.
In the summer, the Western Balkan states agreed to work toward the creation of a Regional Economic Area, which
will enable unobstructed flow of goods, services, capital and highly skilled labour, making the region more attractive for investment and commerce, accelerating convergence with the EU and bringing prosperity to all its citizens.
It is obvious that the strongest and most competitive economies will profit most from this free trade scheme, and this currently does not include Albania.
In a response to the publication of the report, opposition leader Lulzim Basha declared:
Albania has lost 7 places in the evaluation of the World Bank’s Doing Business 2018 Report. The main factor of this worsening is the increase in taxes and duties, causing a drop of 28 places. The report declares that 37.3% of profit goes to taxes and contributions, while the government is endlessly dragging along the reimbursement of VAT. […]
Investors who want to invest in the Balkans, see Albania as the last choice. The neighboring countries are the ones more apt at attracting foreign investors.
The fiscal package for 2018 recently proposed by the Rama government does not appear to remedy this situation. According to an analysis of Gjergj Erebara in Reporter, the legal changes proposed by the government would concentrate considerable power with the Prime Ministry, and give tax breaks and accommodations to only a handful of wealthy oligarchs close to the government, while there appears to be no substantial research underpinning any of the propositions.
