Fiscal Package 2026 Brings No Tax Increases and Expands Support for Families, Farmers, and Businesses

Today, the Minister of Finance, Petrit Malaj, presented the 2026 Fiscal Package to the Parliamentary Committee on Legal Affairs and Public Administration. He emphasized that the package does not include tax increases, but rather aims to simplify the fiscal system, boost productivity, and provide sustainable support for citizens and businesses. Malaj described the package as an economic development instrument that establishes stronger foundations for modern administration and a transparent tax system.
A key innovation for 2026 is a 48,000 ALL deduction for each child under 18. This deduction is applied through the parents’ Annual Individual Income Declaration (DIVA) and is intended to significantly reduce the tax burden on families. This policy is expected to return around 1.5 billion ALL in additional disposable income to households.
Another important measure concerns agriculture. The government has decided to compensate for 10% of the VAT, providing 1.5 billion ALL in support for farmers in 2026. This fund is expected to increase to over 3 billion ALL in 2027. Minister Malaj said this policy will provide direct and fair support for agricultural and livestock producers, encouraging them to document all supplies and transactions.
A central element of the package is the “Fiscal Peace” initiative, which aims to resolve outstanding tax and customs obligations through two related draft laws. The “Fiscal Peace Agreement,” which will be implemented from 2026 to 2028, allows entities to settle their liabilities by applying reduced profit tax rates to their declared income. The draft law on the forgiveness of tax and customs debts provides differentiated schemes for obligations between 0 and 10 years old, explicitly excluding entities under criminal investigation, and full cancellation of liabilities older than 10 years.
To limit the excessive use of cash and promote electronic payments, the package establishes caps of 100,000 ALL for business-to-business cash transactions and 500,000 ALL for business-to-consumer cash payments. Additionally, all businesses operating in the tourism and transportation sectors must implement alternative electronic payment methods by May 30, 2026, and all other entities must do so by December 31, 2026.
The 2026 Fiscal Package includes regulations for online trade and the revaluation of property outside Tirana. It also provides incentives for scientific research, sports, and culture, including support for foreign artists working in Albania. According to Minister Malaj, these measures aim to create a fairer, simpler, and more reliable system that supports economic growth and brings Albania closer to European standards.
Minister Malaj concluded by stressing that the 2026 Fiscal Package does not introduce tax increases, but rather establishes new foundations for a more efficient and accountable fiscal administration that aligns more closely with European standards and the needs of citizens and businesses.