TIRANA, November 19 – Prime Minister Edi Rama presented the 2026 draft budget in Parliament today. He said the plan marks the first time the government provides sustainable support to pensioners. In addition, it commits 1.7 billion euros to medium-term financial measures.

Rama said the budget consolidates social and health growth. He added that citizens will benefit from improved living standards. Meanwhile, he addressed questions about pension increases. He stated, “These measures are verifiable. Everyone in the chamber can track them in the coming months and years”.

He noted that the budget allocates 257 billion Lekë to social protection. This figure represents an 11.6 billion Lekë increase, equivalent to 116 million euros. As a result, the measures aim to reduce poverty and unemployment.

Rama emphasized continued support for economic aid recipients. He also highlighted measures for people with disabilities and families receiving the baby bonus. At the same time, he confirmed that small businesses will not pay income tax until 2029.

The Prime Minister explained that companies with annual turnover up to 100,000 euros will not pay income tax or value-added tax. In contrast, businesses with turnover up to 140,000 euros will pay only income tax. He added that Albania ranks highest in supporting small businesses in the region. For comparison, North Macedonia sets the VAT threshold at 16,000 euros.

Rama announced that the minimum wage will rise to 500 euros in January. He added that the government aims to reach 700 euros by the end of this mandate.

Meanwhile, he introduced a fiscal amnesty to help businesses settle old tax obligations. He outlined four types of debt relief. First, the government will cancel all unpaid taxes older than 10 years. Second, it will cancel 50% of debts from 5–10 years if businesses pay the remainder immediately. Third, it will cancel 25% of debts from 5–10 years if businesses pay in installments within the year. Fourth, the government will cancel fines and interest for debts 1–5 years old if the principal is paid in full.

He explained that businesses can correct previous declarations. Voluntary adjustments will face only a 5% profit tax on the difference. In addition, Rama said companies can increase taxable profits by 18% compared with last year. Any excess will be taxed at 5%.

Rama concluded that these measures create a transparent and mutually beneficial agreement. He added that the plan strengthens the economy and reduces administrative burdens for businesses.

/a.p./