Albania’s government is considering new tax privileges for its defence industry, a move coinciding with an investigation into alleged arms trafficking involving the state-owned company KAYO. The proposed fiscal concessions would specifically benefit private partners associated with KAYO, fueling concerns about potential state capture. This initiative has sparked debate over whether the government is genuinely fostering a strategic sector or improperly leveraging public power for private gain. Reporting by BIRN highlights the timing of these tax breaks as particularly suspect, given the ongoing scrutiny of KAYO’s activities. Critics argue the measures could shield favoured companies from accountability and further entrench their influence. The situation raises significant questions about transparency and governance within Albania’s defence sector. This development warrants further investigation to ensure public funds are used responsibly and national security interests are protected.