Tax on personal income producing lower results than last year
Changes to the way on the taxing of personal income is having a negative effect on the state budget.
Revenues from this item, only for the 7-month period, are estimated at ALL 18.5 billion, while in the same period of the previous year they were ALL 19 billion.
It seems that government’s new tax policy with regard to personal income, where progressive taxation took effect, is not producing results.
However, according to the government policy, with the imposition of this taxation method, less paid Albanians will pay less taxes, while those who receive more will have higher taxes.
But this policy seems to have increased evasion, making wage declarations unrealistic, as the increase in the number of insured persons by state institutions seems to have had no effect as most of the statements are with the minimum wage.
According to the law, all those who have a salary up to ALL 90 thousand per month pay less taxes in the state than until December 31, 2013.
Taxed personal income can be categorized into subgroups: those on wage income in the public sector and the private sector; from banking interests; from dividends; from the sale of immovable property and other sources of income.
Income from taxes on salaries occupy the main share, at about 60%, as far as the structure of the personal income tax values is concerned.
SCAN
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