Profit tax in decline as 10-month period reports ALL 4.2bln less than in 2013

Changes in the taxation system over the last few years by the government have had some negative effects on the state budget revenues.

This is especially true following the increase in the tax on corporate income, especially now that corporates have reported a decline in their revenues.

The official data of the Ministry of Finance show that income from the profit tax for the 10 month period was realized at the value of ALL 25.3 billion.

But in 2013 when this tax was 10 percent, budget revenues were estimated at ALL 29.5 billion.

Meanwhile, referring to the data of the Ministry of Finance for the last 5 years it results that the biggest decline was recorded in 2014, a period that reported the lowest value at ALL 17.6 billion, while in 2015 the amount was at ALL 19.7 billion, while in 2016 the amount reached ALL 23.9 billion.

Increasing the tax burden seems not to have brought stability to the budget, but also to the macroeconomic stability of the country, as Albania is a country with hidden fiscal revenue at roughly 40% of the Gross Domestic Product.

For this, the government undertook the action against informality, which was implemented in several phases and at different levels of business.

In this respect, the government approved a package of facilitated procedures for business.

While there is also a kind of “amnesty” for unpaid obligations that the companies owe to the tax authorities.

SCAN

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