How much do municipalities benefit from the new reference prices? - Incomes in Tirana increased by 49% compared to 2023
One of the most important taxes in local government revenues is that on real estate, where due to the unchanged reference prices in 60 municipalities in the country, except Tirana, it has caused the units to collect below potential.
Referring to the detailed report of Local Finances for the 9th month of 2024, 61 municipalities have collected their own income in the amount of 33.6 billion ALL, or 49% more compared to the same period in 2023 (22.6 billion ALL).
The municipality of Tirana has collected its own income in the amount of 19.6 billion lek, or 67% more than the 9th month of 2023 (11.7 billion lek). According to the report, for the Municipality of Tirana, the increase from taxes on real estate results by +49% (only the building tax +60%), cleaning fees/waste management by +41% and the impact tax on Infrastructure by +130% .
The report cites that in the Municipality of Tirana the increase in its own income, together with the factors of good administration and new construction permits approved, has been directly affected by the increase in the average reference prices of building surfaces, which affects the base value for building tax and revenue value for infrastructure impact tax).
Meanwhile, the other 60 municipalities taken together have collected 14 billion ALL or 29% more than 9 months 2023 (10.8 billion ALL).
The data show that with the establishment of new reference prices in all municipalities, except Tirana, which according to the Minister of Finance Petrit Malaj, will be determined within the period March-April 2025, the municipalities will have more opportunities to significantly increase revenues from the tax on the building or the impact on the infrastructure, especially the units in the coastal areas where the value of the properties has increased significantly.
The report cites that out of 61 municipalities in the country, for the period of 9 months 2024, 53 municipalities result in an increase in their own income, reducing the number of municipalities with a decrease to 8 municipalities, from 22 municipalities that were a year ago.
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