"Implement a tax on small businesses" - IMF: More revenue, accelerate property tax reform
The International Monetary Fund recommends the Albanian government to increase revenue collection performance and expand the taxpayer base.
According to the IMF report, tax revenue performance continues to fall short of potential. The tax revenue-to-GDP ratio is around 19 percent of GDP, or 3-5 percentage points below the European average and other Western Balkan countries. While the real potential is estimated at 23 percent of GDP.
According to the IMF, the variety of thresholds, tariffs, and exemptions encourages under-declaration and weakens self-enforcement.
The International Monetary Fund considers that addressing these shortcomings would not only resolve the expansion of the tax base but also support revenue administration.
For this reason, it is suggested to introduce a small business taxation scheme. “In addition, the initiative to modernize the tax regime for self-employed professionals should be resumed, ideally in connection with the abolition of the zero income tax rate for businesses with annual turnover of up to 14 million lekë,” the IMF report states.
On the other hand, it is recommended to accelerate the property tax reform, based on the implementation of the property tax law in 2026, including the creation of the fiscal cadastre and property valuation procedures, completed in a timely manner.
The IMF estimates that such tax policy actions could generate an additional 0.8-1 percent of GDP in the medium term.
Poll
"Albania, strong economic performance" - IMF: Challenges, rapid population aging, emigration, low productivity
The Executive Board of the International Monetary Fund (IMF) recently praised Albania's strong economic performance, supported by prudent macroeconomic......
Albpetrol produces 70,250 tons of oil/ Production, state-owned company maintains trend of the last 3 years
About 70,250 tons of oil were produced by the public oil extraction company Albpetrol during 2024, an almost identical amount compared to the last 2 years.......
Britain relaxes tax rules for wealthy foreigners - The measure aims to prevent billionaires from leaving the country
The United Kingdom is to relax some planned changes to its controversial tax rule for foreigners, following concerns about an exodus of millionaires. The......
25% Tariff on Canada and Mexico - How will Trump's taxes affect commodity prices?
US President Donald Trump intends to impose a blanket 25% tariff on Mexican and Canadian goods, saying those taxes would start on February 1. The tariffs,......
Putin's ally Lukashenko wins 7th term in election that the West calls a farce!
Belarusian leader and Russian ally Alexander Lukashenko extended his 31-year rule on Monday after electoral officials declared him the winner of a......
$2.5 billion for wildfire recovery - California, funds will be used for housing residents, rebuilding
California will spend $2.5 billion to help the Los Angeles area recover from recent deadly wildfires. Democratic Gov. Gavin Newsom signed the legislation......
How much are the major currencies being exchanged today?
The US dollar has gained points, being bought today at 93.5 lek and being sold at 94.7 lek according to the local exchange rate compared to last week. The......
Billionaire Michael Bloomberg will fund the UN climate change body after the US exits the Paris Agreement!
One of President Donald Trump's first moves in office this week was to withdraw the US from the Paris Agreement, as he did the first time he was......
