The Albanian government is set to carry out several changes to the 2022 budget, including reviewing the VAT taxable turnover, payroll taxes, excise duties, and tax rates.
In addition, the Ministry of Finance plans to implement a sustainable fiscal package for 2022-2025.
The government is set to intervene in the VAT threshold, excise, and tax rates, forecasting a 3.1 % increase in tax revenues.
The tax review is in line with the advice of the International Monetary Fund (IMF), which recommends simplifying thresholds for all types of taxes, as current policies have led to tax evasion and injustices in fair taxation.
Wage tax thresholds, for example, have created opportunities for artificial tax evasion. Many self-employed have fragmented the declaration of their wages in two or three countries, to avoid the 23% high wage tax.
In fact, the strategy for this fiscal package was requested in July 2019, but the earthquake, and then the pandemic, delayed its application and approval for the next 3 years.
The document issued by the Finance authorities is attached to the 2022 draft budget, which states that small and medium-sized enterprises will receive fiscal incentives in order to overcome the post-earthquake and pandemic crisis.
YOU MIGHT ALSO LIKE
