Removing taxes and increasing wages

30/01/2013 20:00

The Prime Minister announced the effects of the government decisions to remove income tax for wages lower than 30.000 ALL.

“The key word of this meeting is our fiscal revolution, which has not stopped but this time consists with a 10% growth of wages for more than 200.000 employees in the private sector who are paid less than 30.000, and 15.000 employees of all public enterprises of the local and public sector with a wage lower than 30.000, for which the income tax will be removed”, Berisha declared.

The Prime Minister’s declaration when saying that this removed tax will increase wages with 10%, for 215.000 workers of the private and public sectors are incorrect.

The real number varies from 5.2% for those who are paid with less than 21.000 ALL per month and 6.7% for those who are paid with 30.000.

Since 2007, when the government implemented the flat tax, it was decided that employees who are paid under 30.000 should not pay income tax for the first 10.000 ALL.

As result, citizens who are paid with 21.000N ALL each month pay 1100 ALL each month, or 5.2% of the wage.

Someone who is paid with 30.000 pays 2000 in taxes, or 6.7% of the total.

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