Torturing tax bureaucracy
21/11/2013 00:00
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The tax system in Albania is a heavy bureaucratic cog that costs money
and tiem for the business. World Bank ranks Albania as the 146th country
with the most difficult tax system, from 189 economies.
The World Bank says that although the tax level is lower than the average in the region and the world, the Albanian business has a heavier burden due to the high administrative costs related to the time that this process takes. According to the report, an enterprise in Albania needs to make 42 payments each year to pay their obligations to the state, from 30 that’s the European and Central Asian average. The report explains it in details, although Albania has this high payment.
According to him, businesses in Albania are obliged to make 13 payments each year over profit, 12 for contributions and 17 for other national or local taxes. This takes 357 hours of work to companies each year. The average in the region is 250.
In 2007, the Democratic Party government presented the flat tax and besides lowering taxes for businesses, they also aimed to make procedures easier. According to the World Bank, the tax system in Albania remains one of the most difficult in the world, and this money doesn’t even go to the state, but are lost as bureaucratic cost.
The new government promised to implement a new policy after January 1st, with significant changes on direct taxes and those from individuals. But besides the debate on principle, progressive or flat, the tax system in Albania needs to be lightened and currently it encourages informality.
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