TIRANA, April 13 /ATA/-By Maela Marini/ – Inclusion of the small business in the VAT system will create equal opportunities in the market, fight informality and curb fiscal evasion by large companies and entrepreneurs.
In an interview with the Albanian Telegraphic Agency, the head of the Technical-Legal Sector at the General Taxation Directorate, Eva Rama, explains the expected effects of the decision to include small businesses in the VAT scheme.
According to her, inclusion of the small business in the declaration scheme of VAT is a process that does not incur costs.
“Tax administration is totally committed to informing business in the process of relevant documentation and required bookkeeping for this new tax responsibility,” Rama said.
With regards to the state budget revenue for this tax collections, Rama emphasized that the revenue collection from this tax is not significant to the state budget, but the decision aims at curbing informality and extend the VAT transactions chain.
Asked whether the decision would encourage fiscal evasion due to the chain effect caused by the inclusion of small business in VAT system, Rama noted that the move will regulate the market.
“Inclusion of this taxpayers group in the VAT system will create equal opportunities in the market. Its primary goal is to fight informality and keep transaction between large and small businesses under control. Therefore, this is a regulator of the market,” she said.
In this regard, Rama explained that the decision doesn’t favour large businesses.
Commenting on the speculations suggesting that the initiative will negatively affect consumers and will lead to a new price hike, Rama said the decision has nothing to do with the consumer prices.
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