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Changes in draft law on tax procedures are designed to support fight against informality

 

TIRANA, Oct  31 /ATA/ The Parliamentary Committee on Economy and Finance reviewed in principle the amendments in the draft law “On tax procedures” as part of the Fiscal Package that will be implemented in the coming year.

The rapporteur of the draft law, the Socialist Party MP, Anila Denaj, announced that the changes in the Fiscal Package are proposed as part of the target of the draft budget for the coming year to ensure economic growth of 2.6%, as well as cope with the crisis triggered by war inflation and international crunch.

“It aims to successfully address the challenges of the state budget and support every Albanian household to navigate through a year of adversity,” said Denaj.

Specifically, MP Denaj said that the changes laid down in the law “On tax procedures” are put forth as part of the fight against informality.

“Fight against informality and increasing awareness in the followup to  many investments in the systems from fiscalization to other laws of the Moneyval package should not be limited to awareness and the promotion of self-declarations, instead they should also include administrative measures, giving more role to the tax administration,” said Denaj.

According to her, the law also proposes clarification of legal definitions so that the tax administration is organized with reference to basic functions, as well as increasing the powers of tax authorities to control individuals.

 

While the Democratic Party MP, Jorida Tabaku, stated that the proposals made by the government put the emphasis on the concept of increasing the fine to reduce informality and the use of cash. But, she pointed out, practice has proven that the informal economy and cash money has not shrunk whenever the pressure on the shareholders in business build up.

“The informal economy is fought through systems rather than fines. When  actions been taken against informality, informality has increased and we have not succeeded in minimizing it by force, as the approach of the tax administration has   failed,” she said.

Tabaku asked for its review because, in her opinion, the law does not serve the purpose of reducing informality.

/sm/

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