TIRANA, Sept 24 /ATA/ – Albanian government plans to relinquish the scheme of reduced tax rates in favor of expenditure-based incentives.
The Medium Term Revenue Strategy, which has been forwarded for public consultation recently, focuses on a series of costs-based rate reliefs for priority sectors of the country’s economy.
“The goal is to move from tax rate-based incentives to expenditure-based incentives, by providing tax relief for priority sectors of the economy,” the strategy notes.
Theoretically, systems containing several tax rates create room for tax avoidance and the taxpayers’ inclination to take advantage of low tax rates is well known.
The total number of registered businesses is 141,300, of which taxpayers with an income of 0-5 million lek are 105,293 or 74.5% of the total; taxpayers with incomes of 5-8 million lek are 13 281 or 9.4% of the total; taxpayers with income 8-14 million lek are 8 010 or 5.7% of the total; taxpayers with income over 14 million 14 716 or 10.4% of the total.
/u.sh/
