Minister of Finance Petrit Malaj published official statistics appreciating that the local finances are growing stronger as local government capacity improves. The minister reported that local revenues for the first half of 2026 reached 34.8 billion lekë, an 82% increase (15.7 billion lekë more) over the same period last year. Meanwhile, local expenditures rose 16% to 42.2 billion lekë, adding 5.7 billion lekë compared to the first half of 2025.

According to Malaj, property tax collections grew by 25% in early 2026, totaling 5.9 billion lekë.

The municipalities with the highest growth are: Himara with 276%; Cërrik with 262%, Vlora with a growth of 188%; Patos 168%; Elbasan with 53% and Tirana with a growth of 23%.

The minister emphasized that the increase in revenues creates more opportunities for municipalities to finance investments and provide better quality public services to citizens.

He also evaluated this performance as an indicator of the improvement of local fiscal administration and the consolidation of the financial capacities of local governments, in function of the sustainable development of the communities. /e.xh/j.p/p.s./

According to the data, the revenues from contributions during 2025 amounted to 154.7 billion lekë, i.e. about 1,332 million lekë more.

During the meeting, it was highlighted that this was a result of the work against wage informality. Hence, the revenues marked an increase of 10.9% compared to 2024.

Also, the number of contributors to the social insurance scheme during 2025 reached 839,910 people, about 31.5 thousand more compared to the previous year, or 3.9% more.

Minister Ibrahimaj praised the work done in keeping expenses within the scheduled limits, the positive financial performance of the Social Insurance Institute, the increase in the number of contributors and the sustainability of the social security scheme. /p.s./

According to a report by the General Directorate of Customs, the strengthening of the lek against foreign currencies had a negative impact on revenues during the year, reducing collections by around 9.5 billion leks.

Excluding the exchange-rate effect, revenue growth would have reached about 19.5 billion leks, or roughly 10% more than in 2024, the report said.

Revenue collection reached 98% of the annual target. Adjusted for the exchange-rate impact, however, actual collections exceeded the plan by about 5 billion leks, or 103.3% of the target.

The Customs Administration said the results reflected improved management, tighter controls at customs points and measures to curb tax evasion, which helped boost revenue collection.

Revenue from excise goods rose sharply in 2025. Fuel clearances reached about 760,000 tonnes, up 75,000 tonnes from a year earlier. Cigarette clearances totalled 3,450 tonnes, exceeding the plan and rising by 250 tonnes compared with 2024.

Customs clearances also increased for coffee, by about 500 tonnes, and for beer, by around 1,000 tonnes from the previous year.

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According to him, the sustainable economic growth and responsible management of public finances will lead budget revenues to 10 billion euros by the end of the decade.

“Budget revenues are projected to reach 10 billion euros in 2030, with an increase of 311 million euros per year as a result mainly of the expansion of the tax base,” said Malaj.

Malaj emphasized that the “Fiscal Peace” will bring significant relief to citizens and businesses within the 2026-2030 timeframe, through the forgiveness of arrears of tax and customs duties, paving the way for a new relationship between the administration and taxpayers.

He also said that the 0% tax policy for small businesses will continue until 2029, with the aim of promoting small and formal entrepreneurship.

The government has paid special attention to the agricultural sector, where the VAT scheme for farmers is expected to be revised in line with EU practices.

In this context, the minister noted that the farmers will be provided with compensation of up to 10% of VAT for each purchase of goods or services that support the production chain.

In the field of property taxation, the new reform will be based on the real value of the property, implementing an updated methodology of reference prices, with the aim of improving fiscal justice and reducing informality.

The minister also emphasized that a new process of revaluation of real estate will be opened with a reduced tax rate of only 5% for individuals and legal entities, so that to encourage accurate property declaration. /j.p/p.s./

The increase reflects improved economic performance and stronger fiscal administration, the finance authorities said.

Higher corporate profits driven by domestic consumption and expansion in key sectors such as construction, tourism and services contributed to the rise.

Authorities said efforts to curb tax evasion and bring more businesses into the formal economy also played a role.

For 2025, profit tax revenues are projected to reach about 60.3 billion lek, with a focus on strengthening risk-based audit systems and developing tools to deter and prevent tax avoidance.

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Import VAT collections reached 117.8 billion lek, up 2.7 billion lek from the same period last year, while net VAT revenues rose 17.2% to 50.4 billion lek, driven by an expanded tax base, higher domestic consumption, and improved tax administration.

VAT refunds totaled 19.1 billion lek, slightly higher than a year earlier, and 2.8% above planned levels.

Authorities said the growth in net VAT reflects enhanced fiscal discipline and ongoing efforts to combat the informal economy.

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“The businesses are showing a positive reflection towards the formalization and fulfillment of legal obligations, a fact that is shown by the increasing figures for these two indicators,” the Directorate said.

According to data published by the Directorate, for the period January-August 2025, there were collected 14 billion lekë from insurance contributions, an increase of 12.2% over schedule.

Also, revenues from the personal income tax recorded 8.5 billion lekë with an increase of 33.4% over schedule.

These figures imply not only to a more efficient tax administration, but also a growing awareness of businesses about the significance of insurance contributions, which guarantee more secure and dignified pensions for citizens.

The Directorate also said that it will continue to support businesses in fulfilling their obligations, improving a climate of cooperation and transparency, in function of a fairer and more comprehensive tax system. /r.e//a.f/p.s./

According to data from the General Directorate of Taxes, the total revenues collected during August reached 385 million euros.

If compared to August 2024, the revenues have been exceeded by 24 million euros. Expressed in percentage, this means 6.5% more than last year.

While in regard to the plan, the increase in revenues is 14 million euros. /r.e//a.f/p.s./

Malaj said that the revenues from the Tax Administration reached 1.5 billion euros, or 204.6 million euros higher during the January-July period of this year, compared to the same period last year.

Meanwhile, the Customs Administration collected 1.4 billion euros in the budget during this period, or 57.9 million euros more than in the first 7 months of 2024.

For the same period, the revenues from contributions resulted in 1.1 billion euros or 120.2 million euros more than in the first 7 months of 2024.

On the other hand, business turnover is estimated to have increased by 620 million euros compared to January-July of last year. /r.e//a.f/p.s./

According to fiscal indicators published by the Ministry of Finance and Economy, collections from special funds increased by around 9.7 billion lek  – a 12.5% rise compared to the same period in 2024  – achieving 104.8% of the planned target for the semester.

Special fund revenues include contributions from social and health insurance, collected by the Tax Administration, the Social Insurance Institute (ISSH), and the Health Insurance Fund (FSDKSH).

Social insurance contributions accounted for 76 billion lek, while health insurance revenues totaled approximately 11.5 billion lek.

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