As per the data released by the Ministry of Finance in its report on fiscal indicators, revenues from this stream reached 7.2 billion lek, which is 13.6% higher compared to the January-November 2023 period, and 857 million lek, or 1.4%, above the 2024 eleven-month target.

The increase in revenue from this stream is attributed to the government’s policy of wage increase.

The revenue in personal income tax collections in the 2025 budget is projected to be 70,040 million lek, recording an increase of 5.6 billion lek or 8.7% higher than the projections for 2024.

The revenue base for 2024 has decreased by approximately 500 million lek (one-off), which was previously generated from the tax on the profits of freelance professions.

Based on this, the forecast for personal income tax revenues takes into account the increase in revenue generated by economic growth, the effects of the public sector wage reform that began on July 1, 2024, and the wage increases, which will generate additional revenue from income tax on salaries.

The anticipated increase in employment and average wages in the private sector, aligned with public sector wage reform, is expected to contribute to revenue growth. Additionally, increased revenue is projected from improved administrative practices under the Medium-Term Revenue Strategy for 2025, with its draft expected to be approved soon.

/sm/