Structural disproportions on manufacturing and trade was an urgent need for continued investment, high profit rates on many consumer goods and services; a negative balance of foreign trade, public debt is still high, unemployment as a significant unresolved problem still; and a small amount of incomplete structuring of savings and investments in general show a lack of economic balance in many segments of the Albanian economy.
Sustainable economic growth and economic balance in Albania can be achieved only if macroeconomic policies will be aimed from one side to limit the supply of money in circulation and a real increase in the level of interest (which generally is attempted to realize). On the other hand reducing the fiscal burden, or rather its equal distribution, increased circulation of capital in the country, as well as growth in exports of goods and services must be guided by a policy that reflects the commitment of people and specific purposes within its national.
Eventually, some administrative decisions of successful monetary and fiscal policies have been intended to affect the minimization of negative consequences of economic imbalances. But these measures cannot be made separately to improve the economic situation, who knows what. International experience suggests that it is difficult to encourage economic growth and creating an economic balance without real economic liberalization and fiscal.
Seen in this context in a free market economy, which is being built in our country, taxes and fees, as well as directly influential in the distribution of income and resources play an important role in stabilizing the economy. Forms of taxation and the amount of fiscal burden have a direct effect on the amount and structure of consumption and savings of citizens, on the amount and structure of foreign and domestic investment, but also on the production and trade. Meanwhile, the negative impact of taxation depends on the size distribution and structure of fiscal burden and causes economic phenomena such as industrial disproportions between cities and areas in the production of goods and services and limits the amount of foreign investment and simultaneously encouraging the informal economy instead.
Real tax reform and its effects
In the last decade many other countries have been forced to launch fiscal reform. Dominant objective for these fiscal reforms has been the minimization of disproportions, improve efficiency and stimulate economic growth. The effect that these reforms would have thought for tax neutrality and intervention was much less in the factors that act in the market.
Tax reform that is part of the fiscal reform should also aim at eliminating the budget misbalance, right reallocation of fiscal burden, facilitation of assessment practices and tax collection and improving income distribution. In our country the tax administration is oriented to move in these directions exactly as targets in a) expanding the base of taxpayers to pay tax on personal income and application of the lowest rates from the countries of the region, b) expanding the base taxpayers who pay tax on profits and the application of the lowest percentage among the countries around us; c) adjustment to the VAT law given the changes in the structure of tax revenues; d) perfection of tax administration by negative elements to combat corruption and inefficiency in managing its employees.
Particularly, for the new fiscal year, the Albanian tax reform should focus on the implementation of transparent rules and efficient assessment and collection of personal income tax, social taxes, VAT and profit tax, given the fact that these taxes generate imbalances numerous economic: increased economic activities that are not registered and barter transactions, increase tax evasion, capital flow, massive use of foreign currencies, reduction of bank deposits. However, the lack of a tradition of relations between government and business institutions and limited administrative resources to tax authorities and financial handling of these resources as a force to be understood and the difficulties facing should constitute the main concern in implementing a revolutionary policy in taxes from the current Albanian government.
Changed relationship between tax administration and governance management
Failure to tax administration as one of the key administration throughout the public administration will increase the cost of implementing part of its main operations and the loss of a part of the revenue provided due to the non administering all business front (at fair or not), it has the duty to administer. In the framework of the implementation of a tax reform must fight to achieve transparency. This transparency is related to the purposes of tax administration rules established and declared at the beginning of implementation of practices through newsletters. Announcement for each sub-branch of the economy and each area’s objectives for tax revenue collection will reduce the extent subjective and personal trials will increase the form of voluntary tax payment.
For tax administration is necessary that the tradition of negotiation and agreements on taxation instead of law implementation have to be closed. Tax reform requires a reconceptation of the coordination of relations between the center and branch tax offices in terms of conducting the preparatory works and reforming itself. This reform should be extended to increase its administrative authority argued that it falls in front of various international monitoring missions. Now, after over a decade of guidelines and monitoring and comes a time that these missions should provide a summary of fiscal experiment that they performed in former socialist countries. It is the Albanian government, together with tax administration, which has maintained a very difficult burden of reform in the first place the mentality of the Albanian people, at least since the time of the Ottomans. It is precisely these applications to change the formulas authentic international fiscal policy was modified to orient a suffocating fiscal burden that Albania has a performance in certain segments of the economy, as there are shortcomings mentioned in the beginning of this article.
However, all that, to succeed depends on the demands of the taxpayers, will the policy, serious preparation in the form of draft preliminary legal research, visionary and effective package, the appropriate moment, the speed and persistence. You must turn priority for government, that tax administration be put in the center of reform, as is an administrative segment which is only take from and not given as much it deserve. Each of initiatory of revolutionary reform must above all take into account that any tax reform requires an Albanian accordance with the rules as the general social and economic conditions in areas of the country. For this, we may have reached some point of compromise between political parties, businessmen and the population, or between theory and actual economic and social environment.
New trend of relations with taxpayers’ administration
Among the conclusions reached by industrial lobbies is that tax rates are better established. These rates applied in this way will better serve redistribution of revenue, which is the task state of setting fiscal system really progressive. Since carrying out the mentality of the past is that the state should ensure as many services is not possible to achieve without the fiscal contribution of everyone in the state budget. We change this mentality will serve reorientation of fiscal policy to personal income. To reduce distortions in the personal income tax, reform on this point must determine that the annual amount of personal welfare in achieving any of its appearance in every form of this Welfare (active or movable property) will be part of their tax. In order to budget revenues, personal income tax should be set with the most important after the VAT, given the propagation of the forms of creation and personal income taxes non application of broad based so far on these income.
Personal income are an accurate measure of personal capacity to consume and save. Tax on personal income following aims to increase fiscal revenue for the state and the fiscal burden distribution has the dipolar effects into Albanian society. Although measurement of the real potential of personal income is a difficult task to be implemented in this direction can be found for narrowing the standard point of hiding his opportunities. State of the goods, depreciation between legitimate and proportionate business and personal consumption expenditures usually play a primary role in the accurate measurement of personal income.
But, given the income tax and the VAT is to say that and in this regard have a distinct approach to their management. Given the close relationship that they have the types of taxes with each other to see the withdrawal and momentum that they have between them. The pursuit of these revenues at the right time when they created would lead to meeting their relatively low cost and the delegation of cooperation and self control functions directly to the taxpayer.
