Structural disproportions in manufacturing and trade were in dire need of continued investment, high rates of profit on many consumer goods and services; a negative balance of foreign trade, public debt remains high, unemployment as a major problem still unresolved; 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 equilibrium in Albania can only be achieved if macroeconomic policies are aimed on the one hand at limiting the supply of money in circulation and a real increase in the level of interest (which is generally intended to be realized). On the other hand, the reduction of the tax burden, or rather, its equitable distribution, the greater circulation of capital in the country, as well as the growth of exports of goods and services, must be guided by a policy that reflects the commitment of people and specific purposes within their national.
Eventually, some administrative decisions of successful monetary and fiscal policies have had the intention of minimizing the negative consequences of economic imbalances. But these measures cannot be done separately to improve the economic situation, who knows what. International experience suggests that it is difficult to foster economic growth and create economic equilibrium without genuine economic and fiscal liberalization.
Seen in this context, in a free market economy that is being built in our country, taxes and rates, in addition to directly influencing the distribution of income and resources, play an important role in stabilizing the economy. The forms of taxation and the amount of the tax burden have a direct effect on the amount and structure of consumption and savings of citizens, on the amount and structure of foreign and national investment, but also on production and consumption. trade. Meanwhile, the negative impact of taxes depends on the distribution of the size and structure of the tax 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 the At the same time, it encourages the informal economy instead. .
Real tax reform and its effects
In the last decade many other countries have been forced to undertake tax reforms. The dominant objective of these fiscal reforms has been to minimize disproportions, improve efficiency, and stimulate economic growth. The effect that these reforms would have had for fiscal neutrality and intervention was much less in the factors that act in the market.
The tax reform that is part of the fiscal reform should also aim to eliminate the budgetary imbalance, correctly reallocate the tax burden, facilitate tax assessment and collection practices, and improve income distribution. In our country, the tax administration is oriented towards advancing in these directions precisely as objectives in a) expanding the base of taxpayers to pay personal income tax and application of the lowest rates in the countries of the region, b) expanding the base of taxpayers that pay the income tax and the application of the lowest percentage among the neighboring countries; (c) adaptation to the VAT law given the changes in the structure of tax revenues; d) improvement of the tax administration by negative elements to combat corruption and inefficiency in the management of its employees.
In particular, 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 tax, VAT and income tax, since these taxes generate numerous economic imbalances: increase in unrecorded economic activities and barter transactions, increase in tax evasion, capital flow, massive use of foreign currency, reduction of bank deposits. However, the lack of a tradition of relations between the government and business institutions and the limited administrative resources for the tax authorities and the financial management of these resources as a force to understand and the difficulties they face must constitute the main concern in the implementation of a revolutionary tax policy of the current Albanian government.
Change in the relationship between the tax administration and governance management
The lack of tax administration as one of the key administrations in the entire public administration will increase the cost of implementing part of its main operations and the loss of a part of the income provided due to the non-management of the entire commercial front (at fair or no), has the duty to administer. Within the framework of the implementation of a tax reform, it is necessary to fight to achieve transparency. This transparency is related to the purposes of the tax administration regulations established and declared at the beginning of the implementation of practices through bulletins. The publicity of each subbranch of the economy and of the tax collection objectives of each area will reduce the extent of subjective and personal judgments and will increase the form of voluntary payment of the tax.
For the tax administration, it is necessary to close the tradition of negotiation and agreements on taxation instead of the application of laws. The tax reform requires a reconceptualization of the coordination of relations between the center and the branches of the tax offices in terms of carrying out the preparatory work and the reform itself. This reform should be expanded to increase its argued administrative authority that falls to the head of various international surveillance missions. Now, after more than a decade of guidelines and monitoring, the time has come for these missions to provide a summary of the fiscal experiment they carried out in the former socialist countries. It is the Albanian government, along with the tax administration, that has held a very difficult burden of reforming the mindset of the Albanian people in the first place, at least since the time of the Ottomans. It is precisely these requests to change the authentic formulas of international fiscal policy that have been modified to guide a stifling tax burden that Albania performs in certain segments of the economy, since there are the deficiencies mentioned at the beginning of this article.
However, all of that, to succeed depends on taxpayer demands, it will be politics, serious preparation in the form of preliminary legal research project, visionary and effective package, timing, speed and persistence. It must become a priority for the government that the tax administration be placed at the center of the reform, as it is an administrative segment that is only taken away and is not given what it deserves. Each of the initiators of the revolutionary reform must first of all take into account that any tax reform requires an Albanian in accordance with the rules as the general social and economic conditions in the areas of the country. For this, it is possible that we have reached some point of compromise between political parties, businessmen and the population, or between theory and the real economic and social environment.
New trend in relations with taxpayer administration
Among the conclusions reached by industrial lobbies is that tax rates are better established. These rates applied in this way will better serve the redistribution of income, which is the task of the State to establish a truly progressive tax system. From carrying out the mentality of the past is that the State must guarantee the greatest amount of services that it is not possible to achieve without the fiscal contribution of all in the State budget. The change in this mentality will serve to reorient fiscal policy towards personal income. In order to reduce distortions in the Personal Income Tax, the reform at this point must determine that the annual amount of personal well-being in the achievement of any of its manifestations in any form of this Welfare (movable property or assets) will form part of your tax. For the purposes of budgeting income, personal income tax must be set as the most important after VAT, given the spread of the forms of creation and the non-application of broad-based personal income tax up to now on these incomes.
Personal income is an accurate measure of personal ability to consume and save. The following personal income tax aims to increase tax revenue for the state and the distribution of the tax burden has dipole effects on the Albanian society. Although measuring actual personal income potential is a difficult task to implement in this direction, it may be found that it lowers the standard point of hiding your opportunities. Asset condition, depreciation between legitimate and proportionate business, and personal consumption expenses often play a major role in accurately measuring personal income.
But, taking into account the income tax and VAT, it is to say that and in this sense they have a different approach to their management. Given the close relationship that the types of taxes have with each other, see the withdrawal and the momentum that they have between them. The search for these revenues at the appropriate moment in which they are created would lead to satisfying their relatively low cost and the delegation of cooperation and self-control functions directly to the taxpayer.