Ordinary Albanians will be hit hard with an increase in taxes for the next four years, at least.
Albania’s Prime Minister Edi Rama has revealed some of the fiscal priorities to the new cabinet. The tax plan resembles a conservative (budget) plan with the focus on the wealthy. During the first meeting of the new cabinet, Edi Rama mentioned that there will be changes in the “wealth distribution”.
The educated professionals will see an increase of 3% (monthly) on their taxes, whereas the number of those benefiting from a decrease in taxes is much smaller than the rest of the working force. Unlike a traditional, socialist cabinet, Rama 2 fiscal policy resembles that of a right wing cabinet prioritizing the business, the entrepreneurs, the corporate. The government will be smaller than the previous one, meaning fewer programs, services and specific allocation of funds for the corporate.
In the next four years, the government's fiscal policy will ease the tax burden for the two wealthiest populations: the business, and individuals making over 130 thousand (lek) a month. The proposed tax plan had two significant changes. First, the fiscal plan yields a decrease in taxes aimed at 15% for the corporate dividends, and secondly, a decrease in their taxed income (salary) up to 23%. This bracket will not affect the majority of employees and workers.
The budget and planning are yet to be revealed in the next coming months, but since the country has no formal industry or agriculture its budget will lean heavily on the taxes collected from the citizen.