Albanian government to increase tax on deposit interest rates from 10% to 15%

The agreement signed between the Albanian government and the IMF has led to the application of coercive measures. Starting from January 1^st 2015, taxes on deposit interest rates, dividends and rents will increase from 10% to 15%.

This governments’ measure will increase more the tax on profits of individuals, since taxes on salary increased by 23% after the application of progressive taxation system in 2013. Experts say the increase of taxes on deposit interest rates may take effect on the exit of money from the financial market towards informal channels, which causes negative effects on the economy.

Economy expert Ilir Binaj says that only countries with a developed economic system and stable macroeconomic indicators do not apply tax on deposit interest rates. Countries like Albania that are still in their development process, mostly apply this tax. According to the expert, Albania must decrease the dept level as soon as possible and this leads to these coercive measures. Understandably, this is a measure that should be taken, said Binaj.

The increase of this tax, ranks Albania the second country in Balkan to apply high tax on deposit interest rates, since Serbia holds the first place.

News source: Scan TV
Photo credits: Flickr / 401 (K) 2012