State tax revenues increased by income tax collection in 2014

State tax revenues increased during January-November period in 2014 as income tax collection reached the amount of 24.794 million ALL, approximately about 88% of the annual plan, showed figures published by Ministry of Finances. Total state tax revenue of income tax in 2014 declined, if compared to revenues collected by income tax in 2013, and were also lower than the amount predicted by the government in the beginning of 2014.

This decline came due to new policies applied by the government in the taxation system, precisely in the incomes from wage in the beginning of 2014. At that time, with the entering in force to the new budget 2014 and the fiscal package, Albanian government implemented progressive taxation regime and increased the rate of corporate income tax from 10% to 15%.

This new regime presumed that employees whose wage is no more than 900.000 ALL would pay less than before. Personal incomes classified in sub groups as: Personal incomes of the salary in both private and public sectors; Personal incomes from bank interests; personal incomes from dividends; personal incomes from the sale of real estate and other sources.

News source: ATA