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Aktualitet2024-07-13 21:55:00

Property revaluation tax, Malay: The government gives in with the fiscal policy, initiatives cannot be made only when there are elections

Shkruar nga Pamfleti

Property revaluation tax, Malay: The government gives in with the fiscal policy,

The former Minister of Finance, Arben Malaj, has spoken about the new decision on the property tax.

Malaj said in the show "Revieë" in Euroneës Albania that it is important that taxes are not changed too often, because according to him, this gives uncertainty and instability to business.

He also said that the education of tax collectors in Albania is poor, as according to him, some of them are involved in nepotism and others are captured by business interests.

Excerpts from the studio discussion:

Question: What does this moment look like and this proposal to once again repair the assessment of properties and to reduce it from the rate of 15% to the rate of 3% of the tax and the tax.

Malay: Any tax that is reduced is expected to have a positive effect. But this positive effect is minimized by the way tax policies are designed. In principle, tax policies should be part of the previous year's budget. Good management of public finances requires that the budget law be accompanied by the statement of tax changes, so that business is recognized in time and prepared in advance.

The second is the fact that good financial management requires that taxes not change once every 3 years. Regardless of the studies that have been done, what remains are the 4 main principles of taxation made by Adam Smith, which first defines the tax burden, which according to him should be distributed as best as possible. The second is that the education of tax collectors is poor. What principles do they have, how affected are they by nepotism, how affected are they by business interests, etc. Adam Smith's second principle is certainty.

Businesses should know that taxes do not change from time to time. You can't make a proposal in the middle of the year and say it will work until the next election. In case a request has an impact on the budget, it goes to the government. The government is only entitled to 30 days. Then the Parliament has a legal duty to take it to the session and vote yes or no.

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