Taxes on salaries/ The law enters into force, the calculation for new salaries is made from June 1

2023-05-03 20:07:00Biznes SHKRUAR NGA REDAKSIA VOX
Taxes on salaries/ The law enters into force, the calculation for new salaries
Taxes

From June 1, the tax burden will be eased on salaries of 40,000 to 60,000 Lek. With the new income tax law, all those who receive 50,000 ALL or less will only have their insurance contributions withheld.

For salaries from 50,001 lek to 60,000 lek per month, income tax will be paid at the rate of 13 percent of the amount over 35,000 lek. For an employee with a salary of 60 thousand ALL, the tax he has to pay is already 3250 ALL per month. For salaries of 60 - 200 thousand, the tax will be 13% and above 200 thousand Lekësh with 23%.

According to experts, the removal of another category from the tax base is bad news for the fiscal system as a whole

"By increasing the threshold, this has more of an approach that does not serve tax equality for the reason that any tax exemption or tax exemption is charged to another category, where we have seen laws such as double employment taxation or taxation on self-employed, and lie mainly on work. The key to success is the expansion of the tax base, the moment that the progressive tax extends mainly to work and not to profit tax, which is naturally called deficient and has generally narrowed the tax base." - said Eduart Gjokutaj.

Albania is one of the countries with the lowest tax collection in relation to GDP. The figure reaches up to 26%, the penultimate in the region, this and because of tax loopholes

"The fiscal culture on the one hand, the hasty decisions on the other hand and the way of working with the business by not being a party, but dictating the decisions also fall into this type of firo, insert here also the fiscal exemptions make us to be in such indicators, that we can collect taxes at the level of Serbia and North Macedonia, we still cannot achieve something like this." - said Eduart Gjokutaj.

As for the wage policy, the government will also subsidize manufacturing, agriculture and fishing businesses for the increase in the cost of minimum wages./Tch


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