The government admits: The budget lacks 1.8 billion euros from underreporting, evasion and informality

The government estimates that theoretically the missing revenues from the value added tax in the budget only from underreporting in invoices, informality and fiscal evasion amount to 1.8 billion euros per year.

The figure accounts for 90 percent of the current €1.9 billion in tax revenues collected through this tax. The amount comes out in the medium-term revenue strategy, released for public consultation by the Government.

It states that if every good and service were charged with the standard tax rate, the theoretical income from VAT would be 3.67 billion euros, while the actual income is currently at the level of 1.91 billion euros.

The strategy recognizes informality as a widespread phenomenon, despite the efforts made by the Government and the Bank of Albania against this phenomenon. Among the reforms that are considered the most effective is that of fiscalization.

The document warns that the Bank of Albania's measures alone are not enough and the Government will intervene through decisions to toughen the fight against informality. For this purpose, the strategy proposes to set a limit for cash payments for each transaction.

Currently, cash payments between individuals have no restrictions, nor do those between individuals and businesses. The only restriction in force is that between businesses, which are prohibited from cash transactions over ALL 150,000. In the document drawn up by the Government, it is requested that this ceiling be reduced even further and a level that is being discussed is that of 50 thousand lek.

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