Albania to enforce progressive income tax system from February

Starting from February 1, around 97 percent of Albanian taxpayers will feel the effects of the progressive income tax system as part of a new fiscal package, Albanian General Taxation Directorate Office said on Friday. The progressive taxation scheme on personal income tax will be applied in three categories. The first category of income up to ALL 30 000 (288 U.S. dollars) shall be exempt from taxation. The tax base for employment income which exceeds 30 000 to 130 000 ALL per month will be 13 percent and taxation rate for employment income exceeding 130 000 ALL will be 23 percent. The new fiscal package approved along the 2014 state budget eases fiscal burden for around 97 percent of Albanian taxpayers, senior Albanian government officials stated. According to them, application of the progressive taxation system on the personal income will benefit 97 percent of Albanians and turns into consumption of 15 million U.S. dollars and the ease of fiscal burden will return the 13th month salary mainly to teachers and nurses. Albanian Prime Minister Edi Rama has asserted that the progressive tax system would correct the injustices of the past and would equally shift the tax burden among citizens and business. Amendments to the personal income tax legislation were approved by the parliament on December 28, 2013, before taking effect on February 1.