ALTAX Observatory presents the methodology of the ALTAX Fiscality Index

ALTAX Observatory has presented the complete analytical methodology for constructing the ALTAX Index of Fiscality (IAF), a new strategic instrument that aims to provide the most integrated and comprehensive assessment of the real functioning of the fiscal system in Albania.

According to ALTAX Observatory, the IAF is not a traditional statistical index, but a multi-dimensional analytical framework, built to measure not only the level of revenues and expenditures, but also the quality of fiscal intervention, the fairness of the tax system and the structural sustainability of public finances over time.

The IAF methodology is based on three main pillars, which function as autonomous indices and at the same time as components of a single integrative model:

• The Fiscal Pressure Index (IPF), which measures the real intensity of pressure on taxpayers and the cycles of administrative intervention.

• The Efficiency and Fairness Index (EDF), which assesses the quality of tax administration, the level of evasion, the administrative burden and the perception of fairness.

• Fiscal Sustainability Index (IQF), which analyzes revenue stability, public debt, expenditure efficiency and resilience to crises.

These three indices are combined in a single synthesis formula, where the main weight is given to the quality and fairness of the fiscal system, reflecting the ALTAX philosophy that sustainable formalization is not achieved through pressure, but through trust and institutional intelligence.

According to ALTAX, the ALTAX Fiscality Index is conceived as an “intelligent fiscality metric”, which simultaneously measures how strong the state is in collecting revenues, how fair it is in distributing the burden and how sustainable the system is for future generations.

The first official report with the value of the ALTAX Fiscality Index for 2025 is expected to be published very soon and will represent a new reference point for the public debate on public finances, fiscal reforms and the perspective of economic stability in Albania.

ALTAX Observatory emphasizes that the IAF aims to serve as a strategic tool for policymakers, business, media and international partners, by providing an independent, structured and empirical overview of the real state of fiscality in the country. In this sense, the IAF does not aim to replace existing indicators, but to integrate them into an analytical model that links pressure, fairness and sustainability into a single development narrative.