ALTAX publishes the study on tax incentives and how much consumption has been incentivized

ALTAX publishes the study on tax incentives and how much consumption has been incentivized

This weekend ALTAX publishes an analysis related to the answer to the question that is also titled “Can temporary tax breaks stimulate consumer spending?”

Based on official statistics, the analysis clarifies the problem of tax benefits by answering the title from several angles.
Emphasis in this analysis is placed on some moments that should not continue in the same way.

The analysis guides us, that just as the main objective of the Bank of Albania is to keep inflation within the 3% level, the government should also have set an objective to reduce informality to levels similar to the countries of the region and with the goal that at the beginning of the decade government, which just closed to be at the evasion levels of the EU countries.Meanwhile, keeping a low level of evasion would have a direct effect on a low level of informal employment. Keeping the informality of work at low levels should be another important objective of the employment policy.

If these targets had been set by the government years ago, they would in themselves have prompted stronger and more effective action in a wide range of policy areas.

Current policies should be kept in line with current realities. In the Albanian economy, the self-employed are usually self-employed, with low incomes and therefore are not expected to pay significant amounts of taxes.

The policies that need to be adopted in the near and long-term future cannot induce a change of processes and procedures within the year, but with measured steps and consultation with many actors.

Political decisions should be driven by feasibility studies, for achievable objectives and absorbable from economic and social reality. Thus, the focus should be on promoting a long-term transition and not influenced by the mentality of electoral benefits, as it should serve the country and the future in the first place.

In all of this analysis, what we suggest, as a reiteration of earlier suggestions, is that a comprehensive and in some respects gradual political strategy is needed.

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