Yes! But the effect is ambiguous. Income inequality can either propel growth by offering incentives to people to be more productive or impair it by reducing demand and worsening health and education for the poorer, among other reasons. (more…)
Historically goods were physical, the production, distribution and consumption of these goods was easily taxable. Physical goods were produced at a manufacturing plant, shipped off to wholesalers and boxed on retailers’ shelves, with the final consumer walking away with a...
In latest decade tourism has become a primary economic activity of many countries in Mediterranean Sea region. If the economic benefits of tourism are clear (more added value and employment, for example), the various costs derived from it are also evident...
Despite common misconception, the European Union does indeed allow member states to decide their own rates of VAT on a number of categories of goods and services. In Albania, this policy remains yet a taboo and looks that the standard...
In principle, the efficiency of the VAT system is well-known through every country that apply this tax on consume. It is a in every time a good and neutral VAT system, the ones that changes consumers’ buying decisions as little...
The capitalization and/or forgiveness of loans by a shareholder to its wholly-owned subsidiary in Albania, generally qualifies as a shareholder contribution to the net equity of the subsidiary. When this is the case, the subsidiary does not register income in its...
To make comments on the subject it is needed to be answered to some questions. Firstly, higher taxes or lower taxes? What if a new business? The perception of Albanian citizens and businesses to a functional economy and fiscal system is largely...
Political patronage has been a time-honored feature of Albanian’s political system. In this regard we have to distinguish between “traditional clientelism” and “machine politics”, in which ‘the political loyalty and identification of voters benefits the party as such, rather than...
"Capitalism" and "free enterprise" are often equated. They should not be. "Free enterprise" is unfettered economic activity; it occurs where there is a free and open market for the production and barter of goods and services. Entrepreneurs (people who start businesses...
The comparison and analyse of data from INSTAT and Ministry of Finance about Monthly Household Per-Capita Income, Relative Tax Burden, Per Capita Consumption, and relative VAT Paid the result show that the VAT burden in the lowest income group is...
