Consultation session with interest groups for the improvement of the draft income tax law

The Parliamentary Committee for Economy and Finance held a hearing today with Interest Groups regarding the identified need to further improve the draft law “On Income Tax” and its prospects.

Representatives from the Albanian Association of Banks, Institute of Certified Accountants, ALTAX and FinTech as well as representatives of the business community participated in this meeting with the members of the Economy and Finance Committee.

At the opening of the meeting, the Chairman of the Commission, Mr. Shalsi announced that the period for the discussions and transition to the plenary session of the draft law “On income tax” will be extended for the year 2023. This is thought to give additional breathing space and a necessary time to reflect on the concerns expressed earlier also through correspondence from interest groups.

In his presentation, the representative of the Association of Banks, Mr. Brumbulli emphasized not changing the current legal situation to influence “Bad debt reserves for financial institutions”. The presentation of the legal change creates the premises for a return in time in 2014 regarding the promotion of the creation of new bad debts, negatively affecting the performance of the financial market.

The representative of ICA emphasized the incorrect terminology related to the use of terms that are not recognized by the current legislation, such as: corporation, etc. These definitions in the definitions of the draft law create harmful negative effects for other laws that are affected by the changes harmful related to the tax on the free professions affecting aggravation of the situation of this category in the creation of inequalities in the market. It was also emphasized that the draft law needs to address differently the problems of recognition of interests as deductible expenses, together with another group of expenses beyond the provision presented by the draft law. Meanwhile, the concerns of certified accountants regarding informality in the market, counting the professional as an employee and not considering the market create premises for avoidance and evasion.

Meanwhile, it was rightly emphasized that the legal initiative cannot correct the mistakes of fiscal administration through legal changes, as this has been proven by the past implementation practices that have turned out to be unnecessary and harmful to fiscal education.

From the representative of ALTAX, Mr. Gjokutaj were expressed in defense and the same position as those mentioned by the representatives of the interest groups, focusing specifically on the need for the draft law to have a more structured attention regarding individuals, where the tax declaration for married couples (family) and the need for adaptation to the EU is important in this regard, to avoid frequent changes in the future.

On the other hand, a moment assessed as disturbing is the tatami on capital, which in its designation in the draft law, as one on investment makes the difference in relation to a different approach to treatment. Attention in this direction gave the argument that the tax on capital and the need to balance it with the tax on labor is significant.

You can read it in full at the link About some moments for reflection on the income tax law project (Alb.)

The members of the commission also expressed their interest in having as many professional discussions as possible, addressing various clarifying questions to the experts representing the interest groups.

Also mentioned was the need for special clauses as a relief valve for tax relief in case of increased inflation, natural disasters, etc.