Total budget revenues appear to have an upward trend year after year, with the exception of the last two years, in which we have an annual decline of 0.5 %. Compared to 2011, 2013 marked a decline in the amount of 1.824 billion. In 2011 there were collected more budget incomes than in any other year taken under consideration, an amount totaling 330.46 billion ALL. Incomes received from grants fluctuate widely over the years, where the greatest revenues are recorded in 2001 and the lowest are recorded in 2007.
The highest value of the Income Tax collected over the years was reached in 2011, value that amounted to 303.92 billion ALL. Non – Tax revenues have raised and declined over the years without following a certain upward or downward trend. The highest value of revenue, 31.55 billion ALL, was recorded in 2010, while the lowest value of 14.178 billion ALL was recorded in 2005.
Source: Ministry of Finance
Coments and Analyses: ODA
In 2013 there were 328.62 billion ALL budget revenues, of which 5.665 billion ALL came from grants, 301.40 ALL billion from income tax and 21.554 billion ALL from non-tax incomes. Income Tax occupies the largest share of revenues at 91.7%, 6.6% is occupied by non-tax incomes and 1.7% by grants.
Source: Ministry of Finance
Coments and Analyses: ODA
Income Tax is the item with greater weight in the budget revenues and as such it represents particular interest. The average weight of the Income Tax during these years reaches about 88% of total revenue. Income Tax itself is categorized into three main groups of incomes that are: incomes from taxes and customs, local government incomes and incomes from special funds.
Source: Ministry of Finance
Coments and Analyses: ODA
Tax and customs incomes are collected from all types of taxes applied by the Central Government. These include six main categories: Value Added Tax, Income Tax, Excise, Personal Income Tax, Customs duties and other National taxes. Each of the above categories is regulated by a special law. Income from taxes and customs have come upward until 2011, where the highest value of revenues was realized at the amount of 235.50 billion ALL, while the last two years such income has declined. Incomes from taxes and customs have occupied an average percentage of about 76% of revenues over these years.
Specifically, revenues from VAT constitute almost half of the revenue from taxes and customs. These revenues have increased until 2011, which coincides with the year in which there were higher revenues recorded from this item with about 119.18 billion ALL. In the past two years a downtrend is present. Income tax shows a steady rise until 2006, the year in which the highest revenues were realized with about 22.25 billion ALL. After this year, revenues from income tax have been declining, except for an improvement in 2011.
Excise revenues have increased year after year until the year 2011, where the highest revenues were recorded by about 40.403 billion ALL. After this year, these revenues have been declining. Personal income tax seems to be an item with a continuously stable increase. The highest incomes were realized in the last year with a value of about 29.570 billion ALL. The same trend is also presented from the national tax incomes. The highest revenues were realized in 2012 with a value of about 28.67 billion ALL, but the decline in 2013 reached a very low level. Incomes from customs duties have slightly increased until 2006, the year in which the highest income from this item was realized by about 13.99 billion ALL. After this year, these incomes are in steady decline.
Regarding 2013, the largest share of incomes from taxes and customs was the income from VAT by about 49%, then the incomes from excise by 17%, revenue from personal income tax by 13 % national income tax by 12%, revenue from income tax to 7% and revenue from customs duties with only 2%.
Source: Ministry of Finance
Coments and Analyses: ODA
Source: Ministry of Finance
Coments and Analyses: ODA
Local government revenues are revenues that are collected and administered by local governments. These include income, property tax, small business tax and other local taxes, regulated by Law no. 9632 dated 30.10.2006. Starting from 1 January 2014 the law has undergone several changes related to income tax from small business, where what is worth mentioning is the fact that small business tax now called “simplified income tax for small business” shall be assessed, collected, controlled, gathered and transferred to the accounts of the local government budget by the General Directorate of Taxes through its regional departments. (Law no. 181/2013)
Local government revenues account for about 4.5% of tax revenues or 4% of total revenues. These revenues have been increasing until 2009, year in which the highest value of revenues was realized of about 12.14 billion ALL. After this year, local government revenues have been declining. For 2013, 59% of local government revenue came from income tax for small business, 23% from local taxes and the rest of 18% from tax on property (buildings).
Source: Ministry of Finance
Coments and Analyses: ODA
Source: Ministry of Finance
Coments and Analyses: ODA
Incomes from special funds include incomes from social insurances and health contributions, and also incomes from value compensation of owners. The incomes from these funds constitute about 19% of tax revenue. These revenues have been steadily increasing and in 2013 the highest revenues worth 60.03 billion ALL were realized.
Source: Ministry of Finance
Coments and Analyses: ODA
Non-tax revenues are revenues that come from economic activity of public enterprises and public property, administrative services and secondary income. This includes items such as the profit of the Bank of Albania, the revenue from the economic activity of budgetary institutions, income from dividends, income from fees of administrative services, national and local and other incomes where we can mention fines, interest on arrears, seizures etc. These revenues represent about 9.3% of total revenues. Over the years they constantly fluctuate, and in 2010 the highest value of revenues of about 31.55 billion ALL was realized.
Source: Ministry of Finance
Coments and Analyses: ODA
Contributed by: Ina Baja