Abstract
This paper will address the role and importance of fiscal policy in the Albanian economy during the transition period. Fiscal policies implemented during this period were different, depending on the programs of political parties that have governed. Generally, the analysis is focused on the PIT indicator (Personal Income Tax). Analyze the dynamics of income from PIT by these indicators; PIT revenues for ALL (leks) of GDP, income from PIT for ALL income tax, income from PIT for ALL income from taxes and customs etc. According years are reflected decisions and rate of change of the structure of PIT. It is analyzing the dynamics and the degree of relatedness between PIT and GDP (in percentage and in absolute figure). The aim is to analyze the degree of relatedness between PIT and GDP, so that in the future Fiscal Policy (PIT) affect more in the growth of GDP. Conclusions that have emerged from this analysis are: PIT is the tax that has changed more than any other tax, 9 times, almost every 2.8 years. There is strong correlative link between her and the dynamics of GDP in percentage and in absolute figure. This is because PIT is reflected in G (government purchases), and G is part of GDP. It is recommended not to change often the PIT rate, because frequent changes have a negative impact on the performance of revenue collection. In this paper, they used methods description, comparison, analysis, synthesis, statistics etc. DOI: 10.5901/ajis.2016.v5n3p25
Highlights
Albania for a period of 45 years has been State of the proletarian dictatorship
There were no concepts for taxes and fees, etc. This type of system and organization failed in Albania, as in all East
PIT set and implemented as a progressive tax. This progressive tax, in our opinion, had not applied since the beginning of reform, because people were introduced to the market economy, income and almost equal wages
Summary
Albania for a period of 45 years has been State of the proletarian dictatorship. There was no private property. - they should be approved new legislative packages that adapt to the new form of property, etc., etc In this context, great importance to receive the approval of the legal framework of Taxation. Albanian Government in drafting laws in general, and in particular the fiscal system, relied on western European legislation This action, regardless of rate changes over the years, show that it was vital. PIT set and implemented as a progressive tax This progressive tax, in our opinion, had not applied since the beginning of reform, because people were introduced to the market economy, income and almost equal wages. In this time period should apply Flat Tax. When the society was divided by income groups with low income, middle income, high income, tax should be applied progressively. Given PIT dynamics of laws by the time of the change
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