Former Director of Taxes Reveals Concerning Figure of Informality

After the concern raised by the business itself, the experts have given the alarm regarding the situation created in the country by informality. Former director of taxes Artur Papajani emphasizes that recently while we are prior to elections, there is a growth in informality that reaches 60% of the economy and requires immediate measures. 

"Trends are increasing informality, the figures fluctuate up to 60%, so it is something that the Albanian economy requires incentives and the biggest stimulus against informality is to make business as close as possible to the law, and the policy of high taxes, simply taking the case of the progressive tax by hitting those who earn more and privileging another layer, this is not appropriate for the situation," he said. 

Numerous controls by inspectorates on businesses, both foreign and domestic, remain a concern. According to Papajani, this further damages the business climate, especially in these times of pandemics. 

"In case your business removes all taxes and confronts the inspectorates, this is only an increase in costs and hidden taxes, but in another form, they damage the climate of doing business," he said. 

International financial institutions such as the International Monetary Fund or the World Bank have also raised as a concern the state of the informality of the economy in Albania.