Dynamics and Place of the Personal Income Tax in Albanian Economy

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