Proceedings of the 1st Business & Management Conference, Vienna

VAT, A TAX WITH GREAT IMPACT ON STATE REVENUES IN ALBANIA

KLAUDETA MEROLLARI

Abstract:

In an economy in transition that is moving toward a market economy, a question is raised: Will the tax policy reflect the changes? The answer of this question lies in an issue of vital importance for the future of the country that is the attraction of foreign investments, in a time when tax competition is increasing in the regional and global level. The development and prosperity of a country is closely related to the increasing number of investments and economic activities, and besides economic formulas should be taken in consideration also the importance of sensitivity of all collection and contributing tax structures. In this context, we don’t have to forget the very important issue of having not only a modern tax policy but also a modern tax administration. In the modern world the key to success is communication between politics and business, directly and indirectly, as a quite diplomatic process. In theoretical analysis of tax policy one of the requirements that is strongly supported by the IMF is the sustainability of the tax system which means no changes in tax laws. Tax sustainability is affected by the legal framework in order that tax administration consistently applies the tax legislation and its regulations. It should publish information on how to interpret and implement this legislation.

Keywords: tax system, tax policy, fiscal indicators, state revenues, value added tax

DOI: 10.20472/BMC.2015.001.013

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