IMF Advice: VAT Tax Penalizes Small Business
Albanian Daily News
Published October 16, 2017
The Internationally Monetary Fund (IMF) does not totally agree with the government’s new proposal for the involvement of the small business in the Value Added Tax (VAT) regime starting from January 2018. During the last mission in Albania, IMF evaluated that the design of VAT taxation on small businesses should consider a simplified regime aimed to minimize the burden on tax administration.
This institution underlines that tax administration has made positive progress in implementing its strategic plan, but the mission supports its focus on improving debt collection processes and compliance risk management.
“The announced merger of the tax and customs administrations should be revisited, given the high risks of undermining revenue collection and the ongoing tax administration reforms. More generally, the reorganization of central government administration should be implemented with due consideration of its functional impact,” underlines IMF.