ALBANIAN FISCAL SYSTEM EVALUATION THROUGH SOME ECONOMIC INDICATORS

Abstract

The Albanian government, elected during year 2013, has announced the new economic and fiscal program, as immediate measure for impacting economic growth and strengthening public finance. This program is based on fundamental reform of tax system, and tax administration, as a supplementary supporting package. The last system has been in force since 2008, which mostly was attributed the flat tax rate and some other fiscal facilities for different sectors of goods and services. The new regulatory fiscal reform which proposed and just approved, is based on progresive taxation rate for direct taxes (corporate and personal income taxation), maintaining the same Value Added Tax. Beyond any political assessment about which system is best for strengthening the public finance and economic growth improvement, this article aims to analyze which has been the impact of previous fiscal policy, that has been implemented on Albanian economy, and to make some assumptions whether if its “life†is over.