SEEU Review vol. 6 Nr. 2 (pdf) - South East European University

Haderi S., Prof. Dr.; Kola T., Prof. Asocc. Dr.; Liko E., Dr.for airplanes flying and for leasing services, in the same year were excludedfrom VAT subcontracts and some services related to merchandise.Excise tax has an important contribution in total tax revenue. Thelegislation for excise in Albania has been subject of frequent changes. LawNo. 8717 date 15 December 2000, implement tax from tobacco and alcoholicdrinks, in year 2004 are made some changes in law No. 8976 date 12December 2002, has decided the increase of oil excise from 50% to 65%. Inyear 2005 there was a further increase in group of alcoholic drinks andperfumes from 100 lek/liter to 130lek/liter. In year 2006 with president ofthe republic act No. 5018 have been increased the excise rate for cafe with10 lek/liter, alcoholic drinks with 20 lek/liter and tobacco with 15 lek/packet.Further increases in excise tax have been present in the fiscal package in2007, 2008, for alcoholic drinks such as vein, and bier an increase of about30lek/liter from the present level, for alcoholic drinks with alcoholic powerrelative to their volume above 12% the increase is 40 lek/liter and 20 lek/literfor the alcoholic drinks with alcoholic power to their volume less than 12%.For malto bier importer and domestic producers in an amount more than200,000 hectoliter the increase is about 10 lek/liter. In this year is increasedwith about 4 lek/liter the excise of the fuel.Both VAT and excise taxes have had a positive impact on total fiscalrevenues. Adjustment of excise in year 2006 has had a small positive impacton budget revenues generated from this tax. It is noticed a significantpositive impact of broadening VAT base in year 2005, in total incomegenerated from this tax after this year. Both these taxes have contributedpositively in generating fiscal revenues and managed to offset the negativeimpact of tariff reduction after starting trade liberalization process.Table 1: Tax revenue percentage breakdown in Albania for the period2000 -20082000 2001 2002 2003 2004 2005 2006 2007 2008VAT 36.61 35.42 35.76 35.47 35.06 35.09 36.16 38.48 40.11CIT 7.79 8.82 9.46 8.45 9.82 10.45 10.85 9.25 6.90Excise tax 8.79 8.22 7.23 7.54 9.52 10.06 11.19 12.58 12.91Small businesstax1.57 1.69 1.97 1.98 2.47 2.07 1.27 0.96 1.13138