TIRANA, Aug. 6 – The opposition Democratic Party has described the poor performance in tax collection in the first half of this year as “a spectacular failure,” saying that higher taxes failed to bring higher income.
“There is 134 million dollars missing in the state budget, which means missing investments, roads, schools water supply systems,” said Edmond Spaho, an MP and deputy head of the opposition Democratic Party, accusing the government of corruption.
The opposition says reducing taxes and a fair tax and customs administration is the key to this situation.
The Democrats say they will introduce a 9 percent flat tax, the lowest in the region when they come to power. Albania is currently applying a flat tax of 15 percent on corporate income and withholding tax on dividends, rents and capital gains compared to a flat tax of 10 percent before 2014.
In a post on his Facebook account, opposition leader Lulzim Basha made even harsher accusations saying that the missing money had ended into the pockets of government officials.
Basha said the government had cut wages and pensions and investments in schools, roads, water supply systems and agriculture under the budget cuts.
