Tax revenues still low from small businesses

TIRANA, May.15- A report on the economic performance of Albania in 2006 has shed some light upon the failure of the government to collect the correct amount of taxes from small businesses. A 31 percent decline in these revenues for 2006 has proven wrong the Finance Minister’s claim that a low tax level will increase the revenues because of higher collection rates. The fixed tax on profits to small businesses realized 30 percent less revenues than planned. The tax base has been left unaffected by the incentives of lower tax rates, evidence that informality is well rooted in the gray economy area. The contribution of small businesses to tax revenues has been estimated at an absurd 0.3 percent. Albania collected 25.742 billion leks ($ 277.96 million) in net tax revenue in the first four months of the current year, data released on Monday by the general tax office showed.