IMF Welcomes Albania's Tax Reforms

by Mary Swire, Tax-News.com, Hong Kong

14 June 2016

The International Monetary Fund (IMF) has welcomed Albania's plans to achieve fiscal consolidation through tax increases, and urged the Government to see through its fiscal reforms.

In its latest review of Albanian policies, the IMF praised the Government on its efforts to tackle tax evasion and reduce the size of the informal economy. However, the Fund urged the Government to accelerate certain tax reforms, including the implementation of a value-based property tax.

The IMF also called on Albania to broaden its tax base, limit tax exemptions, and strengthen revenue administration.

However, the IMF said that it "supported the authorities' plans to focus fiscal adjustment efforts on the revenue side, given the relatively low level of public spending."

"Directors emphasized the need for persistence in implementing structural fiscal reforms to reduce fiscal risks," it added.

TAGS: tax | property tax | International Monetary Fund (IMF) | Albania | tax reform