Mimoza Zeneli – Business University Collage of Albania, Rruga Vangjel Noti, Tirana, Albania

Almarin Frakulli – Metropolitan University of Tirana, Rruga Sotir Kolea, Tirana, Albania

Keywords:                    Progressive tax;
Flat tax;
Fiscal legislation;

DOI: https://doi.org/10.31410/ERAZ.2023.37

Abstract: A progressive and flat tax system is widely debated not only in public finance but usually as a political issue in Albania. A progressive tax has been applied in Albania in recent years. Many researchers in Albania have studied the effect of the flat and progressive tax on public finances, but what we will bring in this paper is the point of view with which small and medium businesses in Albania consider the effect of the tax on the in­come of their companies.

Based on the results of the survey of Structural Statistics, for the year 2021, 99.8% of active enterprises are SMEs. This important fact intrigued us to study the effect of taxes on SME income as well as their opinion on each tax. In order to see the effect of the tax system, the analysis of the data collect­ed from 200 SMEs (through questionnaires) for the main indicators such as progressive taxation, and simplified tax on small business was carried out. The descriptive analysis of the data collected as well as the confidence inter­val estimation for the VAT rate preferred, are going to generate some con­clusions and recommendations for policymakers.

9th International Scientific ERAZ Conference – ERAZ 2023 – Conference Proceedings: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, hybrid – online, virtually and in person, Prague, Czech Republic, June 1, 2023

ERAZ Conference Proceedings published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Logistics, University of Maribor, Maribor (Slovenia); University of National and World Economy – UNWE, Sofia (Bulgaria); Center for Political Research and Documentation (KEPET), Research Laboratory of the Department of Political Science of University of Crete (Greece); Institute of Public Finance – Zagreb (Croatia); Faculty of Tourism and Hospitality Ohrid, University of St. Kliment Ohridski from Bitola (North Macedonia)

ERAZ Conference 2023 Conference Proceedings: ISBN 978-86-80194-72-1, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

Suggested citation

Zeneli, M., & Frakulli, A. (2023). Small and Medium-Sized Businesses in Albania Prefer Progressive Tax or Flat Tax. In V. Bevanda (Ed.), ERAZ Conference – Knowlegde Based Sustainable Development: Vol 9. Conference Proceedings (pp. 37-42). Association of Economists and Managers of the Balkans. https://doi.org/10.31410/ERAZ.2023.37


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