Tatimi mbi biznesin e vogël dhe kapacitetet financiare të njësive vendore në Shqipëri
Small business tax and financial capacities of local units in Albania

Summary/Abstract: Local government revenues are decreasing. At the end of 2012 LGU revenues reach at only 2.0% of GDP compare to 3.1% and 2.6% that were respectively in 2009 and 2010. The contribution of Local Government Revenues also shrinked as share to overall state budget reaching at only 8.8% at the end of 2011 compare to 11.9 and 9.8% respectively during 2009 and 2010. These indicates only the general situation with regard to local government financial capacities, while the strong debate between main political parties before national elections of last summer 2013 with regard to small business tax and it contribution to local government revenues is very questionable because of the specific nature of this fiscal burden in Albanian context and legislation. Aim of the paper: To give an idea of local government financial capacities and small business tax problematic in Albania. Methodology: the article is based on local fiscal legislation and financial data on local government in Albania. The LGUs data are taken from consolidated budget of the Treasury System for period 2005- 2012. The study is based on the author experience in LGUs financial issues and is pure interpretation of the Albanian context of small business tax and fiscal instruments for LGUs. Hypothesis: the small business tax is a typically an Albanian fiscal instrument used to increase financial capacities of LGUs in conditions when no national shared taxes were used. Since this is part of the income tax implies that small businesses to be subject of control of two fiscal administrations (central and local ones). It is advisable to amend this instrument in order to harmonize the national fiscal system and became comparable with other countries. Expected results: To give guidance into the actual context of the Albanian legal framework and financial capacities of local government units focusing on a deep analysis of the problematic related to the small business tax.

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