Albanian tax system: İssues and recommended solutions

The Republic of Albania, which has an important place and location among the Balkan countries, has gone through important turns towards achieving a stable economic performance. Taxes in fulfilling the objectives of the public economy are among the most basic policy instruments. In addition, with the adoption of the 1976 Constitution, private property was eliminated and the state emphasized that Albania is the only tax -free country in the world with the system it established. Many structural changes and arrangements have been made since those years and the latest situation has been evaluated within this framework. In Albania, approximately 71.5 %of budget revenues are obtained from taxes, while 21.7 %consists of social contributions. Indirect tax revenues make up approximately 45 %of tax revenues. In this thesis, the role and effect of taxes in ensuring economic growth for Albania, the tax system was economically analyzed and emphasized that foreign direct investments are important for the national economy.