
Tax revenues collected on a national scale by local governments for the months of January-September 2023 are 3.6% less than the same period last year.
In total, according to the data provided in the 2024 draft budget, tax revenues amount to ALL 21.3 billion. Compared to the same period last year, the local government's own local income is about 792 million ALL less.
From the analysis of fiscal indicators according to the Ministry of Finance, collections have fallen for some local taxes and fees, such as "tax on the impact on infrastructure from new constructions", "Tax on buildings" "Tax on transactions carried out with real estate" or "Cleaning and hygiene fees".
The income from the building tax for the 9th month of 2023 is about ALL 4.6 billion. Compared to the same period last year, receipts decreased by 398 million ALL or 7.9% less. For Tirana, from August 2023, the new obligation for households and businesses for the building tax began to be implemented, after the decision to increase the reference prices came into effect at the end of July.
Income from local taxes accounts for the largest share of income for local units. Revenues from local taxes have consolidated the growing trend from year to year after the administrative-territorial reform, but for the 9th month of 2023 these taxes have been collected in the amount of 16.7 billion ALL. Compared to last year, the income has decreased by 2.2% or about 383 million lek less.
In this group of taxes, most of them are "infrastructure impact tax from new constructions". According to the data of the 9th month of 2023, it can be observed that there is a significant decrease, especially in the municipality of Tirana, where there are about 1,342 million less realization from the "infrastructure impact tax from new constructions" compared to the 9th month of 2022. In relation to the budget it is argued that this decrease in income from this source is also a consequence of the decrease in new investments in construction in this period, compared to a year ago.
The simplified tax on small business profit after the legal fiscal changes has become zero (law no. 112/2020 "On some changes in law no. 9632, dated 30.10.2006, "On the local tax system", amended") . This fiscal relief that was approved by the central budget was compensated to the local government in the increase in transfers from the central government.
From the actual realization during the 9th month of 2023, it results that only 46 million ALL have been collected from this item, which is only 0.2% of the local revenues in the 9th month of 2023, which represent obligations paid late. Some of the local self-government units collect obligations from this source for those entities that have not made payments within the deadline and are debtors.
Another important source of local own income that is directly related to the activity of the local government is non-tax income. According to the draft budget report, for the 9th month of 2023, local self-government units on a national scale have collected non-tax revenues in the amount of over 2.2 billion ALL, this figure is almost the same as the value of revenues collected during the same period of the year. 2022.