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The property tax fills the coffers of municipalities. Record income, about 51 million euros for 7 months

2024-08-26 12:23:46Biznes SHKRUAR NGA REDAKSIA VOX

The property tax fills the coffers of municipalities. Record income, about 51

The need for more revenue and the need to pay off the stock of arrears has led municipalities to pay more attention to building tax collection.

The official data of the Ministry of Finance for the 7-month period January-July show that the income from this tax has reached the record level of the last 10 years, since 2014, being recorded at 5.1 billion ALL or 51 million euros.

Compared to the same period of a year ago, the income increased by 1.4 billion ALL or about 37.9% more.

On the other hand, there is an overshoot in relation to the plan for this period with 2 billion euros or an increase of 66.7%.

In other words, in 7 months, 89% of the entire annual plan for the collection of this tax has been realized, where in total 5.7 billion ALL is expected to be collected.

Real estate tax revenues and transactions made with them have followed an upward trend over the years, and it seems that this year has a much higher momentum.

This performance was influenced by the increase in the number of building permits granted and construction areas, the development that this sector received mainly in coastal areas, as well as the increase in the number of transactions. Tirana Municipality has the greatest weight in the collection of this tax, followed by municipalities in coastal areas and other large units.

About 5 years after the reform of the property tax (building tax), the problems related to property rights and the lack of cadastral registers, have prevented the full use of its potential.

In the last three years, the income from this tax is estimated at an average of 0.3% of the nominal GDP, this ratio is significantly lower compared to the average of the countries of the Southeast European region, which is about 0.6% of the GDP.


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