Municipalities are supported by construction, 63% of revenue in 2023 from infrastructure tax

2024-05-21 09:52:00, Ekonomi CNA

Municipalities are supported by construction, 63% of revenue in 2023 from

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Even throughout 2023, the main weight of the income collected from the taxes of the 61 municipalities in the country continues to be the tax on the impact on the infrastructure.

About 63% of the weight for the item of income from taxes and local government taxes was maintained by the infrastructure impact tax, according to the data of the report of the Institute of Municipalities of Albania, against the weight of 55% that it took in 2022.

In total, the income of 61 municipalities from their own resources (including local taxes and fees, and other local income) for 2023 reached 350 million euros. Compared to 2022, revenues increased by 11%.

There were more collections for 2023 from the infrastructure impact tax, which reached the value of 13 billion ALL for 2023. Compared to 2022, the income from this tax increased by 28.3%.

The municipality that collects the most revenue from the infrastructure impact tax remains Tirana, which accounts for 72.2% of the total receipts from this tax for the country's 61 municipalities, followed by Kamza (8.4%), Kavaja (2.9%), Durrës. (2.8%), Himara (2.3%), Saranda (2.2%) and Vlora (2.1%).

The positive performance observed throughout the year 2023 for the collection of this tax is mostly attributed to the Municipalities of Tirana (+2 billion ALL), Kamëz (+621.4 million ALL), Kavajë (+219.5 million ALL), Lezhë (+101.5 million ALL) and Saranda (96.3 million ALL).

Meanwhile, a number of municipalities such as Vlorë municipality (-88.6 million ALL), Himarë municipality (-54.6 million ALL) and Fier municipality (-34.9 million ALL) have performed poorly compared to the same period last year.

"This can be explained by the fact that the income from this tax depends exclusively on the request for a building permit as well as on their approval by the LGU, which makes this tax not very predictable and therefore of a regular", the report is quoted.

As for the collection of income from the building tax, receipts increased by 4.4% compared to 2022. For 2023, the municipalities collected 4.7 billion ALL from the building tax. Tirana Municipality collects more than half of the total followed by Durrës (6.3%), Elbasan (3.7%), Fieri (3.4%), Vlora (3.1%), Roskoveci (2.6%), Korça (2.5%), Vora (2.4 %), Saranda (2.3% and Kamza with 2%).

From the collected data it appears that 35 municipalities have performed positively in the collection of the building tax, where Tirana municipality (+141 million ALL), Durrës municipality (+47.3 million ALL), Fier municipality (+22.1 million ALL), Roskovec municipality stand out. (20.3 million ALL) and Lushnjë municipality (+11.7 million ALL). In relative terms, it is worth mentioning the municipality of Tepelën (+75.3%) and the municipality of Peqin (+51.5%), which have experienced a significant increase in income from this tax, compared to last year.

While there are 26 municipalities which result in negative performance, where Vlorë municipality (-47.1 million ALL), Kavajë municipality (-19.7 million ALL) and Krujë municipality (-13.3 million ALL) stand out.

So the income from taxes and small business taxes collected by the municipalities continues to be down 25% compared to the previous year. For 2022, receipts from taxes and small business taxes decreased by 77.3% compared to 2021.

Receipts from the hotel tax for the 61 municipalities increased 40.6% for 2023 compared to 2022. While the receipts from the table tax fell 1.9%./ Monitor