A Special Unity tasked with tackling informality in employment and service income has been set up in accordance with the Prime Minister’s order in order to increase the self-declaration of real wages by conducting proper information cross-checking, as well as risk criteria based on wage and tax evasion in certain sectors. In January 2022, the Special Unit focused on analyzing the reaction from the taxpayers, with risk and information cross-checking with third parties serving as the criteria to pick the taxpayers and the individuals to undergo tax administration controls.

To discuss the Unit’s performance and take stock of the businesses positively reacting by reflecting the changes to the workers’ wages, Prime Minister Edi Rama held an extended meeting with businesses and individuals involved in this process.

The government head said that the renewed appeal to businesses to review the situation and tackle wage evasion and informality has yielded significant results.

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You all bear in mind the fact, as I guess nobody has forgotten the public effect of the data leak that exposed the personal and salary-related information, which in addition to its negative side had a significant positive aspect too, because the whole public opinion learned about a reality, which despite adjustments over the years, was indeed a reflection of a major distortion of which we have been and are all aware of. And as we already announced, a Special Anti-Informality Unit has been set up to carry out a detailed control process and provide us with a whole picture of the overall situation.

Around 25 % of the employees in the Republic of Albania have transitioned from a minimum wage rate to a higher wage rate, which means that they used to receive much higher salaries than the previously declared minimum monthly salary.

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First of all, the inspection actions conducted by the Special Unit were primarily designed to shed light –and they did so – not only into the problems marring one or two controlled companies in every sector, but the whole sector, because the methodology is such that it provides information on the sector as a whole, not just on certain companies. Time is now for the high earners to definitely contribute more so that the weight of this specific burden is shared as fairly as possible.

Moreover, it is a time when all businesses should definitely take a step further to formalize the relationship with their employees, to formalize their salaries so that these employees are not denied their pension rights when they retire.

We will embark on a very intense work on the contracts, a process already launched by the Minister with certain specific cases and on which we are working to support employees but also to help employers sign contracts that guarantee both parties. It is very significant that 20% plus of total employees, who have their salary now increased as a result of this correction, while the average monthly wage has increased by around 10,000 lek.

The other element is that we will soon move another policy forward in terms of low-income individuals and families currently under the government’s social welfare scheme, but who are healthy and physically fit to work and this is a policy that will certainly require close cooperation with the business community and will rely heavily on business partnerships.

Nowhere else in the region, let alone in Europe, is applied a zero tax policy on small businesses as it is the case in Albania. Just like nowhere else in Europe or in the region is applied a zero VAT rate on small businesses as it is the case in Albania!

On the other hand, the tax burden on big business is indeed the heaviest in the region. We have increased the tax burden on big businesses being fully aware that this is the right thing to do, yet the tax rate is not higher than 15% and it is a reasonable tax level. We have clearly stated since the very beginning – and we are delivering on it – that we will increase no taxes and everyone should do their part, because otherwise it won’t work.