ALTAX, a research and analytical center for fiscal and economic issues in Albania and the region, has published its 14th report on Tax Burden 2025 and Fiscal Freedom Day 2026 for the Western Balkan countries, emphasizing that the main challenge is not only related to the level of taxes, but to the structure and fairness of the fiscal system, which continues to exert unbalanced pressure on citizens and businesses.
For Albania, the report estimates that the tax burden remains at average levels in relation to the region, but its distribution is problematic. The system relies mainly on taxes on consumption and social contributions, creating higher pressure on labor and consumers.
According to the analysis, this structure affects the way the tax burden is distributed among different categories of taxpayers and has an impact on the formalization of the economy and social equality.
The report also highlights the concentration of tax revenues, with most of them generated by Tirana and large taxpayers, while other regions remain more dependent on budget transfers.
In this context, ALTAX recommends a package of reforms aimed at increasing efficiency, transparency and fairness in the fiscal system. These include easing the burden on labor and reviewing the VAT structure.
In conclusion, the report emphasizes that improving the taxation structure is essential to support economic development, formalization, and a more balanced distribution of the tax burden in Albania.
