The Municipality of Tirana has drafted the mid-term budget program for the period 2019-2021.
According to the report, which is expected to be discussed at the next meeting of the City Council, revenues that will collect itself
The municipality is expected to reach ALL 13.4 billion (or about EUR 105 million). With a 3% increase in relation to 2018 expectations.
Along with the unconditional funding it receives from the central government, the available municipal budget is expected to reach
All 18.3 billion, or 145 million euros, reaching a historic record level.
Even for the period 2020-2021, the Municipality's own revenues are expected to remain at the same levels (around ALL 13.4 billion)
while government funding is expected to decline, which will cause the total budget to fall to ALL 16.4 billion by 2020, or 10% less than in 2019.
The three taxes and fees that are expected to bring more revenue to the Municipality's budget are the infrastructure impact tax (30%), the building (17%) and cleaning fees (15%).
The new building tax, families will pay four times more by 2021
For the category of buildings used for housing, according to the instructions of the Ministry of Finance and Economy,
the application of the fee based on the value based system will begin in January 2019.
According to the report, for the Municipality of Tirana will continue to be the Local Tax Directorate, the structure that will charge the obligation
of this tax by entities performing economic activity in the territory of the Municipality of Tirana, while for the household category obligations
will be selected by the Tax Agent within December 2018, through a special decision for this purpose.
In 2019, building property tax revenues are projected at ALL 2.4 billion, from ALL 1.78 billion, which is the expectation
for 2018, with a 34% increase. After the infrastructure fee, this is the second voice that generates more revenue in the budget, with about 18% of the total.
The most sensitive growth is forecast for households, from 220 million lek, expected to be collected in 2018, to 510 million lek in 2019.
Even in the next few years, the bill will be more and more expensive, as the income from this tax is expected to reach
900 million lek in 2021, with an increase more than 4 times, in relation to what is expected to pay by the end of this year.
In fact, the Municipality predicted to collect 510 million ALL from family members in 2018, as the new formula for calculating the tax on
the basis of value came into force in March but could not be enforced due to technical problems (the agent to be recruited
and determining the value of buildings in the absence of a fiscal cadastre).
According to the report, with the latest legal amendments, dated April 1, 2018, the building tax has received another rating,
to the value of housing. The tax rate, expressed in percentage, as for the buildings used for housing at 0.05% for buildings
used for economic activity at 0.2%, is applied to the value of the building (multiplied by price).
To this end, the Ministry of Finance and Economy, through the General Taxation Directorate of Assets, in cooperation
with other central institutions such as OSHEE, General Directorate of Civil Status, IPRO, etc, is in the process of finalizing
database building, establishment of Fiscal Cadastre, as the basic information necessary for the calculation and collection
of the building tax revenue.
LGUs will be charged with updating the data reflected in the fiscal cadastre program as well as with the loading
of new data on the basis of self-declaration of citizens, or with the verification and accuracy of field information
and accurate coverage of the fiscal cadastre program.
For their part, the LGUs have begun to be organized, on the way of administering the building tax, under conditions not set
the selection of OSHEE as a tax agent for all LGUs, a process that should be finalized by 2018,
so that starting from January 2019 it is possible to apply and collect the building tax in accordance with the legal changes
