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The Albanian government has proposed another "Fiscal Peace", which aims to forgive tax liabilities, fines and late interest for debts created more than 10 years ago and also forgive some tax liabilities less than 10 years old according to a formula that we have no information on how it was constructed!
This initiative is presented as a way to "restart business relations", but history and previous practices show that its effects are more negative than positive.
History of Tax Amnesty in Albania
Since 2009, Albania has implemented at least six fiscal forgiveness or amnesty measures in 2009, 2011, 2014, 2015, 2019, and repeated proposals in 2021, 2023, and now in 2025.
All of these measures have been taken during election periods, raising suspicions about their use as political tools for short-term gains.
For example, in 2009, as the country prepared for parliamentary elections, the legalization of undeclared capital was proposed.
In 2011, before local elections, fines and late payment interest were waived for taxpayers who paid the principal. This practice has been repeated continuously, making fiscal amnesty the norm, not the exception.
Negative Effects of Tax Amnesty
Repeated amnesties have had numerous negative impacts on the country's fiscal system. According to published data, over 40% of debts written off during the period 2015-2019 belonged to inactive entities or those operating informally.
This shows that the main beneficiaries were not active or genuinely struggling small businesses, but entities that had deliberately evaded the system. This has led to an erosion of tax morality, creating an expected behavior where fiscal correctness is seen as a burden that will be compensated for at a later point with an amnesty.
Moreover, these measures have damaged tax ethics and eroded the morale of regular taxpayers. Today, instead of correctness being the norm, delay and evasion are perceived as “smart strategies” that will sooner or later be rewarded with a pardon.
Compared to countries in the region, Albania stands out for the frequency and informality of these initiatives. Kosovo and North Macedonia , for example, have only applied one fiscal amnesty in a decade, closely linked to structural reforms and with clear conditions for increased transparency and administrative efficiency.
In Albania, "fiscal peace" has become a common tool to manage the consequences of the weakness of the tax administration and to avoid facing the real challenges of modernizing and digitalizing the tax system.
Unlike countries in the region that have occasionally applied limited amnesties for tax liabilities, in Albania there is a trend towards asset amnesties, which aim to legalize undeclared capital, creating a risk to legality and fiscal equality.
Beyond the moral and historical argument, there is also an educational problem. Frequent forgiveness translates into systemic fiscal miseducation . As is often mentioned in economic and psychological literature, “ 1 year of miseducation requires 10 years of education to return to zero .” In this sense, any thoughtless forgiveness not only does not solve a problem, but it embeds it deeper in the collective consciousness as the norm.
International Criticism and Money Laundering Risks
International organizations have expressed serious concerns about these measures. The International Monetary Fund (IMF) has stated that Albania does not meet the conditions for implementing the fiscal amnesty proposed by the government, stressing that the amnesty favors major tax evaders and could be considered a “get out of jail free” card for them. The IMF recommends changing the amnesty to a voluntary declaration program, which forces the payment of all taxes evaded over the years.
The European Union has also warned that the adoption of a tax and criminal amnesty against EU and Moneyval recommendations jeopardizes progress in the fight against money laundering and the fight against money laundering.
Conclusion: The Need for Fiscal Justice
In conclusion, such initiatives should not be seen as a “reconciliation” of relations with business, but as an institutional surrender in the face of informality that has been tolerated for decades. A fair tax system is not built on permanent amnesty, but on order, predictability, fiscal education and reliable administration and institutions.
Albania needs a pact for fiscal justice, not a unilateral "peace" that undermines the foundations of the rule of law and the market economy. After all, will those who have paid regularly and on time benefit from any bonus or reward for being correct?! And this is the very essence of the professional debate!/ Monitor
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