FISCAL REFORM AND TRADE LIBERALIZATION PROCESS
Abstract
The main objective of this paper is analyzing the impact of trade liberalization on fiscal balance in Albania. A strategy that is broadly used in literature is combination of reduction in custom tariffs as a consequence of tradeliberalization with an increase of consumption taxes, basically the increase of VAT and the increase in excise rate of imports. The main findings are that reduction of custom taxes in not being reflected in total fiscal income.This means that tax reform in Albania has been successful in having sound fiscal incomes during the trade liberalization process. An important contribution related to this performance has been played by VAT reform, andchanges of excise duties.References
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