Flat Tax: The Case of Albania

Country without taxes and dues

In developing and implementing the tax policy towards the people, the Party of Labour of Albania was always aware that taxes are a temporary historical category. Therefore it prepared, step by step and with the utmost care, all the necessary conditions to abolish it. On November 8, 1969 very important measures were taken to eliminate the system of taxes and other direct charges for the population completely. This is because the area of the socialist relations of production had expanded and the productive forces of the country developed rapidly. The share of taxes and fees of the population in the income of the state budget was 92 percent in the fiscal year 1945-1946 (the first year of liberation), in 1950 it had fallen to 12.6 percent and to 2.7 percent in 1960; 1969 it was only 0.1 percent. 

The process in which the taxes and fees have been abolished for the people did not take place at once and not in an administrative process. The taxes were abolished gradually, while simultaneously the socialist sector of the economy developed and the class structure of the country changed. 

Article 31 of the Constitution states: “The citizens pay no taxes and fees.”

from Albanian Socialist Pamphlet

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