Helping Albanian municipalities understand how new local property taxes will be determined

Speeches Shim

Thursday, September 20, 2018
Participants in Tetra Tech's Local Tax Workshop
Erald Lamja, Tetra Tech

TIRANA, ALBANIA     To assist local governments on how to implement the recently adopted value-based property tax system on buildings, USAID partner Tetra Tech, in cooperation with the Property Tax General Directorate of the Ministry of Finance and Economy (MoFE), conducted workshops on August 30 and September 6.

Officials from the Korça, Lushnja, Fier, Vlora, and Durres municipalities learned how to compare their existing property tax database of local buildings with the data from the Electricity Power Distribution System Operator (the entity expected to be assigned as the Government of Albania’s agent in collecting building taxes). MoFE experts explained how the new system can provide additional opportunities to improve local government finances, tax administration, and service delivery.

In addition to advice on administering the new property tax system, municipal officials discussed how to address challenges that are certain to arise with the first stage of implementing this new method of collecting building taxes. Officials from eight other municipalities will attend a similar workshop in September.

In addition to workshops with  municipal staff, Tetra Tech has initiated a series of workshops for new staff at the MoFE’s Property Tax General Directorate on local tax policy and issues including local fiscal autonomy and property tax collection and enforcement procedures.

Tetra Tech, through the USAID Planning and Local Governance Project (PLGP), provides technical assistance and on-the-job training to staff in 13 target municipalities and administrative units to improve tax collection; increase own-source revenues; to better manage assets; and to increase the predictability, accuracy, and transparency of budgetary processes through e-government solutions, and to increase citizen participation in local government decision-making.