Abstract:
Flat taxation or progressive taxation, is an ongoing debate in society of Albania. In Albania, over a decade, there have been imposed 2 types of taxation: Flat tax (2008-2013) and progressive tax (2014-ongoing). Each tax has its own advantages and disadvantages. The main objective of this paper is to show which tax has had the best performance in economic growth. To make this paper are collected data from INSTAT, Eurostat, Ministry of Finance of Albania, Bank of Albania, World Banka and other resources and then are created tables. Based on those tables it had been performed a comparative analysis of two fiscal systems, focused on a period of eleven years. Besides the comparative analysis another analysis is made and this is ANOVA (Analysis of Variance) and Independent Sample t-test. The study results show that the best fiscal system for Albanian economy is Progressive tax system. The Real GDP of the country was increased with 2.6%. The growth of the GDP has been affected form the increase of other indicators like tax budget revenues that had 3% increase and other indicators. The implication of the new tax increased the income of the revenues and reduced the public debt that Albania has had over the years. This implementation of the new tax had also negative side. Albania companies still till now make fraud and tax evasion by because they still use double accountings in their business. Further research is recommended to decide because 10 years doesn’t define the best fiscal tax when the new fiscal system continues. To conclude a complete research, need more time, information and indicators, because the results change continuously.