The level of debt owed by business to the tax administration at the close of year 2017 has come to a total 95.5 billion lek.

The General Directorate of Taxation's data shows that, despite the fact that compared to 2016 debt has decreased by 35% or by about 51.6 billion lek, the debt level is still considered worrisome.

According to the annual report of the General Directorate of Taxation, debt which accumulated more than two years ago accounts for almost half of the total debt amount owing, to the value of 45.5billion Lek.

The main portion of tax debt results from VAT, representing 36% of the debt, followed by Income Tax at 28%, Social & Health Insurance at 12% and TAP at 2%.

The level of debt arising from taxes further depicts shows the difficulties that businesses face in our country, and the inability to settle obligations to the tax administration.

To combat this problem and reduce the outstanding balances that businesses owe the tax administration, a strategy has already been drafted allowing businesses to make a contracted payment arrangement, such as to pay off the amount via installments.

This aims to achieve business facilitation and will also improve the income received from taxes according to the state budget.

The implementation of laws which allowed for debt write offs also helped to reduce the amount of tax debt, with the written off debt totalling 54.3billion lek.

/Ora News.tv/