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General Director of Taxes: Wage fund rises moderately from self-declarations, construction formalization continues

TIRANA, January 26 – General Director of Taxes Ilir Binaj reported a 9% increase in the wage fund compared with September 2025.

He spoke at a press conference with Finance Minister Petrit Malaj. Meanwhile, Binaj explained that the fight against informality continues to support pension growth and overall fiscal compliance. He added that the Tax Administration prioritizes the Fiscal Package, individual reimbursements, value-added tax for farmers, and alignment with European Union rules.

The construction sector campaign began with information sessions with chambers of commerce in November and December 2025. In addition, authorities published indicative wages affecting 120,000 employees. They invited 14,000 businesses to declare actual wages by January 15, 2026.

Later, self-declarations submitted by January 20 showed a 9% increase. Binaj said this rise fell short of expectations. As a result, authorities will continue the campaign to ensure compliance.

The campaign has three phases. First, officials will collect and formalize sales data from real estate agencies. Then, they will target subcontractors who failed to declare wages. Authorities will reassess sales, investigate suspicious funds, and report findings to the Anti-Money Laundering Directorate. Finally, they will focus on construction companies that ignored the first two phases.

Also, the risk management department will identify non-compliant builders. Authorities will verify them using the collected data. Binaj emphasized that officials will guide businesses to self-correct before taking further steps.

He stressed that the Tax Administration aims to educate businesses on wage formalization rather than penalize minor errors. The campaign will conclude on May 23, 2026. In addition, authorities will focus on tourism and food safety with specific operational plans for these sectors.

Furthermore, authorities will analyze banking data from 80 countries. They will verify the source of income for Albanian citizens abroad. Binaj said authorities will use all legal tools to prevent pension contribution evasion.

Finally, Binaj urged businesses and citizens to report undeclared wages through official Tax Administration channels.

/a.p./

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RTI