Taxes on consumption – transparency andi mpartiality of the value added tax

Doc. Dr. Arif Murrja, Sc. Teuta Çerpja, cand. Ph/D


In the economic literature, value added tax (VAT), is widely known as the most transparent and impartial form of taxiation at the same time. Based on this fact, VAT is a tax which is applied on the tax systems of many countries all over the world. Statistics also, show that VAT is applied in more than 100 countries worldwide.
The value added tax and turnover tax are included to the consumer tax group. Therefore, to explain the transparency and impartiality of the VAT, we will make comparisons between this form of taxation and tax on circulation. Also, highlighting the importance of VAT in public revenues, we will analyze the specific gravity of the public income tax in Albania, for the period 1993-2007.
Transparency, impartiality and the importance of value-added tax, will be introduced in this article according to the following structure: (1) Summary, (2) The use and discussion of data, (3) Hypothesis, and (5) Conclusions and recommendations.

Keywords: taxation, transparency, revenue, turnover, budget

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