KUKES, JULY 9, 2010     The Mayor of Kukes, Hasan Halilaj and the Head of the USAID Mission in Albania, Joseph C. Williams launched today a new computerized tax system for the municipality.  The system, which was developed through USAID’s Local Governance Program in Albania (LGPA), allows for more efficient and effective administration of tax collections and services that will lead to greater tax revenue for the municipality and improved services for citizens.

Until now, Kukes’ tax department had to do the majority of its work manually. With the new computerized system, the tax department will more accurately be able to calculate tax bills and track tax payments, and even develop the necessary revenue projections and analyses so important for city planners and officials.  Computerizing the tax system will help the city improve tax collection and increase tax revenues so that Kukes can deliver higher quality services to its citizens. It will also reduce the number of one-on-one interactions with tax officials, which are cited as a source of corrupt practices. 

Through collaboration with the Government of Albania, USAID is implementing additional changes that will further enable Albanian municipalities to improve tax administration.  Together with the Treasury Department in the Ministry of Finance, USAID has modified the computerized treasury system to make it possible for local governments to access electronic data pertaining to all tax and non-tax revenues allocated to their local government account on a daily basis.  Information available will include date of payment, amount of payment, type of tax paid, and taxpayer information. In addition, USAID is working with the General Directorate of Taxation to allow local governments to access electronic data on taxpayer turnover based on cash register receipts for those businesses located within its territorial boundaries.  Both systems should become operational in the coming months.

To date, USAID has introduced computerized tax systems in 9 municipalities, including Lezhe, Fier, Fushe-Kruje, Korce, Pogradec, Shkodra, Elbasan, Gramsh, and Fier. In total, USAID/LGPA is contributing more than 37 million Lek to computerize 10 municipal tax departments including approximately 2 million Lek in Kukes.

USAID’s Local Governance Program in Albania (LGPA) works with ten municipalities throughout Albania to foster local economic growth, improve local governance, and strengthen civic and private sector engagement in local development.  LGPA’s partner municipalities are: Elbasan, Fier, Fushe-Kruje, Gramsh, Korçe, Kukes, Lezhe, Librazhd, Pogradec and Shkoder.