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Horst Dieter Vesterhoff (economic adviser to three German chancellors) said that a tax system should meet at least three conditions. First the state to bring enough income must be based on the solvency of citizens and should not impede or dissolve desire to work, to do investments or research and further discoveries. Progressive tax is one of the key points of the new government. Progressive taxation is a type of tax system that is designed to put the greatest tax burden on those who make the most money. The main reason for establishing progressive taxes is to achieve fairness in taxation, at least according to some. Theoretically, those who make little should pay very little in taxes, while those who make more should pay more. How many of ways the progressive taxation can work? In the US, the income tax paid per year by citizens is progressive. It is based on income levels, and as these income levels rise, so do tax levels. It’s a complicated system, where the next portion of income above a certain level is taxed at a higher percent. A progressive tax system allows a government to collect a larger amount of tax revenue, which, can be used for the benefit of public services, such as education, welfare and medical assistance. From the above, the question naturally arises, is Albania's prepared to implement successfully progressive tax? Based on this question in this article I would like to do a synthetic analyses of fiscal system during last 15 years in Albania and identifying what are advantages and disadvantages of progressive tax implemented by stressing the opportunity of government on this process. DOI: 10.5901/jesr.2014.v4n2p35

Albania Government and It’s Challenges in Progressive Tax Implementing