Minister Malaj Reports Positive Fiscal Performance in First Quarter of 2026; Revenues Exceed 200 billion ALL

Total revenues for the January–March 2026 period reached 205.1 billion ALL, surpassing the planned target by 5.8% and marking a 13.3% increase compared to the same period in 2025.
During a press conference, Finance Minister Petrit Malaj stated that fiscal and economic indicators for the first quarter showed positive performance. This was supported by improved tax and customs administration, increased economic formalization, and the expansion of employment and business activity. Malaj emphasized that the revenue growth was not due to tax increases, but rather the result of more effective fiscal policy implementation and the medium-term revenue strategy.
Taxes accounted for the largest share of the revenue structure at 37.9%, followed by customs revenues at 25.8% and social and health insurance contributions at 22.3%. Revenues collected by the tax administration reached 77.7 billion ALL, which is 7.1 billion ALL more than a year earlier. VAT revenues amounted to 25.2 billion ALL, representing a 19.4% year-on-year increase. Meanwhile, customs revenues totaled 52.9 billion ALL and social and health insurance contributions reached 45.7 billion ALL, an increase of 8.9% compared to 2025.
Budget expenditures for the same period totaled 156 billion ALL, reaching 92.9% of the planned target and marking a 5.9% increase compared to the previous year. Current expenditures were recorded at 150.7 billion ALL, while capital expenditures were 5.3 billion ALL. This reflects a slower pace of implementation during this stage of the year.
Developments in the labor market and economic activity also contributed to this performance. The number of businesses increased by 5%, reaching 143,875, compared to a year earlier. Additionally, 6,085 new businesses were registered, which is 12% more than in the first quarter of 2025. During the same period, 13,825 new employees entered the labor market. Wage brackets ranging from 70,000 to 100,000 ALL in the construction and tourism sectors increased by 25% compared to March 2025, while those ranging from 100,000 to 120,000 ALL rose by 26%.
There was also growth in tax declarations and personal income reporting. A total of 164,263 individual income tax returns were filed, which is 25% more than a year earlier. Meanwhile, the system generated approximately 1.4 billion ALL in reimbursements. In total, 310,700 annual tax returns were filed. Additionally, 77,077 citizens benefited from the support program for children under 18.
Finally, Minister Petrit Malaj urged all processing and collection entities in the agricultural sector to issue self-invoices to farmers so they can take advantage of the 10% VAT compensation program set to begin on July 1, 2026. He announced that the Tax Administration is assessing the impact of the new policy. Preliminary data show a 20% increase in transactions involving around 5,642 farmers between registered farmers and collection and processing entities. According to estimates, the amount expected to be transferred to farmers’ accounts during the first quarter of 2026 alone could reach 400 million ALL. This is significant because the agricultural sector has not yet reached the peak of its trading activity with processors and collection entities.