The Ability to Pay Principle as the Basis of Tax Justice: Its Absence in the Constitution of the Republic of Albania and the Legal Consequences

Abstract

The ability to pay principle represents one of the fundamental pillars upon which tax justice in democratic states is built. This principle implies that tax burdens should be distributed fairly, in proportion to each taxpayer’s economic capacity, while respecting substantive equality before the law. However, in the Albanian constitutional order, this principle is not explicitly enshrined, unlike in many European Union member states where it is considered a fundamental standard of fiscal policy. Its absence from the Constitution has created interpretative gaps, allowing the legislature to exercise broad discretion in defining tax policies, often at the expense of coherence between fiscal justice and the principle of equality.  This paper aims to analyze the theoretical and constitutional foundations of the ability to pay principle, its role in establishing a fair tax system, and the necessity of its explicit inclusion in the Constitution of the Republic of Albania, in line with European standards and best international practices.