ABSTRACT: The major groups of taxes in a country are Direct Taxes and Indirect Taxes. The main objective of our study is to analyze the impact of Direct Taxes (DIR) and Indirect Taxes (IND) on the economic growth in Albania. This topic has been subject for different studies during recent decades. To conduct this study, secondary data were collected on an annual basis for a time span of 10 years. We have used the method of linear regression analysis by identifying the gross domestic product as the dependent variable and the Direct Taxes (DIR) and Indirect Taxes (IND) as the independent variables. The study results indicate that the independent variables have a positive effect on the economic growth of Albania.

KEYWORDS -direct taxes, economic growth, gross domestic product, indirect taxes