Income in developing countries represent a vital factor in the wellbeing of inhabitants and the whole society. The
consumer behavior changes in linearity with the change, meaning so increase and decrease, of tax rate. Albania, as a post dictatorial country and yet a transitional
economy with a very fragile economy has been having a very unstable tax policy. The change of taxes had an impact on the development of the economy, so periods of
time with low or flat taxes are accompanied with higher incomes and a higher rate of GDP. Constructive state policy in the field of consumption plays an important role
in sustainable social and economical development of economy. The state regulates the consumption process by means of fiscal policy, building the socially oriented
budget of the country, creating a fair taxation system for the population that stimulates domestic demand and economic activity. The aim of this article is to verify if the
income after taxes influences in the consumer behavior. If there happens to be found a linear correlation between the income and consumer behavior and we know that
higher tax rate means a smaller amount of net income what is the correlation between taxes and consumer behavior ? In this continuity of the article the major tasks are:
analysis of income level to the type of consumer behavior and social group of the consumers; analysis of the influence of Albanian taxation system on the possibilities of
increasing the domestic demand of different population groups; defining the measures intended for increase and growth of domestic demand.