Shall High Income Earners Pay More Taxes in The Kyrgyz Republic?

Abstract

In 2009 a flat tax reform was implemented in the Kyrgyz Republic following similar reforms in neighbor countries and efficiency reasons. This paper discusses problems in the Kyrgyz personal income taxation arising after the reform, when progressive income tax rates were changed to a flat rate. Taking into account a high income inequality in the country and a budget deficit problem, a flat tax schedule seems to be not optimal for the country. This paper investigates possible framework of the personal income taxation and tax rates for the Kyrgyz Republic, which will maximize tax revenues and reduce income inequality. The top optimal tax rates for high income earners in the Kyrgyz Republic are calculated following methodology by Saez (2001) and Brewer, Saez, and Shephard (2008). The results suggest that a personal income tax rate is quite low in the republic and can be increased for high income earners without large negative incentive effects on work effort. Progressive tax schedule should be considered in the republic by tax policymakers in the middle term perspective

Keywords

• Optimal taxation, income tax rate, budget policy, flat income taxation

Kırgızistan Cumhuriyetinde Yüksek Gelirliler Daha Fazla Vergi mi Ödeyecekler?

Abstract

2009 yılında Kırgızistan’da komşu ülkelerdeki benzer reformlar ve vergilemede etkinliğin sağlanması amacıyla tek oranlı vergi reformu uygulanmıştır. Bu makalede Kırgızistan’da kişisel gelirin vergilendirilmesinde artan vergi oranlarından tek oranlı vergilendirmeye geçişi sağlayan reform ile ortaya çıkan problemler ele alınmaktadır. Ülkedeki yüksek derecedeki gelir eşitsizliği ve bütçe açıkları dikkate alındığında tek oranlı verginin optimal olmadığı anlaşılmaktadır. Bu makalede Kırgızistan için vergi gelirlerini arttıran ve gelir dağılımındaki eşitsizliği azaltan olası kişisel gelir vergisi düzenlemeleri ve vergi oranları incelenmektedir. Yüksek gelir elde edenlere uygulanacak en yüksek optimal vergi oranı Saez (2001) ve Brewer, Saez, ve Shephard (2008) tarafından geliştirilen yöntem ile hesaplanmıştır. Sonuçlar ülkedeki mevcut kişisel gelir vergisinin yüksek kazanç elde edenler için oldukça düşük olduğunu ve bu nedenle çalışma temposunda herhangi bir azalmaya neden olmadan arttırılabileceğini göstermektedir. Bu amaçla artan oranlı vergi tarifesi veri politikası uygulayıcıları tarafından orta vadeli perspektifte dikkate alınmalıdır

Keywords

• Optimal vergileme, gelir vergisi oranı, bütçe politikası, tek oranlı vergileme

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