ROLE OF TAX REGULATIONS IN THE REPUBLIC OF KOSOVO, COUNTRIES OF THE BALKANS AND THE EUROPEAN UNION, IN DETERMINING TAX POLICY

Year 2019, , 63 - 71, 30.06.2019

Refik Kryeziu

https://doi.org/10.17261/Pressacademia.2019.1045

Abstract

Purpose- In this paper the main purpose is the role of tax regulations in the Republic of Kosovo, countries of the Balkans and the European Union, in determinin tax policy.

Methodology- The paper is handeled in two important spaces of tax rated in Republic of Kosovo, while in the second focus are the comparations of som regional coutries of the Europen Unino, there will be secondary data which are from different authors and these are presented in theirs studies. Empirical methods are used in the data of tax policy, than will be used in the comporative methods.

Findings- With the recent reforms, value added tax has been set at two tax rates, 8% and 18%. Balkan states have constantly reformed tax rates, reducing them and redefining the tax base. There are differences in tax rates, corporate income tax and value added tax. In EU member states tax rates are heterogeneous, which is the result of national traditions and a symbol of their sovereignty. In addition to having different rates of Personal Income Tax (PIT), we also have differences in the tax rate of Tax on Income Tax (TIT) and Value Added Tax (VAT). Hungary has the Lowest Rate of Tax (LRT) of 9%, while Malta has the highest of 35%. The Lowest standard VAT rate is in Luxembourg of 17%, tripled (3%, 8% and 14%), the highest in Sweden by 27% (12% and 6%). Conclusion- In tha end of this paper we will conclude that the tax policy norms in the Republic of Kosovo, the Balkan countries and the member states of the Europian Union, is to adapt the position of national economies and to continuously improve and design of the tax systems.

Keywords

Taxes, tax rates, tax policies, reforms, comparison of tax policices

References

• Alvaredo, F., Atkinson, A.B.,Piketty, T., &Saez , E. (2013). The top 1 percent in international and historical perspective. The Journal of Economic Perspectives, 27(3), 3-22.
• Altiparmakov, N. (2010). Poreski sistem u funkciji zapošljavanja i ekonomskog rasta. In Poreska politika u Srbiji: Pogled unapred, 22-38. Beograd: USAID Sega projekat.
• Atkinson, A. B. Piketty, Th. and Saez, E.(2011). Top Incomes in the Long Run of History. Journal of Economic Literature 2011, 49:1, 3-71.
• Auerbach, A. J., 2006. The Future of Capital Income Taxation. Fiscal Studies, 27, pp- 399- 420.
• Andreoni J, Erard B, Feinstein J. Tax compliance. Journal of economic literature. 1998 Jun 1; 36(2):818–60.
• Anicic, A., Laketa, M., Radovic, B., Radovic, D., & Laketa, L. (2012). Tax policy of Serbia in the function of developing the economic system. UTMS Journal of Economics, 3(1), 33-43.
• Asllani, G. & Imeri, V. (2016). Fiscal Right and Tax System Building, ArmageddonPristina.
• Bailey, S. J. (2002). Public Sector Econmics: Theory, Policy and Practice, Second Edition. London: Palgrave Macmillan.
• Bedri, P. (2009). Tax reforms in Balkan states-the case of Kosovo.Thesis Kosova, Pristina,7(2) 59.
• Buti, M., Zourek, H. Deroose, S. Pench, L., Kermode, P. (2014). Tax Reforms in EU Member States Tax policy challenges for economic growth and fiscal sustainability. European Economy, 4, 17.
• http://ec.europa.eu/economy_finance/publications/european_economy/2014/pdf/ee6_en.pdf.
• Blažić, H., 2008. Croatian Tax System: From Consumption-Based to Income-Based In: R. McGee, ed. Taxation and Public Finance in Transition and Developing Economies. New York: Springer, pp. 433-459.
• Bénassy-Quéré A., N. Gobalraja and A. Trannoy (2007), “Tax and Public Input Competition”, Economic Policy, 22(50), pp. 385-430.
• Čok, M., Urban, I., & Verbič, M. (2013). Income redistribution through taxes and social benefits: The Case of Slovenia and Croatia. Panoeconomicus, 60(5), 667-686.
• Crossley, T. F., Low, H. and Wakefield, M., 2009. The economics of a temporary VAT cut. Fiscal Studies, 30 (1), pp. 3-16.
• Cnossen, S., 2002. Tax policy in the European Union: A review of issues and options. CESifo Working Paper, No. 758
• Deb, R. (2018). Tax Reforms & GST: A Systematic Literature Review. Journal of Commerce and Accounting Research. 7, 1 140-53.
• Easterbrook K. F. (2008). Flat Taxes and Labor Supply in Central and Eastern Europe.
• https://economics.stanford.edu/sites/g/files/sbiybj9386/f/publications/easterbrook_k._2008_honors_thesis.pdf
• FREN Fond za razvoj ekonomske nauke. (2010). Postkrizni model ekonomskog rasta i razvoja Srbije 2011-2020. Beograd: FREN. 2020. Beograd: FREN.
• Jenn, B.H., “Flat Taxes: Past, Present, and Future,” Tax Notes International, September 18 2006, pp. 995–1014.
• Kaçi, M. (2014). Effects of tax competition on profit tax rates in Albania (in search of scientific degree "Doctor").
• Kaplanoglou, G., & Rapanos, V. T. (2011). The Greek fiscal crisis and the role of fiscal governance. Hellenic Observatory, Papers on Greece and Southeast Europe, Greece Paper No. 48, June.
• Kaplanoglou, G., & Rapanos, V. T. (2013). Tax and trust: The fiscal crisis in Greece. South European Society and Politics, 18(3), 283-304.
• Kryeziu, R. (2014). Public Finances, p. 87, Pristina 2014.
• Kryeziu, R. (2011). National Economy, Prospects of Economic Development of the Republic of Kosovo, Pristina, 105.
• Kryeziu, R. (2009). Foreign Investments in theRepublic of KosovoandTheir Impact in Economic Development, Summary of Works. International Conference, Management ChallengesDuringtheTransition, Tirana, Faculty of Economics, University of Tirana, 323.
• Keen, M. and King, J., 2002. The Croatian Profit Tax: An ACE in Practice. Fiscal Studies, 23 (3), pp. 401-418.
• Keen, M., A. Klemm, and R. Varsano, “The ‘Flat Tax(es)’: Principles and Evidence,” 2006. International Monetary Fund, IMF Working Paper: 06/218.
• Klofat, A.(2017). CorporateTaxRatesandRegional Integration: EvidencefromTransitionCountries. Journal of Economic Integration, 2017, vol. 32, issue 1, 01-34.
• Kneller, R., Bleaney, M. F., and Gemmell, N., 1999. Fiscal policy and growth: Evidence from OECD countries. Journal of Public Economics, 74, pp. 171-190.
• Levitas, T., Vasiljevic, D., & Aleksandar, B. (2012). Porez na imovinu: Analiza stanja i perspektiva reformi. In Poreska politika u Srbiji: Pogled unapred, 95- 123. Beograd: USAID Sega projekat.
• Gandullia, L. (2004). Tax Systems and Reforms in New MemberCountries: An Overview, Department of PublicandEnvironmentalEconomics University of Pavia - Italy. http://www.siepweb.it/siep/old Doc/wp/352.pdf
• Garnier, G. [et al.], 2013. Recent Reforms of Tax Systems in the EU: Good and Bad News. Brussels: European Commission.
• Genschel, P., Kemmerling, A., Seils, E. (2011). Accelerating Downhill: How the EU Shapes Corporate Tax Competition in the Single Market. Journal of Common Market Studies 49(3), 585-606.
• Grabowski, M., Tomalak, M. (2004). Tax system Reforms in the Countries of the Central Europe and the CIS”, Special Study, pp.251-301
• GSIS (2011). Statistiko´D1lti´o Forologikv ´n D1dom1 ´nvn Oikonomikoy´ 2009 [Statistical bulletin of tax data for the financial year 2009], Ministry of Economy and Finance, Athens.
• Martinez-Vazquez, J. and McNab, R. (2000) ‘The Tax Reform Experiment in Transitional Countries’, National Tax Journal, Vol. 53 no. 2, 273-298, June
• Majcen, B., Verbic, M., Bayar, A., Cok, M. (2009). The income tax reform in Slovenia: Should the Flat Tax Have Prevailed? Eastern European Economics, 47(5), 5-24.
• McLure, C. E., Jr., 1991. A Consumption-Based Direct Tax for Countries in Transition from Socialism. Working Papers. Washington: The World Bank.
• Morrell, K., & Tuck, P. (2014). Governance, tax and folk tales. Accounting, Organizations & Society, 39(2), 134-147.
• Mylonas, P., Magginas, N., & Pateli, E. (2010). What are the margins for increasing PIT revenue in the Greek economy? Monthly Macro economic Outlook (Strategy and Economic Research Division, National Bank of Greece), May, 1-19.
• Hansson, A., Olosfotter, K. (2005). Integration and tax competition: an empirical study of OECD countries. Lund University WorkingPaper 2005/4.
• Hall, R. E and Rabushka, A., 1985. The Flat Tax. Stanford: Hoover Press Publication.
• Hutsebaut, M.(2014).Taxation and budgetary policies in the western Balkans. SEER: Journal for LabourandSocialAffairs in Eastern Europe Vol. 17, No. 2, EngagementandPoliticalChange: WallsReconstructed? (2014), pp. 207-235.
• Quéréa , A. B. Trannoyb A. and Wolffc G.(2014). Tax Harmonization in Europe: Moving Forward. French Council of Economic Analysis. 3
• Pere, E. Hshorva, A.(2011). Tax Systems in West Balkans Countries- Between Simplicity and Efficiency. Romanian Economic and Business Review 6 (2), 80.
• Pendovska, V. and Dzafce, S., 2009. Flat Tax: The Case of Republic of Macedonia. Pravni zivot, (12), pp. 123-135
• Pendovska, V. Neshovska, E. (2014). Tax reforms: experiencs and perspectives the case of Republic of Macedonia. Tax reforms: experiences and perspectives, Conference Proceedings, 96-120.
• Piketty, Thomas, and Emmanuel Saez. 2013. “Optimal Labor Income Taxation.” In Handbook of Public Economics, Vol. 5, edited by Alan J. Auerbach, Raj Chetty, Martin Feldstein, and Emmanuel Saez, 391-474. Amsterdam: Elsevier-North Holland.
• Piketty, Th. Saez, E., Stantcheva, S.(2014). Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities. American Economic Journal: Economic Policy 2014, 6(1): 230-271
• Reckon. (2009). Study to quantify and analyze the VAT gap in the EU-25 member states. Report to the Directorate-General for Taxation and Customs Union, European Commission.
• Rădulescu, M(2011). The fiscal reforms and flat tax in europe and cee contries. Scientific Bulletin-Economic Sciences Volume 10/Issue 2. 24
• Tanzi, V. and Tsibouris, G. (2000) ‘Fiscal Reform Over Ten Years of Transition, International Monetary Fund, WP/00/113, June
• Tcherneva, P. R., 2011. Fiscal Policy Effectiveness: Lessons from the Great Recession. Working Paper, No. 649. Levy Economics Institute of Bard College.
• Stepanyan, V. (2003). Reforming Tax Systems: Experience of the Baltics, Russia, and Other. Countries of the Former Soviet Union’, IMF WP/03/173.
• Schafer, M.E. and Turley, G. (2001). Effective versus statutory taxation: measuring effective tax administration in transition economies.European Bank for Reconstruction and Development Working Paper No. 62, May.
• See Andersson, F. and R. Forslid (2003): “Tax Competition and Economic Geography”, Journal of Public Economic Theory, 5(2), pp. 279-304.
• Šimovič, H. Blažič, H. Štambuk, A.(2014). Perspectives of tax reforms in Croatia: Expert opinion surver. Tax reforms: experiences and perspectives, Conference Proceedings, 121-147.
• Wiswesser, R., 1999. Adjustment of Personal and Business Income Taxation to Inflation. In: M. Rose, ed. Tax Reform for Countries in Transition to Market Economies. Stuttgart: Lucius and Lucius, pp. 73-98.