Ekonomske performanse poreskog sistema Srbije

Abstract

Impact of the tax system on economic growth depends on the level of tax burden, its structure and the parameterization of main taxes. With the acceleration of the process of transition to a market economy, since 2001, Serbia has carried out a fundamental reform of its tax system, which has undergone a number of further changes in the past two decades. Serbia's tax system generates tax revenues of about 37% of GDP, which is below the average of the European Union (EU) countries, but moderately higher than the average of comparable countries in Central and Eastern Europe (CEE) and the Western Balkans. Empirical research shows that capital taxes (corporate income tax) and labor taxes (personal income tax and contributions) have a significantly greater negative impact on economic growth than consumption taxes (VAT, excise duties and customs duties) and property taxes. This suggests that the level of tax burden in Serbia may have a negative impact, while the structure of the tax system having a relatively positive impact on the conditions for economic growth. Harmonization of Serbia's tax system with EU rules is expected to increase the relative importance of selective consumption (Pigovian) taxes, which could create fiscal space to reduce more distorting taxes (e.g. on labor), which could yield a positive impact on the conditions for economic growth.