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TAX BURDEN IN SERBIA
www.stat.gov.rs [email protected]
TAX BURDEN IN SERBIA
Dragan Vukmirović, Rade Ćirić-Statistical Office of the Republic of Serbia-
Ksenija Despotović-“Mihailo Pupin” Institute-
�Modern economies are basically mixed economies
�Tax burden level – high or small?
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�Tax burden level – high or small?
�How to measure tax burden?- tax rates- tax to GDP ratio
� Determination of the tax burden levelusing the tax rate is associated with two serious drawbacks:
1. Tax rates are only one element of which the tax burden depends. Width of the tax base
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tax burden depends. Width of the tax base and defining the taxpayers also affect the tax
burden;
2. Tax burden on the national economy level cannot be determined due to the lack of a common denominator which determine the relative importance of each individual tax
rate.
�Tax to GDP ratio – relative indicator
�What are taxes?
�According to the OECD classification,
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�According to the OECD classification, taxes are divided in 6 groups:-Taxes on income, profits and capital gains;-Social security contributions;-Taxes on payroll and workforce;-Taxes on property;-Taxes on goods and services and-Other taxes.
� In the analytical interpretation, following factors should be taken into account:
1. The extent to which countries provide social or economic assistance via tax expenditures, rather
than direct government spending;
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than direct government spending;
2. Whether or not social security benefits are subject to tax;
3. The GDP revision;
4. The tax evasion and the size of the underground economy
8.9
8.7
8.1
7.4
5.5
5.4
5.3
4.7
4.6
3.1
0.2
Japan
France
Austria
New Zealand
Australia
Netherlands
Canada
Germany
United Kingdom
Ireland
United States
Graph 1. Changes in tax to GDP ratio between 1965 and 2010, percentage points
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18.2
17.5
17.0
15.4
15.4
13.2
13.1
12.7
12.5
12.4
11.7
9.0
8.9
10.1
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
Denmark
Italy
Spain
Portugal
Turkey
Norw ay
Greece
Belgium
Sw eden
Sw itzerland
Finland
Iceland
Luxembourg
Japan
There are many reasons that caused the increase of the tax burden during the observed period:
1.Economic strengthening of the countries;
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1.Economic strengthening of the countries;
2.Increased level of government intervention;
3.Political reasons;
4.Poor management of the public finances;
5.Social reasons;
6.Environmental protection.
30.0
35.0
40.0
45.0
50.0
55.0
Tax to GDP ratios in OECD countries, 2010
www.stat.gov.rs [email protected]
0.0
5.0
10.0
15.0
20.0
25.0
Me
xic
o
Ch
ile
Un
ite
d S
tate
s
Ko
rea
Au
str
alia
Tu
rke
y
Ja
pa
n
Ire
lan
d
Slo
va
k R
ep
ub
lic
Sw
itze
rla
nd
Gre
ece
Ca
na
da
Po
rtu
ga
l
Ne
w Z
ea
lan
d
Sp
ain
Po
lan
d
Isra
el
Esto
nia
Cze
ch
Re
pu
blic
Un
ite
d K
ing
do
m
Ice
lan
d
Ge
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ny
Lu
xe
mb
ou
rg
Hu
ng
ary
Slo
ve
nia
Ne
the
rla
nd
s
Au
str
ia
Fin
lan
d
No
rwa
y
Fra
nce
Ita
ly
Be
lgiu
m
Sw
ed
en
De
nm
ark
30.0
35.0
40.0
45.0
50.0
55.0
Tax to GDP ratios in OECD countries and Serbia, 2010
www.stat.gov.rs [email protected]
0.0
5.0
10.0
15.0
20.0
25.0
Me
xic
o
Ch
ile
Un
ite
d S
tate
s
Ko
rea
Au
str
alia
Tu
rke
y
Ja
pa
n
Ire
lan
d
Slo
va
k R
ep
ub
lic
Sw
itze
rla
nd
Gre
ece
Ca
na
da
Po
rtu
ga
l
Ne
w Z
ea
lan
d
Sp
ain
Po
lan
d
Isra
el
Esto
nia
Cze
ch
Re
pu
blic
Un
ite
d K
ing
do
m
Se
rbia
Ice
lan
d
Ge
rma
ny
Lu
xe
mb
ou
rg
Hu
ng
ary
Slo
ve
nia
Ne
the
rla
nd
s
Au
str
ia
Fin
lan
d
No
rwa
y
Fra
nce
Ita
ly
Be
lgiu
m
Sw
ed
en
De
nm
ark