Establishment and Development of Tax system – Disadvantages and Advantages of Taxes. The Case of Kosovo

  • Driton BALAJ University of Prishtina - Faculty of Economics
  • Teuta MULAKU-BALAJ Tax Administration of Kosovo

Abstract

This paper aims at assessing the development of the tax system and identifying the disadvantages and advantages of taxes applied in Kosovo during the 2000 - 2013 periods. This paper also focuses on the Tax Administration, its performance and the assessment of domestic tax revenues. Despite the progress made during this period, it can be concluded that the tax system of Kosovo has been incomplete and not fully implemented. Its reform is still in the perfecting stage but the professional staff needs to be mobilized and the public administration should be depoliticized in order to overcome the setbacks and obstacles encountered up to this period and to implement it Kosovo wide. The results also show that the Kosovo Tax System is underpinned by indirect taxes which are the most important source of tax revenues, the Value Added Tax in particular.

References

[1] Bird, R., Casanegra de Janstcher, M. (1992). Improving Tax Administration in Developing Countries. Washington D.C. International Monetary Fund.
[2] Bird, R. M., Gendron, P. (2007). The VAT in Developing and Transitional Countries. Cambridge UK: Cambridge University Press
[3] Bird, Richard M. (1999) Tax Policy and Tax Administration in Transitional Countries. In International Studies in Taxation: Law and Economics, edited by Gustaf Lindencrona, Sven-Olaf Lodin, and Bertil Wiman. Netherlands: Liber Amicorum Leif Muten.
[4] Bogetic, Zeljko, and Ayre L. Hillman (1994). The Tax Base in Transition: The Case of Bulgaria. The World Bank Policy Research Working Paper 1267.
[5] Ebrill, Liam and Oleh Havrylyshyn (1999). Tax Reform in the Baltics, Russia, and Other Countries of the Former Soviet Union Occasional Paper 182, International Monetary Fund, Washington D.C.
[6] Gordon, R., Li, W. (2009) Tax Structures in Developing Countries: Many Puzzles and a Possible Explanation. Journal of Public Economics, 93(7-8): 855-66.
[7] Martinez-Vazquez & McNab, Robert, M. (2000): The Tax Reform Experiment in Transitional Countries. National Tax Journal, 53 (2): 273 – 298.
[8] McLure, Charles E., Jr. 1991a. Tax Policy for Economies in Transition from Socialism. Tax Notes International 3: 347-353.
[9] M. Grote et al. (2001). Kosovo: Reform Proposals Towards a More Balanced and Revenue-Productive Tax System, FAD Technical Assistance Report.
[10] Jenkins, G.P. (1992) Economic Reform and Institutional Innovation, Bulletin International Bureau of Fiscal Documentation. 588-596.
[11] OTT, K. (1998). Tax Administration Reform in Transition: The Case of Croatia. Occasional paper,
[12] Tait, A. (1988). Value added tax: International Practice and Problems, IMF, Washington, D.C.
[13] Tanzi, V. Ed. (1992). Fiscal Policies in Economies in Transition (Washington: International Monetary Fund).
[14] Tanzi, Vito. (1993). The Transition to Market: Studies in Fiscal Reform. Washington D.C.: International Monetary Fund.
[15] Tanzi, Vito. (1994). Reforming Public Finances in Economies in Transition. International Tax and Public Finance, 1 (2): 149-163.
[16] Tanzi, V. and Pellechio, A. (1995) The Reform of Tax Administration. IMF Working Paper. (WP/95/22). Fiscal Affairs Department
*** Tax Administration of Kosovo (2004) Regulation No 2004/52 on Personal Income Tax. Available at: http://www.unmikonline.org/regulations/unmikgazette/02english/E2004regs/RE2004_52.pdf (accessed November 10th 2016)
*** Tax Administration of Kosovo (2002) Regulation No 2002/4 on Personal Income Tax in Kosovo. Available at: http://www.unmikonline.org/regulations/2002/RE2002_04.pdf (accessed November 10th 2016)
*** UNMIK (2000) Regulation No 2000/20 on Tax Administration and Procedures. Available at: http://www.unmikonline.org/regulations/2000/reg20-00.htm (accessed November 10th 2016)
Published
2017-01-30
How to Cite
BALAJ, Driton; MULAKU-BALAJ, Teuta. Establishment and Development of Tax system – Disadvantages and Advantages of Taxes. The Case of Kosovo. Journal of Advanced Studies in Finance, [S.l.], v. 7, n. 2, p. 117-128, jan. 2017. ISSN 2068-8393. Available at: <https://journals.aserspublishing.eu/jasf/article/view/551>. Date accessed: 24 apr. 2024.
Section
Journal of Advanced Studies in Finance

Keywords

tax structure tax reform; government revenue