Naslov
The impact of regulatory changes on the tax revenues of the City of Zagreb

Autori
Primorac, Marko ; Šimović, Hrvoje ; Davidović, Marija

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Proceedings of 10th International Scientific Symposium Region Entrepreneurship Development (RED)

Urednik/ci
Leko Šimić, Mirna ; Crnković, Boris

Izdavač
Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku

Grad
Osijek

Godina
2021

Raspon stranica
63-78

ISSN
1848-9559

Ključne riječi
the City of Zagreb ; regulatory changes ; net fiscal effects ; tax revenues ; local and regional government units

Sažetak
The city of Zagreb - the capital of Croatia, has the largest fiscal capacity and performs tasks within the competence of the city and the county. Frequent changes in laws regulating subnational units’ funding have led to system instability, poor budget planning, and difficulties in effectively financing devolved functions. Particularly significant changes occurred in the distribution of the personal income tax (PIT) revenues, corporate income tax (CIT) sharing and real estate transfer tax (RETT). The paper aims to describe in detail these changes and their impact on the revenues of local and regional units (LRGUs) in general and the City of Zagreb in particular. The paper covers the period from 2007 to 2019, with a particular focus on the period from 2014 to 2019 when most significant changes occurred as a consequence of the tax reform. The average total revenues and receipts of the City of Zagreb in the period from 2002 to 2018 amount to HRK 6.4 billion, while total expenditures and expenses stood at HRK 6.5 billion on average. Authors employ fiscal impact analysis and scenario analysis to estimate the total cumulative loss of Zagreb’s tax revenues due to changes in regulations (net fiscal effect) in the five-year period (from 2015 to 2019) to about HRK 5.1 billion. In the same time, revenues (including taxes) of subnational sector in general have increased. These results should be interpreted with extreme caution because in addition to changes in tax regulations, the revenues were affected by macroeconomic trends (cycle change), but also some other variables and effects that are not analyzed in more detail. Nevertheless, the analysis can be very useful for getting an impression of the influence of recent regulatory changes on intergovernmental fiscal relations and redistribution of financial resources on local and regional government level.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA