Naslov
Tax reform in transition: the case of Croatia
(Tax Reform in Transition: the Case of Croatia)

Autori
Ott, Katarina

Izvornik
Acta oeconomica Pragensia (0572-3043) 6 (1998), 6; 269-315

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
tax reform ; transition ; Croatia

Sažetak
The numerous positive aspects and characteristics of tax reform in Croatia have already been sufficiently stressed. But there are aspects which do not follow the usual recommendations and attitudes. The following ones are strongest: - the new tax system is rather more complicated than the former one, which makes it difficult to judge, in spite of enormous changes in the size and organisation of the tax administration, whether an improvement or deterioration of administrative capabilities has actually occurred ; - the highest income tax rate was not immediately, from the very beginning, harmonised with the profit tax rate ; - although numerous deductions and credits, exemptions and allowances are not provided for in the laws on income, profit and VAT themselves, the taxation system is fragmented by introduction of such deductions and credits, exemptions and allowances through specialised laws (such as the law on liberated areas, islands, artists, etc.) - instead of becoming less, discussions about tax evasion (see Madžarević, Sanja, 1997) and about increasing differences in income and property (this should, however, be either confirmed or disputed in a special analysis of the income tax burden) are becoming louder and more heated ; - gradual reform has been chosen instead of the reform package ; - the income tax rate is not all that lower than the one in developed countries ; - the public has been insufficiently involved in discussions about the tax system ; - ideological creators of the reform are foreigners for whome it was very hard to completely perceive all the aspects and control the implementation of their ideas and suggestions, so even the best of suggestions sometimes finished up deficient (in language, ideas, sense) both in the system and in concrete laws ; - the reform was not preceded by preliminary analysis of the existing taxpayers burdens, nor by analysis of influence which the reform would have on the future tax burden distribution. Among already mentioned numerous positive characteristics of the reforms in Croatia, let us finally single out the following: - the reform undertaken tackled the whole of public finance and not only taxation ; - adjustment to inflation was introduced ; - interests and dividends are not taxed (although some would disagree that it is a positive characteristic) and - enormous readjustment in the tax administration was carried out, which will (if not immediately, then in the long run) certainly improve the efficiency and transparency of the tax system in Croatia.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA