CONTEMPORARY APPROACHES IN THE ANALYSIS OF ECONOMIC PERFORMANCES
POSSIBILITIES FOR REDUCING EVASION OF INDIRECT TAXES IN SERBIA
Milica Ristić
Abstract: The significance of tax evasion is reflected in the balance of negative effects that this social phenomenon can have on the economic development of all countries. The purpose of this paper is to analyze the evasion of indirect taxes and factors which are determining its scope and to point out the magnitude of this problem, especially in the countries where taxes are the main source of public revenues. Special attention is committed to the analysis of Serbia’s fiscal policy and tax reforms directed on increase tax rates. Relatively slow GDP growth, compared to comparable countries in central and eastern Europe and public debt, which amounted to 59.3% of GDP in 2008, initiated a tax rate growth strategy that increased tax evasion without significant implications on the growth of public revenues. In the last part of the paper, the author gives recommendations for increasing the volume and efficiency of VAT collection, which are also in the function of reducing the evasion of indirect taxes.
Keywords: tax avoidance, tax evasion, tax revenues, indirect taxes, VAT
Published: p. 209-221
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