Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps

Kosovo has a simple tax system and relatively low tax rates. A risky feature of Kosovo’s tax system is the high dependence on border taxes. In 2012, 71 percent of revenue was collected at the border in the form of trade taxes and value added tax (V...

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Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	Washington, DC 2015
Subjects:	MARKET ECONOMY INCOME TAXES TAX RATE POLICIES PROPERTY TAX ADDED TAX TRANSPARENCY DISPOSABLE INCOME INTEREST INCOME LOCAL GOVERNMENTS REVENUES PRICE CHANGES PROPERTY TAX COMPLIANCE TAX EVASION MARKET PRICE TAX INCOME TAX SIN TAXES TAX LEGISLATION CORPORATE INCOME TAX UNDERGROUND AUDITS PERSONAL INCOME TAX PUBLIC POLICY FISCAL POLICIES INVESTMENT COSTS SHARE BORDER TAXES TAX SYSTEM TRANSPORT FUEL CONTRACTS PERSONAL INCOME TAX REGIME TAXPAYERS REVENUE TAX POLICY EXPORT COMMUNICATION AUDIT PUBLIC FINANCE TAX BASE TRANSITION ECONOMIES COMMODITIES ARREARS FINANCE TAXES
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24663719/kosovo-public-sector-revenues-tax-policies-tax-evasion-tax-gaps http://hdl.handle.net/10986/22269

id	okr-10986-22269
recordtype	oai_dc
spelling	okr-10986-222692021-04-23T14:04:08Z Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps World Bank MARKET ECONOMY INCOME TAXES TAX RATE POLICIES PROPERTY TAX ADDED TAX TRANSPARENCY DISPOSABLE INCOME INTEREST INCOME LOCAL GOVERNMENTS REVENUES PRICE CHANGES PROPERTY TAX COMPLIANCE TAX EVASION MARKET PRICE TAX INCOME TAX SIN TAXES TAX LEGISLATION CORPORATE INCOME TAX UNDERGROUND AUDITS PERSONAL INCOME TAX PUBLIC POLICY FISCAL POLICIES INVESTMENT COSTS SHARE BORDER TAXES TAX SYSTEM TRANSPORT FUEL CONTRACTS PERSONAL INCOME TAX REGIME TAXPAYERS REVENUE TAX POLICY EXPORT COMMUNICATION AUDIT PUBLIC FINANCE TAX BASE TRANSITION ECONOMIES COMMODITIES ARREARS FINANCE TAXES Kosovo has a simple tax system and relatively low tax rates. A risky feature of Kosovo’s tax system is the high dependence on border taxes. In 2012, 71 percent of revenue was collected at the border in the form of trade taxes and value added tax (VAT) on imports. Shifting from border to domestic revenue collection is needed. The simple tax system can make it easier for the tax administration of Kosovo (TAK) to adjust direct taxes while encouraging labor market formality. Low domestic revenue collection suggests the presence of large tax gap - the difference between the amount the TAK should collect and the amount it actually does collect. The wider social and economic consequences of tax evasion are high. Finding ways to raise domestic revenue to compensate for the decline in border revenues is going to require actions on a number of fronts. First, strengthening the TAK’s capacity to increase compliance and reduce tax evasion, through judicial means. Second, reducing the informal economy will bring more firms and employees into tax net. Third, efforts can be made to increase revenues through existing taxes. Finally, policies that boost private sector growth, including an improved business climate, will help increase domestic production and therefore tax revenues. 2015-07-21T15:18:39Z 2015-07-21T15:18:39Z 2014-06 Report http://documents.worldbank.org/curated/en/2015/06/24663719/kosovo-public-sector-revenues-tax-policies-tax-evasion-tax-gaps http://hdl.handle.net/10986/22269 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Public Sector Study Economic & Sector Work Europe and Central Asia Kosovo
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	MARKET ECONOMY INCOME TAXES TAX RATE POLICIES PROPERTY TAX ADDED TAX TRANSPARENCY DISPOSABLE INCOME INTEREST INCOME LOCAL GOVERNMENTS REVENUES PRICE CHANGES PROPERTY TAX COMPLIANCE TAX EVASION MARKET PRICE TAX INCOME TAX SIN TAXES TAX LEGISLATION CORPORATE INCOME TAX UNDERGROUND AUDITS PERSONAL INCOME TAX PUBLIC POLICY FISCAL POLICIES INVESTMENT COSTS SHARE BORDER TAXES TAX SYSTEM TRANSPORT FUEL CONTRACTS PERSONAL INCOME TAX REGIME TAXPAYERS REVENUE TAX POLICY EXPORT COMMUNICATION AUDIT PUBLIC FINANCE TAX BASE TRANSITION ECONOMIES COMMODITIES ARREARS FINANCE TAXES
spellingShingle	MARKET ECONOMY INCOME TAXES TAX RATE POLICIES PROPERTY TAX ADDED TAX TRANSPARENCY DISPOSABLE INCOME INTEREST INCOME LOCAL GOVERNMENTS REVENUES PRICE CHANGES PROPERTY TAX COMPLIANCE TAX EVASION MARKET PRICE TAX INCOME TAX SIN TAXES TAX LEGISLATION CORPORATE INCOME TAX UNDERGROUND AUDITS PERSONAL INCOME TAX PUBLIC POLICY FISCAL POLICIES INVESTMENT COSTS SHARE BORDER TAXES TAX SYSTEM TRANSPORT FUEL CONTRACTS PERSONAL INCOME TAX REGIME TAXPAYERS REVENUE TAX POLICY EXPORT COMMUNICATION AUDIT PUBLIC FINANCE TAX BASE TRANSITION ECONOMIES COMMODITIES ARREARS FINANCE TAXES World Bank Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps
geographic_facet	Europe and Central Asia Kosovo
description	Kosovo has a simple tax system and relatively low tax rates. A risky feature of Kosovo’s tax system is the high dependence on border taxes. In 2012, 71 percent of revenue was collected at the border in the form of trade taxes and value added tax (VAT) on imports. Shifting from border to domestic revenue collection is needed. The simple tax system can make it easier for the tax administration of Kosovo (TAK) to adjust direct taxes while encouraging labor market formality. Low domestic revenue collection suggests the presence of large tax gap - the difference between the amount the TAK should collect and the amount it actually does collect. The wider social and economic consequences of tax evasion are high. Finding ways to raise domestic revenue to compensate for the decline in border revenues is going to require actions on a number of fronts. First, strengthening the TAK’s capacity to increase compliance and reduce tax evasion, through judicial means. Second, reducing the informal economy will bring more firms and employees into tax net. Third, efforts can be made to increase revenues through existing taxes. Finally, policies that boost private sector growth, including an improved business climate, will help increase domestic production and therefore tax revenues.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps
title_short	Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps
title_full	Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps
title_fullStr	Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps
title_full_unstemmed	Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps
title_sort	republic of kosovo public sector revenues : tax policies, tax evasion, and tax gaps
publisher	Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/06/24663719/kosovo-public-sector-revenues-tax-policies-tax-evasion-tax-gaps http://hdl.handle.net/10986/22269
_version_	1764450671081291776

Republic of Kosovo Public Sector Revenues : Tax Policies, Tax Evasion, and Tax Gaps

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