Тhe Role and Importance of Principles of Taxation in Creating a (Solid) Tax System
Тhe Role and Importance of Principles of Taxation in Creating a (Solid) Tax System

Author(s): Bojana Vasiljević Poljašević
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Principles of taxation; (Solid) Tax system
Summary/Abstract: Since the early 18th century, theory and practice have sought universal principles for a “solid” tax system. These principles help assess existing tax policies and review proposed innovations. Taxes are not just fees for living in a society; they shape the civilization citizens want to live in. The state's decisions on taxation profoundly affect the economy, resource allocation, and public satisfaction. This research examines key tax principles necessary for any good tax policy, focusing on how taxes support economic growth and other specific fiscal and parafiscal goals. The analysis also explores the role and importance of a solid tax system. Using the Republic of Srpska’s tax system as a case study, the paper assesses distortions in its current tax system. The author concludes that while no universal tax principles are ideal for all countries and times, certain principles lead to a solid tax system in any country.

• Details
• Contents