Analyzing The Determinants of Agricultural Value Added in EU15 Countries and Turkey by Panel Data

Author(s): Özlem Eştürk,Nilcan Mert / Language(s): English Issue: 26/2022

Countries have to deal with the sustainability of food supply and demand due to factors such as rapid increase in demand for agricultural food products on a global scale and climate change. Therefore, productivity and agricultural value added products have become strategically important to ensure food security. Developed countries provide a significant amount of value added in the agricultural sector. The aim of the study was to determine primary factors affecting the agricultural value added production in Turkey and EU15 countries and to determine how Turkey differs from these countries as a developing country. In this context, the long-term impact of government effectiveness, political stability and gross domestic product on agricultural value added has been investigated for the EU15 countries and Turkey for the period of 2002- 2019. Results indicated that Turkey had a lower agricultural value added amount than the EU15 countries. While a statistically significant and positive relationship between agricultural value added and agricultural GDP and Political Stability Index, a statistically significant and negative relationship between agricultural value added and Government Effectiveness Index were observed.

Agenția (Sucursala) Timișoara a Băncii Naționale a României în perioada 1919–1946

Author(s): Nadia Manea / Language(s): Romanian Issue: 29/2022

Largely based on the documents retained in the National Bank of Romania (NBR) Archive, this research paper on Timișoara NBR Branch (Agency) provides information concerning the activity between 1919 and 1946 of one of the most important representative offices of the National Bank of Romania, focusing on: its establishment, staff involvement in the monetary union process of 1920−1921, the takeover of the former offices of the Austrian-Hungarian Bank and the works performed for the maintenance and refurbishment of this heritage building, details on the operations whereby the branch supported the local economy by way of cheap money, information on the clients (banks and industrial firms) who made use of the NBR discount, trends in bank operation volumes, explanations concerning the reasons for awarding the agency a branch status (in 1927). The overview of the activity of the most important branch of the National Bank of Romania in Banat is completed with information regarding the impact of the Great Economic Depression and the debt conversion laws on the operations of the branch and on local banking institutions and, last but not least, by details regarding the involvement of the NBR in local charity actions and details on the situation of the branch during the Second World War. At the same time, this concise monography also includes a list of the managers and most significant officials who performed their professional duties in the Timisoara NBR branch in the period concerned.

Mikroekonomická kvantifikace výhodnosti českého základního důchodového pojištění dle parametrů pro rok 2023

Author(s): Jiří Vopátek / Language(s): Czech Issue: 5/2022

The paper addresses the solidarity and equivalence of the minimum amount of the assessment base for the payment of pension insurance premiums for the period 1993−2022 with an assessment of the impact on the regular old-age pension for eight defined income-typed individuals. According to the parameters for 2023, the analysis revealed that with respect to the minimum countable income, employees receive a total pension benefit of up to 7.3 times their average monthly assessment base, concerning which the internal rate of return (IRR) attains its highest values. Regarding self-employed persons with a minimum assessment base for the payment of insurance premiums, the amount of the duly assessed old-age pension reaches more than 2.9 times their average monthly assessment base; thus, even in this case, the IRR attains high values. Persons on the minimum wage receive a total pension benefit at a level of 2.1 times their average monthly assessment base. The article proves, employing IRR analysis, that the so-called first pension pillar remains advantageous for persons with the lowest assessment bases for the deduction of pension insurance premiums.

Zpráva o konferenci Sociální politika 2022

Author(s): Vladimír Barák / Language(s): Czech Issue: 5/2022

The report presents an account of the Social Policy 2022 international conference, which took place in Prague on 3 November 2022 under the auspices of the Department of Economic and Social Policy of the Faculty of Economics, Prague Economics University. This was the fourth such conference to be held, and this year it addressed the theme of the Impacts of Inflation on the Social Area.

Modely financování dlouhodobé péče

Author(s): Jaroslav Vostatek / Language(s): Czech Issue: 6/2020

The study analyses long-term care (LTC) financing systems in selected OECD countries and addresses the connection thereof with LTC, especially with respect to health care systems. The author concludes that the conservative (ChristianDemocratic) social model is not a promising model in this respect due, particularly, to the clear tendency towards the provision of universal health care. Experience shows that the liberal social model also presents problems due to trying to finance the LTC on the basis of a distinctive social assistance. The neoliberal social model declares a maximum liberalism and concurrently substantial state interventions, leading to a comparatively higher growth of health care and LTC care costs. Hence, the social democratic model seems to the author to provide the best foundation of the various systems available; the public politics declare here the civic right to a quality LTC, these politics do not fully exclude an economisation or even a partial privatization.

Začínající dopady SARS-CoV-2 do veřejných financí ČR: makrofinanční analýza vybraných položek rozpočtové kapitoly MPSV v komparaci s rokem 2009

Author(s): Jiří Vopátek / Language(s): Czech Issue: 5/2020

The article provides an analysis of the initial effects of the pandemic crisis of 2020 on the public finances of the Czech Republic based on the example of the national collection of defined income tax revenues and selected indicators of the state budget. The paper endeavours to compare 2009 (at which time the impact of the mortgage crisis on the economy was addressed) with 2020. The crisis of 2009 was completely different in character from the crisis of 2020 both in terms of health and the occurrence of the pandemic itself; in 2009, the crisis hit the economy hard and the primary problem related to the financial sector. From the point of view of the Ministry of Labour and Social Affairs, the anticipated significant decrease in income from social security premiums and state employment policy contributions can already be observed. The paper also points out the fundamental difference between the planned state budget deficit and the reality in the event of an unexpected decline in the domestic economy, which forms part of the global economic environment, at a time at which public finances are under pressure following the implementation of a number of government discretionary measures.

Влияние на политическия риск върху капиталовите пазари

Author(s): Elena Simeonova / Language(s): Bulgarian Issue: 1/2012

Sociální zabezpečení je klíčem k české daňové reformě

Author(s): Jaroslav Vostatek / Language(s): Czech Issue: 3/2020

Social security contributions are the main Czech tax channel, without good reason. The Czech government made a resolution to reform these contributions and the income taxes. Two reform attempts of the Ministry of Finance met with resistance of the departmental and private interests. The biggest opponent of an efficient Czech tax reform is the political marketing, separated from tax economics. We have to explain to the marketeers that a radical reform of the social security contributions and income taxes brings not only the elimination of more tax distortions but also a considerable simplification of these public revenues and extensive savings of tax collection costs and corporate administrative burden of complying with taxes. The rationality of the social security contributions is contingent on the welfare regime used in the respective social protection branch. There are major controversies over the public health care financing where departmental and group interests have prevailed due to existence of seven health insurance funds. The suppression of these interests is a precondition for a major rationalization of the health insurance premiums and its integration into common social security contributions and single tax collection point. The reform of the supplementary social accident insurance administered "temporarily" by two private insurance companies (at the expense of the state) seems to be simpler. From the nature of the Czech social protection follows the need for the integration of employee contributions into the personal income tax and the elimination of double taxation of dividends within the corporate income tax reform.

Iracionalita státní podpory transformovaných fondů ve světle jejich z(ne)hodnocení: Využití opt-in strategie pro vyšší výnosy s nižším rizikem v DPS

Author(s): Petr Brabec / Language(s): Czech Issue: 3/2020

Supplementary pension savings, in which over three million contributors participate, continue to include so-called transformed funds, the appreciation in the value of which does not even cover inflation. With the help of an international comparison, the article highlights the irrationality of providing state support for transformed funds when they do not attain the level of appreciation of that of a potential notional defined contribution (NDC) system even without the state support component. Furthermore, the study identifies the preconditions for the functional, advantageous and, at the same time, low-risk settings of such a pension system funding pillar in the Czech Republic employing an opt-in investment strategy. Following such assumptions, calculations are made based on predictions determined via the comparison of more than 50 funding systems from various countries. The calculations conclude that the setting of an opt-in strategy with dynamic investment up to 20 years before retirement, followed by the very gradual transfer to less risky investment funds, maximises the lower risk-return ratio and the yield. Hence, a third pillar pension with an opt-in strategy would provide a higher return than a balanced and conservative fund together with lower risks than those associated with investing in dynamic funds for the whole of the investment period.

Modified Area-based System in Czech Republic

Author(s): Sandra Papavasilevská / Language(s): English Issue: 1/2022

Tax system in the Czech Republic and offers some specific suggestions for reform. In the long term, their taxation could be maintained. Many politicians not only in the Czech Republic believe that a higher property tax on real estate investments can solve the housing crisis. There are several examples showing that such a solution does not lead to the desired result. In many states, such a tax increase solved a certain "housing crisis". Such a solution is at all sensible and will ultimately not only disadvantage economically the socially weaker, who do not have the resources to get their own place. On the other hand, the overall taxation of investment housing could contribute to increasing revenues of municipal budgets without changing the budgetary allocation of taxes. The inclusion of elements of elementary equality and work with so-called local coefficients, possibly combined with the categorisation of immovable property as established in the Land Registry, appears to be a meaningful key to the solution. On the basis of these two groups or categories, differential taxation can be achieved for a wide range of properties without creating room for discussion about what is and is not an investment apartment [OECD 2010]. But there are two weaknesses in dealing with this, namely policy changes, where the increase in the coefficient is unpopular within local authorities, and that it will be quite different in this area. The area-based property tax has been gaining influence in developing and transitional countries around the world. This report first examines how the area-based tax is administered in thirty-eight countries according to statutes. Area-based assessment is more commonly used in rural areas than urban areas, for land than buildings, and with few adjustments. Over half the countries allow some local control [Fischel 2001: 17].The paper presents an overview of the theoretical and practical experience of both the immovable property taxation forms (area-based and value-based) concerning the different aspects of micro and macroefficiency, equity and the “ability to pay” aspects as well as the fiscal and technical aspects, with the special emphasis on (post)transition economies – new EU members. The EU recommendations in this area, especially concerning the shift of tax burden from (labour) income to property, are pointed out. The comparative analysis of relevant taxation in the EU member countries is presented, pointing out that some of them, which have fulfilled the formal requirement of the recurrent taxes on immovable property introduction, still implement a simpler form – the area-based one.In particular, the article focuses on the definition of the tax system in the Czech Republic, and intentionally on the processing of property taxes. Inheritance, gift and acquisition taxes on immovable property, including their definition and the way in which they are transformed, are mentioned in particular in these property taxes. However, the main objective of the work was to approximate the property tax, in relation to value-based taxation or a modified area-based system. Attention is also focused on defining the pluses and minuses of these taxes, what advantages they are, what advantages they are not, and which of the countries uses which system of taxation. The work seeks to highlight why a system is used within the Czech Republic, including its benefits within the tax system.

Demographic and Economic Characteristics of Population as Determinants of the Revenue From The Real Property Tax in the Slovak Republic

Author(s): Lenka Maličká,Jana Lukáčová,Daniela Hadačová / Language(s): English Issue: 4/2022

This paper examines how the demographic and economic structure of the municipalities´ population relates to the share of real property tax on local tax revenue in the Slovak republic. Shares of the productive population, unemployed population pupils, the population aged less than 14 years, and the population aged over 65 years in the total municipal population are involved in the regression analysis based on the panel data. The research covers 2,926 municipalities in the period 2005-2020. Estimation results show a positive relationship between the dependent variable and variables referring to the productive population, unemployed population, and population aged less than 14 years. A negative relationship is observed in the case of variables referring to pupils and the population aged over 65 years.

New Tax Reality for Permanent Establishment of Foreign Enterprises in Poland in a Post-Beps Era

Author(s): Marcin Jamroży,Magdalena Janiszewska,Filip Majdowski / Language(s): English Issue: 3/2022

The main aim of this contribution is to make a review and assess the application of BEPS Action 7 recommendations by the tax administration in Poland when determining whether a non-resident enterprise operating in Poland should be considered to have a permanent establishment (PE). The creation of a PE is crucial for taxable presence in Poland and for identifying the scope of the allocated revenues and expenses (taxable income). Changes to the OECD Model have a genuine practical impact on multinational enterprises and tax administrations and thus they need to be closely examined. The considerations serve to prove the hypothesis that Polish tax authorities apply the

SICAV in the Czech Republic – success story of continuing failure?

Author(s): Filip Horák / Language(s): English Issue: 2/2022

This paper explores the introduction of SICAV in Czech law, its development and the related difficulties including the tax perspective. Although this legal form helped to boost the collective investment sector in the Czech Republic, in particular for qualified investors’ funds, it is under constant threat of law amendments, which have a negative impact on further progress in the popularity of SICAVs as well as other forms of investment funds. SICAV, as a legal form governed by both private (corporate) and public (regulatory) law, presents a good example of how the two sets of partly autonomous rules may clash and cause undesirable effects. The paper highlights the main inefficiencies and discrepancies, which lead to interpretation difficulties and legal uncertainty. The hypothesis of this paper lies in investigating how local factors in one country, such as the influence of other pieces of legislation and tax environment, negatively impact solutions and models which are standardised and successfully deployed across the EU. It is argued that not only legal and regulatory aspects determine the popularity of investment funds, but a wider landscape, including the activities and approach of the supervisory authority and network of professionals (legal and tax advisors or auditors), plays a crucial role in capital markets development

Mikroekonomický dopad zrušené důchodové reformy v ČR z pohledu roku 2019

Author(s): Jiří Vopátek / Language(s): Czech Issue: 1/2020

The paper deals from the microeconomic point of view with the quantification of the impact of „preserved“ participation in the second pension pillar (2013−2015) on the percentage of the first pillar pension benefit with respect to the example of income-typed individuals who retired on a regular retirement basis in 2019. One year of preserved participation leads to a reduction in the percentage assessment of the pension benefit from the first pillar of around 0.43%. By means of model calculations using the example of income-typed individuals and the retirement benefit period, the objective was to determine the amount of the so-called internal rate of return (IRR) in the form of the requirement for a minimum percentage return from the first pillar. Participation in the second pillar, according to modelled situations and defined conditions, appears to be beneficial for individuals whose income is at the level of the general assessment base and up to more than double that amount. For such individuals, the IRR requirement is lower, whereas, conversely, for those on lower incomes the IRR requirement is higher. In particular, the IRR is determined to a significant extent by the period during which the first-pillar pension benefit is drawn.

Zvýšení minimální mzdy od 1. ledna 2020

Author(s): Olga Bičáková / Language(s): Czech Issue: 1/2020

The article considers an amendment to Government Regulation No. 567/2006 Coll., on the minimum wage, via which, as of 1 January 2020, the basic minimum wage was increased, along with lowest guaranteed wage levels, for a fixed weekly working time of 40 hours by CZK 1,250 to CZK 14,600. The author considers that raising the minimum wage in the Czech Republic was justified. The article points both to the need for the closer approximation of earnings in the Czech Republic to those paid in more advanced European countries and to the fact that a comparison of minimum wages paid in the other Visegrad Group countries reflects adversely on the development of this indicator in the Czech Republic.

Daň z podnikání jako nástroj omezení pohybu OSVČ v oblasti stínové ekonomiky

Author(s): Lenka Říhová,Michal Blahout / Language(s): Czech Issue: 1/2019

The high share of self-employed person in employment, coupled with the low income tax receipts of these entities, are the main current issues that fiscal policy of the Czech republic should actively solve. However, the presence of the shadow economy in the form of a seeming business or curtailment of tax liability is a significant problem. Relatively low taxing self-employed workers in comparison with employees, along with the existence of seeming business, puts many self-employed into the role of cheap labour. The amount of income tax collected from the self-employed in the years 2011 to 2016 oscillated around 0.9 to 4.6% of the amount of income tax collected from employees. The aim of this thesis is therefore to introduce the business tax as one of the possibilities to bring a part of the self-employed from the shadow economy to contribute to the stabilization of the current state.

Funding organisations: the case of regional public schools in the Czech Republic and Slovakia

Author(s): Richard Pospíšil,Dana Ondrušková / Language(s): English Issue: 3/2022

Reforms in financing public education are often connected to the redesign of school funding formulas, which present a powerful and efficient tool for providing an effective redistribution of public finance for school organisations. A properly designed formula can, via a bundle of variables, help to adjust differences between schools and mitigate fluctuations to stabilise the sector. Thus, various coefficients are chosen and set by the decision-making authorities; they are based particularly on the political arguments revolving around the relative importance of various indicators. Given these facts, the aim of the present paper is to carry out a comparison of three funding formulas in order to evaluate the allocation of funds to the regional schools with regard to their scope as far as the number of students is concerned. In order to reflect the consequences of different formula funding regimes, the paper presents the results of a comparative study based on the correlation analysis method. It offers unique and comprehensive results pertaining to the impacts of different school funding methods, proving that a bundle of well-designed compensatory factors is able to balance the discrepancies caused by the different sizes of schools. The results are supposed to enable decision-making bodies to rethink and reconsider their strategies for the modern funding of regional schools.

SOCIAL CAPITAL AND SPREAD OF COVID-19 IN POLAND – DO MEMBERSHIP, TRUST, NORMS AND VALUES OR SHARED NARRATIVES MATTER?

Author(s): Urszula Markowska-Przybyła,Alicja Grześkowiak / Language(s): English Issue: 4/2022

The experience of the SARS-CoV-19 pandemic can be a source of valuable information for public health authorities. As we have seen, the incidence is not evenly distributed in space, and the factors influencing it are not fully understood. Aspects of biological, demographic, economic, environmental, and political nature are considered, but it is believed that the social factor may be of critical importance. The density and intensity of social relations, general trust and trust in the authorities, norms and values – i.e., social capital – may have a key impact on the scale of infections. The research conducted so far on this subject does not provide clear conclusions, and the post-communist society, inferior in social capital, has hardly been analyzed. Using data for 73 subregions of Poland and performing regression analysis, we investigate how social capital explains the level of infection rate in the first three waves of the epidemic. The analysis results have shown that the factor of “political leaning” was strongly and negatively related to the infection rate in Poland. The research results indicate that, contrary to the previous studies, structural capital has the same positive effect on reducing the epidemic. However, relational social capital promotes more significant morbidity.