IDEAS home Printed from https://ideas.repec.org/a/ipf/finteo/v38y2014i4p405-439.html
   My bibliography  Save this article

Perspectives of tax reforms in Croatia: expert opinion survey

Author

Listed:
  • Hrvoje Simovic

    (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia)

  • Helena Blazic

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

  • Ana Stambuk

    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

Abstract

In order to shape tax reform it is necessary objectively to assess the current stateof-the-art of and of the outlook for the tax system. After having reviewed all previous reforms in the light of the consumption-based (interest-adjusted) concept of direct taxation, which was almost systematically implemented in Croatia in 1994, we present the results of a broad expert opinion survey about the Croatian tax system. The most interesting results suggest the maintenance/(re)introduction of different tax incentives and reduced VAT rates, rejection of a flat tax as well as decrease of tax brackets, an increase in alcohol and tobacco duties, the introduction of a financial activities tax, a further shift from income to consumption, a decrease of the tax share in GDP and a belief in the behavioral responsiveness of tax decreases/exemptions, as well as a firm commitment to the principle of equity. The last three economic views/values are important predictors of other tax attitudes.

Suggested Citation

  • Hrvoje Simovic & Helena Blazic & Ana Stambuk, 2014. "Perspectives of tax reforms in Croatia: expert opinion survey," Financial Theory and Practice, Institute of Public Finance, vol. 38(4), pages 405-439.
    • Handle: RePEc:ipf:finteo:v:38:y:2014:i:4:p:405-439
    as

    Download full text from publisher

    File URL: http://fintp.ijf.hr/upload/files/ftp/2014/4/simovic_blazic_stambuk.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alexander Klemm, 2007. "Allowances for Corporate Equity in Practice," CESifo Economic Studies, CESifo Group, vol. 53(2), pages 229-262, June.
    2. Osterloh, Steffen & Heinemann, Friedrich, 2013. "The political economy of corporate tax harmonization — Why do European politicians (dis)like minimum tax rates?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 18-37.
    3. Manfred Rose & Rolf Wiswesser, 1998. "Tax Reform in Transition Economies: Experiences from the Croatian Tax Reform Process of the 1990s," Palgrave Macmillan Books, in: Peter Birch Sørensen (ed.), Public Finance in a Changing World, chapter 9, pages 257-278, Palgrave Macmillan.
    4. Eline Heijden & Jan Nelissen & Jan Potters, 2007. "Opinions on the Tax Deductibility of Mortgages and the Consensus Effect," De Economist, Springer, vol. 155(2), pages 141-159, June.
    5. Philippe Thalmann, 2004. "The Public Acceptance of Green Taxes: 2 Million Voters Express Their Opinion," Public Choice, Springer, vol. 119(1_2), pages 179-217, April.
    6. Benno Torgler & Friedrich Schneider, 2007. "What Shapes Attitudes Toward Paying Taxes? Evidence from Multicultural European Countries," Social Science Quarterly, Southwestern Social Science Association, vol. 88(2), pages 443-470, June.
    7. Birney, Mayling & Graetz, Michael J. & Shapiro, Ian, 2006. "Public Opinion and the Push toRepeal the Estate Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(3), pages 439-461, September.
    8. Brannon, Gerard M., 1995. "What Will the 'NTA Opinions' Have to Do With Federal Tax Policy--1995-6?," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(1), pages 149-154, March.
    9. Kirchler, Erich, 1999. "Reactance to taxation: Employers' attitudes towards taxes," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 28(2), pages 131-138, July.
    10. Benno Torgler & Friedrich Schneider, 2005. "Attitudes Towards Paying Taxes in Austria: An Empirical Analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(2), pages 231-250, June.
    11. Kallbekken, Steffen & Sælen, Håkon, 2011. "Public acceptance for environmental taxes: Self-interest, environmental and distributional concerns," Energy Policy, Elsevier, vol. 39(5), pages 2966-2973, May.
    12. Fisher, Ronald C, 1985. "Taxes and Expenditures in the U.S.: Public Opinion Surveys and Incidence Analysis Compared," Economic Inquiry, Western Economic Association International, vol. 23(3), pages 525-550, July.
    13. Åsa Lofgren & Katarina Nordblom, 2010. "Attitudes towards CO2 taxation - is there an Al Gore effect?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(9), pages 845-848.
    14. Brannon, Gerard M., 1995. "What Will the 'NTA Opinions' Have to Do With Federal Tax Policy--1995-6?," National Tax Journal, National Tax Association, vol. 48(1), pages 149-54, March.
    15. Dornstein, Miriam, 1987. "Taxes: Attitudes and perceptions and their social bases," Journal of Economic Psychology, Elsevier, vol. 8(1), pages 55-76, March.
    16. Slemrod, Joel, 1995. "Professional Opinions About Tax Policy: 1994 and 1934," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(1), pages 121-147, March.
    17. Michael Keen & John King, 2002. "The Croatian profit tax: an ACE in practice," Fiscal Studies, Institute for Fiscal Studies, vol. 23(3), pages 401-418, September.
    18. Robert W. McGee (ed.), 2008. "Taxation and Public Finance in Transition and Developing Economies," Springer Books, Springer, number 978-0-387-25712-9, June.
    19. Slemrod, Joel, 1995. "Professional Opinions About Tax Policy: 1994 and 1934," National Tax Journal, National Tax Association, vol. 48(1), pages 121-47, March.
    20. Henrik Hammar & Sverker C. Jagers & Katarina Nordblom, 2008. "Attitudes towards Tax Levels: A Multi-Tax Comparison," Fiscal Studies, Institute for Fiscal Studies, vol. 29(4), pages 523-543, December.
    21. Diane Lim & Joel Slemrod & Eleanor Wilking, 2013. "Expert and Public Attitudes Towards Tax Policy: 2013, 1994, and 1934," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(4), pages 775-806, December.
    22. Ashworth, John & Heyndels, Bruno, 1997. "Politicians' preferences on local tax rates: An empirical analysis," European Journal of Political Economy, Elsevier, vol. 13(3), pages 479-502, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marko Crnogorac & Santiago Lago-Pe?as, 2019. "Tax evasion in the countries of Former Yugoslavia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 823-851.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rumpf, Dominik, 2013. "Zinsbereinigung bei der Dualen Einkommensteuer," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 32, number urn:isbn:9783161528699, December.
    2. Ross Adriana M. & McGee Robert W., 2011. "Attitudes toward Tax Evasion: A Demographic Study of Malaysia," Asian Journal of Law and Economics, De Gruyter, vol. 2(3), pages 1-51, October.
    3. Stefano Carattini & Andrea Baranzini & Philippe Thalmann & Frédéric Varone & Frank Vöhringer, 2017. "Green Taxes in a Post-Paris World: Are Millions of Nays Inevitable?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 97-128, September.
    4. Nils aus dem Moore, 2014. "Taxes and Corporate Financing Decisions – Evidence from the Belgian ACE Reform," Ruhr Economic Papers 0533, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Douenne, Thomas & Fabre, Adrien, 2020. "French attitudes on climate change, carbon taxation and other climate policies," Ecological Economics, Elsevier, vol. 169(C).
    6. Torgler, Benno & Schneider, Friedrich, 2009. "The impact of tax morale and institutional quality on the shadow economy," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 228-245, April.
    7. Konstantinos Tzioumis & Leora F. Klapper, 2012. "Taxation and Capital Structure: Evidence from a Transition Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 165-190, June.
    8. Peter Birch Sørensen, 2003. "Neutral Taxation of Shareholder Income: A Norwegian Tax Reform Proposal," EPRU Working Paper Series 03-06, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    9. James Alm, 2017. "Is Economics Useful for Public Policy?," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 835-854, April.
    10. Ivo Bischoff & Nataliya Kusa, 2016. "Should wealth transfers be taxed? Citizens’ view on a fundamental question," MAGKS Papers on Economics 201636, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Konstantinos Tzioumis & Leora F. Klapper, 2012. "Taxation and Capital Structure: Evidence from a Transition Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 165-190, June.
    12. Torgler, Benno, 2011. "Tax morale and compliance : review of evidence and case studies for Europe," Policy Research Working Paper Series 5922, The World Bank.
    13. Devereux, Michael P., 2012. "Issues in the Design of Taxes on Corporate Profit," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(3), pages 709-730, September.
    14. Jaanika Merikull & Tairi Room & Karsten Staehr, 2013. "Perceptions of unreported economic activities in Baltic Firms. Individualistic and non-individualistic motives," Bank of Estonia Working Papers wp2012-8, Bank of Estonia, revised 04 Feb 2013.
    15. Ivo Bischoff & Nataliya Kusa, 2016. "Should there be a more active role of family care assistants in long-term care provision? – survey evidence on the view of German citizens," MAGKS Papers on Economics 201642, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    16. Petutschnig, Matthias & Rünger, Silke, 2017. "The effects of a tax allowance for growth and investment: Empirical evidence from a firm-level analysis," arqus Discussion Papers in Quantitative Tax Research 221, arqus - Arbeitskreis Quantitative Steuerlehre.
    17. Ruud de Mooij & Michael P. Devereux, 2008. "Alternative Systems of Business Tax in Europe: An applied analysis of ACE and CBIT Reforms," Taxation Studies 0023, Directorate General Taxation and Customs Union, European Commission.
    18. Sælen, Håkon Grøn & Aasen, Marianne, 2023. "Exploring public opposition and support across different climate policies: Poles apart?," Ecological Economics, Elsevier, vol. 209(C).
    19. Ewald, Jens & Sterner, Thomas & Sterner, Erik, 2022. "Understanding the resistance to carbon taxes: Drivers and barriers among the general public and fuel-tax protesters," Resource and Energy Economics, Elsevier, vol. 70(C).
    20. Sommer, Stephan & Mattauch, Linus & Pahle, Michael, 2022. "Supporting carbon taxes: The role of fairness," Ecological Economics, Elsevier, vol. 195(C).

    More about this item

    Keywords

    opinion survey; tax reform; tax system; tax policy; Croatia;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipf:finteo:v:38:y:2014:i:4:p:405-439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martina Fabris (email available below). General contact details of provider: https://edirc.repec.org/data/ijfffhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.