Presumptive Taxation: Lessons from Bulgaria
AbstractThis article draws on the experience of Bulgaria with two forms of presumptive taxes—the patent (licence) tax and the minimum social insurance income thresholds. It argues that there is an inevitable trade-off between efficiency and equity, which may drive presumptive taxation away from its initial objectives of simplicity and lower compliance and enforcement costs. Therefore presumptive taxes should not be overloaded with equity objectives, or used as tax incentives, but rather assigned to enhance collection efficiency and reduce the cost of voluntary tax compliance of the small business. The study concludes that their optimal use might be as licence taxes on micro-businesses and the self-employed levied by local governments rather than as central taxes on small business income.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Post-Communist Economies.
Volume (Year): 18 (2006)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CPCE20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Konstantin Pashev, 2007.
"Tax Decentralization: Solutions for Bulgaria,"
Economic Thought journal,
Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 67-88.
- Tonin, Mirco, 2011.
"Too Low to Be True: The Use of Minimum Thresholds to Fight Tax Evasion,"
IZA Discussion Papers
5509, Institute for the Study of Labor (IZA).
- Tonin, Mirco, 2010. "Too low to be true: the use of minimum thresholds to fight tax evasion," Discussion Paper Series In Economics And Econometrics 1018, Economics Division, School of Social Sciences, University of Southampton.
- Elek, Peter & Kollo, Janos & Reizer, Balázs & Szabó, Péter A., 2011.
"Detecting Wage Under-reporting Using a Double Hurdle Model,"
IZA Discussion Papers
6224, Institute for the Study of Labor (IZA).
- Peter Elek & Janos Kollo & Balazs Reizer & Peter A. Szabo, 2012. "Detecting Wage Under-Reporting Using a Double Hurdle Model," Budapest Working Papers on the Labour Market 1201, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Leibfritz, Willi, 2011. "Undeclared economic activity in central and eastern Europe -- how taxes contribute and how countries respond to the problem," Policy Research Working Paper Series 5923, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.