IDEAS home Printed from https://ideas.repec.org/a/bas/econth/y2007i7p67-88.html
   My bibliography  Save this article

Tax Decentralization: Solutions for Bulgaria

Author

Listed:
  • Konstantin Pashev

Abstract

The study draws on the theory of optimal taxation and the practice in a number of federal and unitary countries to outline the conceptual framework of the allocation of revenue responsibilities among levels of government. À distinction has been made between decentralized tax policy (the power to set tax bases and rates) and tax administration (collection of taxes). Possible solutions for Bulgaria are drawn and formed on this base. It has been justified that, the strengthening of the tax autonomy of local government is the main objective of the reform in local finances but appropriate taxes are few in number and are with à limited revenue potential. Optimization of the real estate tax has been proposed, including taxation on local incomes from rent as well as local patent tax. The revenue potential of these autonomous local taxes especially in small municipalities is not large, which leads to the necessity of a semi-autonomous parallel local tax on personal incomes, as well as substantial central subsidies i.e. re-allocation of tax revenues across municipalities.

Suggested Citation

  • Konstantin Pashev, 2007. "Tax Decentralization: Solutions for Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 67-88.
  • Handle: RePEc:bas:econth:y:2007:i:7:p:67-88
    as

    Download full text from publisher

    File URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=15ffcdbd-4469-4ee8-91ec-7b2152317995&articleid=751330d0-d82b-4cc1-b057-9eebf2f80069#a751330d0-d82b-4cc1-b057-9eebf2f80069
    Download Restriction: Fee access

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tugrul Gurgur & Anwar Shah, 2014. "Localization and corruption: panacea or pandora's box?," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 109-136, May.
    2. Konstantin Pashev, 2006. "Presumptive Taxation: Lessons from Bulgaria," Post-Communist Economies, Taylor & Francis Journals, vol. 18(4), pages 399-418.
    3. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

    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:bas:econth:y:2007:i:7:p:67-88. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diana Dimitrova). General contact details of provider: http://edirc.repec.org/data/ikbasbg.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.