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Effectiveness of the Czech Tax System


  • Leoš Vitek

    () (Ministry of Finance of the Czech Republic, University of Economics, Prague)

  • Jan Pavel

    (University of Economics, Prague)

  • Jana Krbova

    (University of Economics, Prague)


The first part of the paper discusses methodologies of measurement for the administrative and compliance costs of taxation. The next section analyzes the overall administrative costs of the Czech tax system. The results show that the overall administrative costs of the Czech tax system are approximately 1.5 % of the total tax revenue. The third part of the paper shows the measurement of the compliance cost in the Czech Republic. Our results show that the most effective Czech taxes for business taxpayers are the value added tax, the corporate income tax and the road tax. Relatively higher costs are connected with the personal income tax and real estate tax.

Suggested Citation

  • Leoš Vitek & Jan Pavel & Jana Krbova, 2004. "Effectiveness of the Czech Tax System," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 4(2), pages 55-71, July.
  • Handle: RePEc:bic:journl:v:4:y:2004:i:2:p:55-71

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    References listed on IDEAS

    1. Chow, Peter C. Y., 1987. "Causality between export growth and industrial development : Empirial evidence from the NICs," Journal of Development Economics, Elsevier, vol. 26(1), pages 55-63, June.
    2. De Gregorio, Jose, 1992. "The effects of inflation on economic growth : Lessons from Latin America," European Economic Review, Elsevier, vol. 36(2-3), pages 417-425, April.
    3. De Gregorio, Jose, 1992. "Economic growth in Latin America," Journal of Development Economics, Elsevier, vol. 39(1), pages 59-84, July.
    4. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
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    More about this item


    tax policy; tax effectiveness; administrative costs; compliance costs; Czech Republic;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation


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