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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
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    References listed on IDEAS

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    More about this item

    Keywords

    opinion survey; tax reform; tax system; tax policy; Croatia;

    JEL classification:

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

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