The redistributive effects of personal taxes and social benefits in the Republic of Serbia
In this paper we measure the influence of the instruments of Serbia’s fiscal system - personal taxes (personal income tax and social security contributions) and social benefits (means tested and nonmeans tested) - on income redistribution, using the latest data from the Household Budget Sur...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, Belgrade
2014-01-01
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| Series: | Ekonomski Anali |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2014/0013-32641403091D.pdf |
| Summary: | In this paper we measure the influence of the instruments of Serbia’s fiscal
system - personal taxes (personal income tax and social security
contributions) and social benefits (means tested and nonmeans tested) - on
income redistribution, using the latest data from the Household Budget Survey
2012. We analyse the redistributive effects of the fiscal system for the year
2013 and of the fiscal system that has been functioning since 1st January
2014. We find that the redistributive effect reduces income inequality by
about 50% in both observed years. Social benefits create 98% of vertical
redistribution (2013), whereas personal taxes initiate 2% (2013). State
pensions, means-tested social benefits, and social security contributions are
most important in reducing inequality in Serbia (2013). The partial fiscal
reform (2014) has not changed the rank of the focused fiscal instruments. |
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| ISSN: | 0013-3264 1820-7375 |