IMPACT OF TAX POLICIES ON TOURISM COMPETITIVENESS IN SERBIA AND OTHER NEIGHBORING AND EUROPEAN UNION COUNTRIES

Sonja Jovanović, Maja Božilović

DOI Number
10.22190/FUEO1703243J
First page
243
Last page
253

Abstract


Tax policy has a significant impact on the tourism sector, its development, employment, and the decision of tourists to visit a destination. The impact of tax policy on the price of tourism services also reflects on the tourism and travel sector’s competitiveness level. The subject of this paper is tax policy in the area of tourism in Serbia and some neighboring and European Union countries (Croatia, Montenegro, Albania, Macedonia, Bulgaria, Slovenia, Hungary, Romania). The aim of the paper is the analysis of tax rates in the tourism sector in the countries under consideration, and the level of tourism sector’s competitiveness in terms of the impact of tax policy on business and investment. Methodological basis in this paper relies on the World Economic Forum data (WEF) on Travel & Tourism Competitiveness Index (TTCI). Research has shown unfavorable position of Serbia, as well as most countries in the region, in terms of effects of tax policy on business and investment.

Keywords

competitiveness, taxes, tourism, hotel management

Full Text:

PDF

References


Bratić, V., Bejaković, P. & Devčić, A. (2012). Tax system as a factor of tourism competitiveness: The case of Croatia, Procedia - Social and Behavioral Sciences, 44, 250-257.

Čerović, S., Barjaktarović, D. & Knežević, M. (2015). Podrška razvoju turizma kao faktor konkurentnosti Srbije kao turističke destinacije [Support the development of tourism as a factor of Serbia’s competitiveness as a tourist destination], SITCON 2015 - Key Issues on Tourism Destination Competitiveness (pp. 1-8). Belgrade: Singidunum University.

Cota, B. (2016). Jedino izvjesno u poreznoj reformi je – gubitak u turizmu [The only certain thing in the tax reform - a loss in tourism], Retrieved from: http://www.tportal.hr/vijesti/komentari/451398/Jedino-izvjesno-u-poreznoj-reformi-je-gubitak-u-turizmu.html, Accessed on: 24 January 2017.

Dombrovski, R. & Hodžić, S. (2010). Impact of value added tax on tourism, International Business & Economics Research Journal, 9(10), 131-138.

European Commission, VAT rates applied in the Member States of the European Union, August 2016, Retrieved from: http://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf, Accessed on: 25 January 2017.

Geoff, R. (2014). Comparison of tax reliefs, tourist taxes and VAT thresholds in Europe - A study for the Cut Tourism VAT campaign, Retrieved from: http://www.cuttourismvat.co.uk/wp-content/uploads/2013/08/140614-EU-Tourism-tax-comparison-tables-Final.pdf, Accessed on 25 January 2017.

Government of Montenegro, Informacija o analizi uticaja podsticaja i poreskih olakšica u turizmu na ekonomiju i javne finansije Crne Gore u srednjem roku [Information on the analysis of the impact of incentives in tourism on the economy and public finances of Montenegro in medium term], Retrieved from: http://www.gov.me/ResourceManager/FileDownload.aspx?rId=205371&rType=2, Accessed on: 24 January 2017.

Law on Corporate Income Tax Law, “Official Gazette of RS”, Nos. 25/2001, 112/2001, 80/2002, 80/2002 – another law, 43/2003, 84/2004, 18/2010, 101/2011, 119/2012, 47/2013, 108/2013, 68/2014 – another law, 142/2014, 91/2015 – authentic interpretation 112/2015.

Law on Corporate Income Tax, “Official Gazette of RS”, Nos. 25/2001, 80/2002, 80/2002 – another law, 43/2003, 84/2004, 18/2010 and 101/2011.

Law on Mandatory Social Insurance Contributions, “Official Gazette of RS”, Nos. 84/2004, 61/2005, 62/2006, 5/2009, 52/2011, 101/2011, 7/2012 – harmonized dinar amounts, 8/2013 – harmonized dinar amounts, 47/2013, 108/2013, 6/2014 – harmonized dinar amounts, 57/2014, 68/2014 – another law, 5/2015 – harmonized dinar amounts, 112/2015 and 5/2016 – harmonized dinar amounts.

Law on Personal Income Tax, “Official Gazette of RS”, Nos. 24/2001, 80/2002, 80/2002 – another law, 135/2004, 62/2006, 65/2006 – correction, 31/2009, 44/2009, 18/2010, 50/2011, 91/2011 – CC decision, 7/2012 – harmonized dinar amounts, 93/2012, 114/2012 – CC decision, 8/2013 – harmonized dinar amounts, 47/2013, 48/2013 – correction, 108/2013, 6/2014 – harmonized dinar amounts, 57/2014, 68/2014 – another law, 5/2015 – harmonized dinar amounts, 112/2015 and 5/2016 – harmonized dinar amounts).

Law on Value Added Tax, “Official Gazette of RS”, Nos. 84/2004, 86/2004 – correction, 61/2005, 61/2007, 93/2012, 108/2013, 6/2014 – harmonized dinar amounts, 68/2014 – another law, 142/2014, 5/2015 – harmonized dinar amounts, 83/2015 and 5/2016, Article 23.

Ministry of Sustainable Development and Tourism of Montenegro, Unapređenje konkurentnosti Crne Gore kao turističke destinacije [Improvement competitiveness of Montenegro as tourist destantion] (2016), Retrieved from: http://www.mrt.gov.me/vijesti/164337/Unapredenje-konkurentnosti-Crne-Gore-kao-turisticke-destinacije.html, Accessed on: 24 January 2017.

OECD (2014) Tourism Trends and Policies 2014, Taxation and tourism, Retrieved from: http://www.keepeek.com/Digital-Asset-Management/oecd/industry-and-services/oecd-tourism-trends-and-policies-2014/taxation-and-tourism_tour-2014-6-en#page1, 89., Accessed on 24 January 2017.

Radičević, M. & Raičević, B. (2008). Javne finansije teorija i praksa [Public finance theory and practice], Datastatus.

Republic of Macedonia, Public Revenue Office, Retrieved from: http://www.ujp.gov.mk/s/plakjanje/povlasteni_danocni_stapki, Accessed on: 19 January 2017.

Tax Reform Threatens Tourism (2015). DW, 24.06.2015., Retrieved from: http://www.dw.com/sr/reforma-poreza-ugro%C5%BEava-turizam/a-18537737, Accessed on: 20 January 2017.

TMF Group, 2016 VAT rate changes in Europe, Retrieved from: https://www.tmf-group.com/~/media/files/pdfs/vat%20documents/2016%20vat%20rate%20changes%20in%20europe_table_digital.pdf, Accessed on: 24 January 2017.

World Economic Forum (2015) The Travel and Tourism Competitiveness Report 2015, Geneva, Switzerland.

WTTC, Travel & Tourism Economic impact 2016 Annual Update Summary, London, United Kingdom, Retrieved from: https://www.wttc.org/-/media/files/reports/economic%20impact%20research/2016%20documents/economic%20impact%20summary%202016_a4%20web.pdf, Accessed on: 5 February 2017.




DOI: https://doi.org/10.22190/FUEO1703243J

Refbacks

  • There are currently no refbacks.


ISSN 0354-4699 (Print)

ISSN 2406-050X (Online)