Rich enjoy Serbian tax system

Well no wonder the state doesn't have any money, no one is getting taxed! Cheesh! 10 to15 percent is absolutely nothing, check out what the rest of the developed world is collecting from taxes.

jeju, there are enough loopholes in "developed" world tax systems and enough tax havens in this world for the smart money to pay practically no taxes whatsoever. Here, check this http://news.bbc.co.uk/1/hi/business/4763984.stm

I think the Serbian tax system should be overhauled.

Putting aside tax rates themselves I would rather look at the demand side. If you are unemployed in Serbia you receive no benefit at all, unless you have worked 30 odd years or are seriously impoverished.

Considering that we are all paying tax rates here (unless we are rich in which case it works out better) at a similar level to other European econimies that allow their citizens to receive some unemployment supplement, either taxes should be cut, or taxes should be raised to a similar level as in the UK for those on higher incomes. That money should then go toward the social services budget and regular unemployment payments should be made to those who cannot support themselves (not just the most impoverished).

But I also agree with Yaroslav that taxes on cigarettes should be raised further to bring more funds into the budget.

Political cowardice and lack of drive (the only one that had that was Djindjic) means that this is unlikely to happen and instead we will do the usual and have to put up with 'they' believe is best.

jeju, the state has no money because of general incompetence, corruption, nepotism or inability to fulfill it;s obligations.

Just based on income taxes the state fails to collect some 2 billion euros in revenues.

Then theirs the fact that over 17.5% of the budget (around 3.5 billion euros) goes to pa the wages of 28,000 civil servants -- when in reality only about half are needed.

Also. If Serbia wanted to collect more taxes they could always double taxes on cigarettes

Most of the rich in Serbia have businesses based in Serbia. Whilst trying to encourage business investment and expansion it would be good to keep corporate taxes relatively low, especially to attract foreign companies, but at the same time it might be a good idea to tax all Serbian citizens on their annual income, wherever they are, much like the US do, with higher rates for the rich than is currently the situation.

It would also be good if the politicians had the guts to open up Serbia's markets as well, instead of allowing national monopolies to thrive. There would be a decent influx of foreign business which would help grow the economy.

Unfortunately, i can't see Serbia attracting any rich foreigners even with low or non existent taxes as it's not a place most would choose to reside compared to other low tax regions in europe. To make it more attractive would require a lot of investment. it's a case of which came first, the chicken or the egg!

The tax rate is right here. This encourages those higher earners to stay and create wealth as well as spend more money in Serbia. Higher rates would cause lots of money to be hidden or exported

You guys are all wrong. A decision to invest involves more then looking at the tax system. It is my view that even if tax rates in Serbia are zero, there will be no enough foreign investors. The reasons are simple. Public institutions – you government are not serious in reforming Serbia. In addition to taxes, you need to do a lot on the area of rule of law, infrastructure (hard and soft) and what your definitely need to do is get rid of primitive trade measures against your neighbours and your government's daily political rhetoric on Kosovo. That's not the way to develop your country

The tax rate is right here. This encourages those higher earners to stay and create wealth as well as spend more money in Serbia. Higher rates would cause lots of money to be hidden or exported

jeju, there are enough loopholes in "developed" world tax systems and enough tax havens in this world for the smart money to pay practically no taxes whatsoever. Here, check this http://news.bbc.co.uk/1/hi/business/4763984.stm

I think the Serbian tax system should be overhauled.

Putting aside tax rates themselves I would rather look at the demand side. If you are unemployed in Serbia you receive no benefit at all, unless you have worked 30 odd years or are seriously impoverished.

Considering that we are all paying tax rates here (unless we are rich in which case it works out better) at a similar level to other European econimies that allow their citizens to receive some unemployment supplement, either taxes should be cut, or taxes should be raised to a similar level as in the UK for those on higher incomes. That money should then go toward the social services budget and regular unemployment payments should be made to those who cannot support themselves (not just the most impoverished).

But I also agree with Yaroslav that taxes on cigarettes should be raised further to bring more funds into the budget.

Political cowardice and lack of drive (the only one that had that was Djindjic) means that this is unlikely to happen and instead we will do the usual and have to put up with 'they' believe is best.

Well no wonder the state doesn't have any money, no one is getting taxed! Cheesh! 10 to15 percent is absolutely nothing, check out what the rest of the developed world is collecting from taxes.

You guys are all wrong. A decision to invest involves more then looking at the tax system. It is my view that even if tax rates in Serbia are zero, there will be no enough foreign investors. The reasons are simple. Public institutions – you government are not serious in reforming Serbia. In addition to taxes, you need to do a lot on the area of rule of law, infrastructure (hard and soft) and what your definitely need to do is get rid of primitive trade measures against your neighbours and your government's daily political rhetoric on Kosovo. That's not the way to develop your country

Most of the rich in Serbia have businesses based in Serbia. Whilst trying to encourage business investment and expansion it would be good to keep corporate taxes relatively low, especially to attract foreign companies, but at the same time it might be a good idea to tax all Serbian citizens on their annual income, wherever they are, much like the US do, with higher rates for the rich than is currently the situation.

It would also be good if the politicians had the guts to open up Serbia's markets as well, instead of allowing national monopolies to thrive. There would be a decent influx of foreign business which would help grow the economy.

Unfortunately, i can't see Serbia attracting any rich foreigners even with low or non existent taxes as it's not a place most would choose to reside compared to other low tax regions in europe. To make it more attractive would require a lot of investment. it's a case of which came first, the chicken or the egg!

jeju, the state has no money because of general incompetence, corruption, nepotism or inability to fulfill it;s obligations.

Just based on income taxes the state fails to collect some 2 billion euros in revenues.

Then theirs the fact that over 17.5% of the budget (around 3.5 billion euros) goes to pa the wages of 28,000 civil servants -- when in reality only about half are needed.

Also. If Serbia wanted to collect more taxes they could always double taxes on cigarettes