Title The effect of tax structure in economic growth

Author B. Gashi, G. Asllani, L. Boqolli

Number/Vol/Date/Year of Publication Volume VI, Issue 2, 2018
Journal International journal of economic and business
administration
Student’s Name Firdaus rohmansa
NIM 22403162
Class/Study Prorgram D/MBS

A. MIND MAP

B. SUMMARY

The republic of kosovo already built and still continuing to make a simple tax system,
which include low tax rates scheme and extended tax basis. there is tow category of taxes,
first is direct taxes and second is indirect taxes. The republix of kosovo already started to
build a simple tax system since 1999 and still continuing. Right now, the tax system is
quite simple andd harmonized. But, the tax system must be reformed including the tax
policy from many segments

From the view of many other countries,increasing taxes affect and gives impact of
making the economists do the reasearch more further for wheter there is a positive impact
or negative impact. There is also an issuess of productivity of government spending that
can impact the economic growth. The reduction of tax rate on tax in consumtion for basic
products and an increase in tax rate on luxury product has a positive effect on the growth
of GDP (asllani and statovci,2018).

Taxes is the main and most important tool for collecting public revenues are presented
in many variety forms. Government revenues can alson affect the economic growth more
that government spending, but we can measures it by eliminated the cause of these trends.

This research purpose is analyse effect of tax structure in economic growth of

Kosovo, also to understand and identify the impact of taxes for economic growth, this
article used econometric model by collecting data and converting them in natural
logarithm using LOG-LOG model. And also to know the positive and negative effect from
the struture of taxes in economic growth.

This reasearch purpose is to create a tax structure that help the economic growth as
like as compatible in economic development growth, give the positive effects on the
revenues, investments, employment and also the economic growth. And it shows that not
all of the taxes forms have a positive effects to the economic growth.

The article can conclude that there is a selective taxes include in this study that tax on
profits, tax on individual business, value added tax, taxation monthly statements, lottery
and gambling winnings, corporation tax and many more give the significant and postive
impact in Kosovo’s GDP. There is taxes that gives negative impact as like as tax personal
and withholding tax, these are not give significant impact to the economic growth.

Changes the structure of the taxe system can influence the economic activity, eventho
not all the tax are changing have equivalent or give positive effect on a long-term growth.
There are government of kosovo can do to grow the economic and the economic
development which is lowering the tax rates, extending the tax basis, reducing tax
exemptions and building a good tax structure.