The impact of tax incentives and changes in VAT rates on economic development and social stability


  • Драган Јањић Student of the second cycle of studies



VAT, competitiveness, prices, real wages


Value added tax, as a general consumption tax, significantly in?uences the formation of price policy as well as economic competitiveness and economic development of country. This is especially evident in the changes in tax rates. The reason for this is the fact that, due to the existence of several types of tax rates, certain goods and services are taxed di?erently, and thus categorized di?erently. This categorization, ie. distribution of goods on luxury goods and goods of the wider public interest, has a direct impact on their consumption, as well as on their competitiveness, especially when it comes to the competitiveness of the same products in the markets of di?erent countries. This paper will provide an analysis of the impact of tax rates (i.e. changes in their height) on these categories in the Republic of Serbia. In addition, we will point out certain social aspects of prices, since the level of these costs has in?uence on the level of real wages.


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How to Cite

Јањић, Д. (2014). The impact of tax incentives and changes in VAT rates on economic development and social stability. Acta Economica, 12(21), 141–162.



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