engleski

The Concept Of Consumption Oriented Taxation And Its Adequacy For Transitional Economies

The Concept of consumption oriented taxation represents a new method of personal-income and profit taxation. The main idea of this Concept is taxation of consumption realised on the base of earned income. In that way, the Concept incorporates the advantages of an income tax as well as the idea of consumption taxation. In implementation of the Concept, two tax calculation methods can be used: savings-adjusted and interest-adjusted method. Despite their differences they have same important positive effects, namely they eliminate the possibility of double taxation and contribute to creation of desirable characteristics of a tax system. Besides that, implementation of this Concept in a company makes it possible to increase capital through stimulation of investments and of enrepreneurship. Further advantage should be realised through an increased inflow of foreign capital. Taking into account the lack of capital that economies in transition face nowadays, this Concept could be understood as a possible solution to their problems and could contribute to economic growth and development.

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