director - Ministarstvo finansija

Budget suficit
BULLETIN OF THE MINISTRY OF FINANCE/JANUARY-MARCH 2006
Budget suficit
The entire work of the Tax Administration and all of its segments,
i.e. Sectors and Territorial Units is reflected in the final
collection of taxes, contributions and other public revenues.
We, in the Tax Administration, recognize cooperation with the
taxpayers and voluntary compliance with the tax regulations, what is
realized through the self-taxation principle. The self-taxation principle
is accepted also in our tax legislation and represents a reflection
of modern world trends in fiscal systems. It enables the taxpayer to
file a tax return and calculate by itself the tax obligations for payments
to be effected in compliance with the terms regulated by law.
Pursuant to this pursuit, gross collection of taxes, contributions
and other budgetary revenues was realized in 2005 to the amount of
521.730.273eur.
Taking into account that return of tax credits, several contributions
paid, mistaken payments etc. are effected from the total realized
collection, the net collection, following the determined returns
reduction for 2005, amounts to 485.915.232eur.
Therefore, aggregate gross collection was reduced by the amounts of
VAT returns, i.e. by the amount of 35.815.041eur ( VAT 33.880.138 eur).
In order to review the collection trend in the reporting period
we did comparative analysis in relation to the collection realized
in 2004
Index of total collection growth in relation to the comparative
period of the last year amounted to 116, what accounts for the
increase in collection by 16% (tax collection was higher by 15% and
contributions collection by 18%).
Nominal values and tax and contributions growth show that:
• Collection of taxes in the period January - December, 2005
amounted to 308.907.000eur, and for the same period in 2004 it
amounted to 268.436.000eur, what is by 15% higher,
• Collection of contributions in the period January - December
2005 amounted to 212.823.000eur, and for the same period of the
last year it amounted to 179.939.000eur, what is by 18% higher.
Income Tax collection was realized to the amount of
90.075.000eur . In relation to the comparative period in 2004, collection
of these revenues was higher by 3%. (In 2004, these revenues were
collected to the amount of 87.042.000eur).
Mirjana Pešalj
In the structure of Income Tax collection, which was realized in
the period from January to December, 2005, the Personal Income Tax
collection makes 97% and amounts to 87.018.000eur. In relation to
the comparative period, collection of this tax was higher by 7%. Such
growth is conditioned by enhanced measures of collection, in the
course of the whole year. The amount of 15.613.000eur was collected
by the application of these measures. Growth of the Personal Income
Tax collection was realized apart from the fact that physical persons
tax rate was reduced by 10%.
Collection of the Independent Activity Income Tax, in the structure
of Income Tax collection, makes 2% and amounts to 1.892.000 eur.
Independent Activity Income taxpayers are in most cases "small taxpayers;,
who are provided with a special treatment in the course of arrears
payment, by the Decree on collection of due and unpaid taxes
and contributions and other public revenues.Tax arrears of taxi drivers,
autotransporters and market-place sellers was"frozen,,.Therefore,
only very small amounts of debt remained to be collected, collection
of which could not contribute to the higher amount of collected income
tax.
Profit tax was collected to the amount of 23.485.000 eur, what was
by 24% higher in relation to the comparative period in 2004 ( index
124 ).This was the result of Profit Tax collection in accordance with tax
returns (64%) and measures taken for the purpose of collection (36%).
The collected amount of VAT (domestic market) in the period January
- December 2005 was 94.729.000 eur, what is by 37% higher in
relation to the comparative period (index 137). These revenues were
generated to the amount of 31.626.000eur by measures taken for the
purpose of collection ( 33% out of the total amount of collected VAT).
Revenues from excises, in relation to the comparative period were
higher by 2%. Revenues on the basis of excises on mineral oils, mineral
oil products and substitutes, in the reporting period, were generated
to the amount of 59.769.000eur, what makes 83,2 % revenues collected
on excise taxes. In relation to the comparative period in 2004,
these revenues were higher by 1,7 % .Revenues on the basis of excise
on alcohol and alcoholic beverage in production were generated to
the amount of 6.079.000eur, what was 8,5% out of the total collected
revenues from excise tax. In relation to the comparative period in
18