Non-fiscal levies and other taxes in the function of Serbia's fiscal competitiveness

Abstract

Fiscal policy, as an integral part of the tax competitiveness of the state, is a powerful tool for attracting foreign investments. When designing tax policy, the state tries to reduce the burden and help attract new investments to the country, i.e. prevent them from flowing out. Accordingly, the goal of this paper is to determine whether non-fiscal levies and other taxes affect the fiscal competitiveness of Serbia. More specifically, whether the business of foreign investors in Serbia depends on the level of non-fiscal levies and other taxes imposed in Serbia. In order to collect primary data, an online survey was conducted with the participation of 88 (from abroad) investors in Serbia in 2001-2019. The research method used was a one-factorial analysis of variance of different groups (ANOVA) and a t-test for independent samples. The results show that non-fiscal levies have a significant impact on tax competitiveness. Namely, foreign investors consider non-fiscal levies to be an extremely important factor when it comes to doing business in Serbia. As for the other taxes analysed (customs duties, excise duties, contributions, and fees), their importance for foreign investors' is neutral and therefore not decisive when choosing Serbia as an investment location.