Türkiye ve Avrupa Birliği Ülkelerinde Vergi Kapasitesi ve Vergi Gayreti: Ampirik Bir Uygulama

Abstract

An efficient tax system is pivotal for effectively implementing fiscal policy and fostering economic development. The extent to which a tax system realizes its full potential determines its efficacy. Nevertheless, existing literature highlights that various economic, social, demographic, and institutional factors can impose limitations on realizing potential tax capacity, thereby constraining the level of tax effort. In this context, this research’s principal objective is to assess tax efforts spanning 1995 to 2021 for 27 European Union member states, 3 European Economic Area nations, and Turkiye. Within this framework, our regression analysis attempts to unveil the influence of critical factors affecting taxable capacity, including sectors with inherent tax challenges, international trade dynamics, the scope of the shadow economy, and the level of financial development. The findings of our study shed light on several noteworthy trends. Northern European countries exhibit a notably higher level of tax effort than the remaining sample countries and Turkiye, which lags behind the sample’s average tax effort level. Furthermore, the study postulates that enhancing financial development and curbing the shadow economy can contribute to the expansion of fiscal space by bolstering tax capacity. Key Words: Tax Capacity, Tax Effort, Tax Policy, Panel Data Analysis JEL Classification: H20, E62, 023