The Effects of Import Duties on the Stimulation of Domestic Production

Karadjova, Vera (2017) The Effects of Import Duties on the Stimulation of Domestic Production. In: The sixth International Scientific Conference “Employment, Education and Enterpreneurship” (EEE 2017), Faculty of Business Economics and Entrepreneurship, 19-21 October 2017, Belgrade, Serbia.

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Several economic goals of each national economy are realized using import duties, such as: fiscal, protective, security, information, etc., but also stimulation function. The emphasis of this paper is placed on the stimulation function of import duties (VAT, customs, excises, etc.), by applying general and preferential tax rates, on the example of the Republic of Macedonia. When importing goods and services in Macedonia, a general tax rate of 18% is applied (this rate applies to all imports, except for imports that are taxed with a preferential tax rate) and a preferential tax rate of 5% (for imports for certain types of goods specified in the nomenclature of the Customs Tariff, and determined by the Decision for determination of the goods and services which are subject to preferential value added tax rate). With the adoption of new amendments and supplements to the Decision on determining goods and services that are subject to preferential tax rates, the import value and the VAT revenues on imports are affected, and thus also the production, the export and the citizen’s life quality are affected. The stimulative effects of import duties are reflected and can be analyzed by the value of the raw materials which are imported by applying preferential tax rates, stimulating effects of preferential tax rates on the development of domestic agricultural and livestock production, incentive effects of preferential tax duties on the industry development, effects of preferential tax rates on the increase in the diversification of domestic products and the increase in the competitiveness of domestic products. All these effects have an impact on the national economy economic reality, especially in terms of increasing exports and foreign exchange inflows, as well as raising the quantity and quality of meeting the needs of the population.

Item Type: Conference or Workshop Item (Paper)
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Tourism and Hospitality
Depositing User: Prof. d-r Vera Karadjova
Date Deposited: 27 May 2020 22:17
Last Modified: 27 May 2020 22:17

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