REFORMATION AND DECENTRALIZATION OF TAX SYSTEM, IN FUNCTION OF KOSOVO MUNICIPALITY COMPETENCES GROWTH - WITH PARTICULAR EMPHASIS ON THE TOURISM DEVELOPMENT IN THE MUNICIPALITIES OF DUKAGJINI REGION.

Abstract

After the independence the Republic of Kosovo is extremely centralized
and in todays it is considered one of the most centralized countries in Europe. The
high level of centralization has maximally limited the competences for which the
local authorities are responsible, violating the economical, financial and fiscal
independence. Reforming the tax system under the principle of fiscal
decentralization is important for Kosovo, because it will guarantee to the local
governments the necessary resources to meet their legal, strategic and
development obligations. The progress in fiscal decentralization seeks to be built on
trust, confidence and mutual respect. Kosovo not only hasn’t achieved significant
progress in fiscal decentralization but surprisingly this issue do not even is debated
in social and academic life. The today’s trend and current institutional interest for
the accession in EU means the urgent need for measures related to the design of a
program that contains calculation of expenditure with the aim to successfully
implement the reforms for fiscal decentralization and strengthening of local
independence in the field of revenues which are essential for normal municipal
functions. Regarding the level of decentralization, based on the circumstances and
economic - social development, our system should be developed making it
comparable to other EU countries because this means a duty that should be
manifested in achieving international standards of decentralization.